Home  -  Publications  -  Audit Reports  -  2014 > text
No. 8 of 2014 (General Serial No. 182): Situation Regarding the Handling of 35 Economic Cases and Matters Referred by the CNAO and Closed by May 2014
2014-06-26日   Soure : :

The National Audit Office (CNAO) has regularly followed up on the situation regarding the handling of economic cases and matters transferred to relevant departments and units. The situation regarding 35 cases and matters that have been closed and made available recently is hereby announced as follows:

1. The case concerning misappropriation of funds by Li Zeyuan, former senior adviser and actual controller of Shenzhen Airlines Co., Ltd., and others

During the auditing the CNAO found that from 2005 to 2006, Li Zeyuan, in collusion with Zhao Xiang, former chairman of Shenzhen Airlines Co., Ltd., and other company executives were suspected of misappropriating company funds to repay debts of other enterprises controlled by these individuals. In January 2010, the CNAO transferred leads to the case to the Central Commission for Discipline Inspection for further investigation. In January 2014, the Beijing Municipality Second Intermediate People's Court sentenced Li Zeyuan to 14 years imprisonment and deprivation of political rights for 2 years, sentenced 4 persons including Zhao Xiang to imprisonment ranging from 6 to 3 years, on charges of misappropriation of funds, and recovered 1.2 billion yuan of misappropriated funds.

2. The case concerning acceptance of bribes by Du Bidong, former deputy inspector of Shaanxi Province Communications Department, and others

During the auditing the CNAO found that from 2008 to 2012, Du Bidong and others were suspected of soliciting and accepting bribes in the construction management of employee residences of the Provincial Communications Department. In December 2012, the CNAO transferred leads to this case to the Central Commission for Discipline Inspection for further investigation. In 2013, the Xi'an City Intermediate People's Court sentenced Du Bidong to 15 years imprisonment, confiscation of 800,000 yuan of property and recovery of 3.15 million yuan of illicit money on charges of acceptance of bribes; the Shaanxi Provincial Commission for Discipline Inspection imposed serious warning within the Party on Cao Sen, former director of the Department of Communications.

3. The case concerning acceptance of bribes by Liao Qinghua, former deputy director of the Development and Reform Bureau, Huizhou City, Guangdong Province, and others

During the auditing the CNAO found that from 2010 to 2011, Liao Qinghua and others were suspected of accepting bribes from construction enterprises in the land requisition and resettlement of the West-East Gas Transmission No.2 pipeline project within the boundary of Huizhou City, Guangdong Province. In October 2011, the CNAO transferred leads to this case to the Ministry of Public Security for further investigation. In December 2012, the Shanwei City Intermediate People's Court, Guangdong Province, sentenced Liao Qinghua to 10 years imprisonment, confiscation of 300,000 yuan of personal property and recovery of all criminal proceeds on charges of acceptance of bribes; sentenced Lin Xiaoguang, former legal representative of Shenzhen City Huayu Engineering Construction Co., Ltd. to 2 years imprisonment with 3 years probation on charges of bribery.

4. The case concerning embezzlement by Fu Haibing, former Party secretary, and Lü Yufei, mayor, of Jiangxi Township, Xihe County, Gansu Province,

During the auditing the CNAO found that from 2010 to 2011, Lü Yufei and others through issuing false invoices, preparing false rosters, etc., extracted 250,000 yuan of poverty relief funds. In June 2013, the CNAO transferred leads to this case to the Gansu Province Party Committee and government for further investigation. In October 2013, the Hui County People's Court, Gansu Province, sentenced Lü Yufei and Fu Haibing to 10 years and 8 years imprisonment respectively on charges of embezzlement and abuse of power, and recovered 330,000 yuan of illicit money.

5. The case concerning acceptance of bribes by Xiang Linghua, former Party secretary, and Yang Jun, mayor, of Shihui Township, Qianjiang District, Chongqing Municipality

During the auditing the CNAO found that from 2009 to 2013, Yang Jun and others practiced fraud in helping to contract for the central government’s poverty relief demonstration project. In August 2013, the CNAO transferred leads to this case to the Chongqing Municipal People's Government for further investigation. In December 2013, the Qianjiang District People's Court sentenced Xiang Linghua and Yang Jun to 11 years and 10 years and 6 months imprisonment respectively on charges of acceptance of bribes and recovered 806,900 yuan of illicit money.

6. The case concerning embezzlement and acceptance of bribes by Duan Guilong, Director of the Poverty Relief Office, Luozehe Township, Yiliang County, Yunnan Province

During the auditing the CNAO found that, since 2008, Duan Guilong deposited a cumulative 7.3129 million yuan of poverty relief special funds in his personal account, and is suspected of embezzling part of the money. In April 2013, the CNAO transferred this case to the Yunnan Province Commission for Discipline Inspection for further investigation. In December 2013, the Yiliang County People's Court sentenced Duan Guilong to 10 years imprisonment on charges of embezzlement and acceptance of bribes, recovered 345,900 yuan of illicit money, and recovered the poverty relief funds privately deposited.

7. The case concerning embezzlement and acceptance of bribes by Chen Yunfeng, former director of the Water Research Institute, Anhui Province Research Institute of Environmental Science

During the auditing the CNAO found that from 2009 to 2012, Chen Yunfeng took advantage of his position as the person responsible for the water special topic and the results demonstration project, was suspected of accepting bribes from construction enterprises, and extracting a total of more than 4 million yuan by using fictitious bills. In June 2012, the CNAO transferred leads to this case to the Supreme People's Procuratorate for further investigation. In January 2014, the Chizhou City Intermediate People's Court, Anhui Province, sentenced Chen Yunfeng to 14 years imprisonment on charges of embezzlement and acceptance of bribes, and recovered the ill-gotten gains.

8. The case concerning embezzlement by Song Maoqiang, former executive Dean, Software College, Beijing University of Posts and Telecommunications

During the auditing the CNAO found that from 2010 to 2011, during the period when responsible for research projects, Song Maoqiang fabricated service personnel lists to falsely claim "service fees", and was suspected of embezzlement. In April 2012, the CNAO transferred leads to this case to the Ministry of Education for further investigation. In December 2013, the Beijing Municipality Haidian District People's Court sentenced Song Maoqiang to 10 years and 6 months imprisonment and deprived of political rights for 1 year on charges of embezzlement. Prior to this, his illicit money had been fully returned.

9. The case concerning acceptance of bribes by Xu Huixing, former general manager, and Hu Jinpei, chief accountant, of Guangzhou Ocean Shipping Company

During the auditing the CNAO found that from December 2005 to December 2009, through the proposal and approval of Xu Huixing and Hu Jinpei, Guangzhou Ocean Shipping Company paid 19.54 million yuan in the name of "consulting fees" to two private enterprises. In October 2010, the CNAO transferred leads to this case to the Central Commission for Discipline Inspection for further investigation. In December 2012, the Guangzhou City Intermediate People's Court sentenced Xu Huixing and Hu Jinpei to 7 years and 5 years and 6 months imprisonment respectively, and confiscation of personal property totaling 400,000 yuan on charges of acceptance of bribes.

10. The case concerning writing false value added tax special invoices by Liaoning Jikang Pharmaceutical Co., Ltd.

During the auditing the CNAO found that from 2010 to 2011, Liaoning Jikang Pharmaceutical Co., Ltd. in the absence of procurement of drugs, illegally made out VAT special invoices from several hundred pharmaceutical dealers, totaling 230 million yuan in price and tax, and used them to deduct input VAT, etc. In 2012, the CNAO transferred leads to this case to the Ministry of Public Security, etc. for further investigation. In November 2013, the Dandong City Intermediate People's Court, Liaoning Province, sentenced 13 persons including Wang Jingming, chairman of Liaoning Jikang Pharmaceutical Co., Ltd., to imprisonment ranging from 12 years to 1 year, on charges of falsely making out VAT special invoices, sentenced the Company and 5 other enterprises in the same case to fines ranging from 200,000 to 700,000 yuan, and recovered 237 million yuan of illegal gains.

11. The case concerning defrauding loans by Zhao Meijun, legal representative of Henan Lüjia Animal Husbandry Co., Ltd., and others

During the auditing the CNAO found that from 2006 to 2011, Zhao Mejun and others were suspected of practicing fraud and defrauding more than 100 million yuan of credit funds; Gao Daiwen, former director of Qi County Rural Credit Cooperative Union, Henan Province, and others were suspected of illegally issuing loans. In February 2012, the CNAO transferred leads to the case to the Ministry of Public Security for further investigation. In January 2014, the Hebi City Shancheng District People's Court, Henan Province, ruled Zhao Meijun guilty of defrauding loans, false capital contributions and capital flight, and imposed a sentence of 5 years and 6 months imprisonment and 800,000 yuan in fines as concurrent punishment for multiple crimes; ruled Gao Daiwen guilty of illegal issuance of loans and absorbing customer funds without recording on the books, and imposed a sentence of 8 years and 6 months imprisonment and 150,000 yuan in fines as concurrent punishment for multiple crimes; sentenced 2 other persons responsible in the same case to 2 years and 2 years and 6 months imprisonment and a total of 250,000 yuan in fines on charges of defrauding loans.

12. The case concerning defrauding loans by executives of Guangxi Liuzhou Liyu Group Co., Ltd.

During the auditing the CNAO found that from 2007 to 2008, Xu Lingxiang (who fled after the case was exposed), actual controller of Guangxi Liuzhou Liyu Group Co., Ltd., in collusion with acting general manager Zeng Yong, funds planning department manager Peng Li and others, by forging economic contracts and financial information, etc., defrauded more than 200 million yuan of loans from the Guangxi Liuzhou City Branch of the Agricultural Development Bank of China, which were then misappropriated and embezzled. In July 2009, the CNAO transferred leads to this case to the Ministry of Public Security for further investigation. In March 2013, the Liubei District People's Court of Liuzhou City, Guangxi, sentenced Zeng Yong to 6 years imprisonment and fines of 300,000 yuan on charges of defrauding loans; sentenced Peng Li to 3 years and 6 months imprisonment and fines of 150,000 yuan; recovered close to 200 million yuan of defrauded bank loans.

13. The case concerning defrauding loans by Zhou Yinbao and Xu Chaoyang, former legal representatives of Beijing Weiye Automotive Group Co., Ltd., and others

During the auditing the CNAO found that from 2007 to 2008, Zhou Yinbao and Xu Chaoyang together with other enterprises were suspected of defrauding credit funds through forging financial information and economic contracts, etc. In June 2010, the CNAO transferred leads to this case to the Ministry of Public Security for further investigation. In July 2013, the Beijing Municipality First Intermediate People's Court sentenced Zhou Yinbao and Xu Chaoyang to 3 years and 3 years and 6 months imprisonment respectively, and two other responsible persons to 3 years and 4 years imprisonment respectively, and fines totaling 135,000 yuan, on charges of defrauding loans and acceptance of bills; sentenced 3 enterprises including Beijing Weiye Automotive Group Co., Ltd. to fines totaling 6 million yuan on charges of defrauding loans and acceptance of bills.

14. The case concerning defrauding loans by Xu Xuesong, former legal representative of Liaoning Huludao Xirui Shipping Group Co., Ltd. and others

During the auditing the CNAO found that from 2007 to 2011, Xu Xuesong and others were suspected of defrauding more than 600 million yuan of loans and using for other purposes, through privately engraving seals, forging contracts, etc. In August 2012, the CNAO transferred leads to this case to the Ministry of Public Security for further investigation. In January 2014, the Longgang District People's Court of Huludao City, Liaoning Province, sentenced Xu Xuesong to 1 year and 3 months imprisonment on charges of defrauding loans; sentenced two other persons responsible each to 1 year and 1 month imprisonment, and fines totaling 750,000 yuan; sentenced 3 enterprises including Huludao Bohai Shipping Co., Ltd. to fines totaling 332 million yuan.

15. The case concerning defrauding loans by Hu Daihong, former legal representative of Tianyu Construction Co., Ltd., and others

During the auditing the CNAO found that in 2011, Hu Daihong and others were suspected of using fictitious accounting statements and trading background information, etc., to defraud more than 100 million yuan of credit funds, most of which were misappropriated for illegal private lending; Ye Min, customer accounts manager at the Hangzhou Qiutao Branch of China Construction Bank was suspected of irregularly issuing financial instruments. In July 2012, the CNAO transferred leads to this case to the Ministry of Public Security for further investigation. In January 2014, the Jianggan District People's Court of Hangzhou City, Zhejiang Province, sentenced 3 persons including Hu Daihong to imprisonments ranging from 2 to 3 years and fines totaling 200,000 yuan on charges of defrauding loans and acceptance of bills; sentenced Tianyu Construction Co., Ltd. to fines of 1 million yuan; sentenced Ye Min to 6 years imprisonment and fines of 20,000 yuan on charges of illegal issuance of loans and illegal acceptance of bills.

16. The case concerning acceptance of bribes by Wan Guoyong, cadre of Hubei Province Economic and Information Technology Commission

During the auditing the CNAO found that in 2011, Junye Dyeing and Textile Co., Ltd. of Yidu City, Hubei Province, was suspected of using fictitious information to defraud central financial incentive funds for elimination of obsolete production capacity. In March 2012, the CNAO transferred leads to this case to the Hubei Province People's Procuratorate for further investigation. In September 2013, the Qianjiang City People's Court, Hubei Province, ruled Wan Guoyong guilty of acceptance of bribes and abuse of power, and imposed a sentence of 7 years and 6 months imprisonment, confiscation of 300,000 yuan of personal property and confiscation of 1.255 million yuan of proceeds from acceptance of bribes, as concurrent punishment for the two crimes; In January 2013, the Dangyang City People's Court, Hubei Province, sentenced Junye Dyeing and Textile Co., Ltd. of Yidu City to fines of 200,000 yuan on charges of units offering bribes.

17. The case concerning embezzlement by Cao Endong, cadre of Sujiatun District Agriculture and Forestry Bureau, Shenyang City, Liaoning Province

During the auditing the CNAO found that from 2006 to 2012, Cao Endong was suspected of taking advantage of his position to accept bribes, and embezzled demolition and relocation compensation fees totaling 100,000 yuan. In January 2013, the CNAO transferred leads to this case to the Shenyang City People's Procuratorate for further investigation. In December 2013, the Sujiatun District People's Court of Shenyang City sentenced Cao Endong to 8 years imprisonment and recovery of 100,000 yuan in illegal proceeds on charges of embezzlement and acceptance of bribes.

18. The case concerning acceptance of bribes by Guo Wei, cadre of Jingmen City Development and Reform Commission, Hubei Province

During the auditing the CNAO found that from 2010 to 2011, laxity in verification and control on the part of Guo Wei resulted in resource conservation and environmental protection funds within the central budget being defrauded by enterprises. In February 2013, the CNAO transferred leads to this case to the Hubei Province People's Procuratorate for further investigation. In September 2013, the Jingmen City Dongbao District People's Court sentenced Guo Wei to 3 years imprisonment with 5 years probation, confiscation of 30,000 yuan of personal property, and recovery of defrauded funds and gains from accepting bribes, on charges of acceptance of bribes.

19. The case concerning acceptance of bribes by Wang Jinhong, former director of the Enterprise Management Commission, Zelin Township, Echeng District, Ezhou City, Hubei Province, and others

During the auditing the CNAO found that in 2010, laxity in verification and control on the part of staff of the Echeng District Economic and Trade Bureau resulted in the central finance award funds for elimination of obsolete production capacity being defrauded by enterprises. In March 2013, the CNAO transferred leads to this case to the Hubei Province People's Procuratorate for further investigation. In September 2013, the Ezhou City Liangzihu District People's Court sentenced Wang Jinhong to 1 year and 3 months imprisonment with 1 year and 6 months probation on charges of acceptance of bribes; in the same case ruled Zhou Jinbo, cadre of Zelin Township Statistics Station guilty of acceptance of bribes but exempt from criminal punishment. Personal criminal proceeds have been fully recovered.

20. The case concerning dereliction of duty by Wang Yasheng, former deputy director of Macheng City Economic and Information Technology Bureau, Hubei Province, and others

During the auditing the CNAO found that in 2011, laxity in verification and control on the part of Wang Yasheng and Zheng Xueliang, director of Macheng City Small and Medium Enterprise Science and Technology Information Service Center, resulted in the central finance award funds for elimination of obsolete production capacity being defrauded by enterprises. In January 2013, the CNAO transferred leads to this case to the Hubei Province People's Procuratorate for further investigation. In December 2013, the Macheng City People's Court ruled Wang Yasheng and Zheng Xueliang guilty of dereliction of duty but exempt from criminal punishment. The defrauded funds have been fully recovered.

21. The case concerning dereliction of duty by Cai Gang, cadre of Huanggang City Development and Reform Commission, Hubei Province, and others

During the auditing the CNAO found that in 2011, laxity in verification and control on the part of Huanggang City Development and Reform Commission and the Finance Bureau resulted in the central finance award funds for energy conservation technological transformation being defrauded by enterprises. In January 2013, the CNAO transferred leads to this case to the Hubei Province People's Procuratorate for further investigation. In June 2013, the Huanggang City Huangzhou District People's Court ruled Cai Gang guilty of dereliction of duty but exempt from criminal punishment. The defrauded funds have been recovered.

22. The case concerning embezzlement by Wang Qi, accountant of Nankai District Disabled Persons Labor Services Office, Tianjin Municipality

During the auditing the CNAO found that from 2006 to 2012, Wang Qi was suspected of taking advantage of his position to withdraw cash from the unit’s accounts, and through altering invoices, forging bank receipts, etc., embezzled more than 5.5 million yuan of disabled persons’ employment security funds. In March 2012, the CNAO transferred leads to this case to the Tianjin Municipality People's Procuratorate for further investigation. In December 2012, the Tianjin Municipality First Intermediate People's Court sentenced Wang Qi to life imprisonment, confiscation of all personal property, and recovery of the illicit money and goods on charges of embezzlement.

23. The case concerning defrauding by Han Ming, individually owned industrial and commercial business

During the auditing the CNAO found that from 2009 to 2011, Han Ming, during the demolition and relocation process of the Beijing Municipality Puhuangyu freeway municipal project, was suspected of practicing fraud and defrauding comprehensive subsidy funds for suspension of production and business. In September 2011, the CNAO transferred leads to this case to the Beijing Municipality Party Committee and municipal government for further investigation. In June 2013, the Beijing Municipality Higher People's Court sentenced Han Ming to 14 years imprisonment, 3 years deprivation of political rights and fines of 200,000 yuan on charges of fraud, and ordered restitution of 5.3371 million yuan of illegal gains.

24. The case concerning fraud by Wang Wensheng, principal of Boyao Labor Services Co., Ltd., Tianjin Municipality

During the auditing the CNAO found that from 2006 to 2010, the Company was suspected of falsely reporting employment of unemployed persons by listing names only, to defraud wage subsidies for public service jobs. In July 2012, the CNAO transferred leads to this case to the Tianjin Municipality People's Procuratorate for further investigation. In March 2014, the Tianjin Municipality First Intermediate People's Court sentenced Wang Wensheng to 13 years imprisonment and a fine of 3 million yuan on charges of fraud, and recovered 2.137 million yuan of illegal gains.

25. The case concerning tax evasion by Deng Jiarong, former chief of Pengshui County Chengxin Construction Materials Supply Station, Chongqing Municipality

During the auditing the CNAO found that from 2006 to 2008, the Supply Station, in the process of providing steel products to the Qianjiang-Pengshui expressway, issued 19.43 million yuan of fictitious invoices, was suspected of tax evasion. In August 2013, the CNAO transferred leads to this case to the Pengshui County Public Security Bureau for further investigation. In December 2013, the Pengshui County People's Court sentenced Deng Jiarong to 3 years imprisonment with 4 years probation, and fines of 200,000 yuan on charges of tax evasion. Deng Jiarong has paid the tax authorities 176,100 yuan in taxes and late fees.

26. The case concerning misappropriation of public funds by Li Zhenwen, accountant of Horinger County Civil Affairs Bureau, Inner Mongolia

During the auditing the CNAO found that in 2010, Li Zhenwen, taking advantage of position, misappropriated 20,000 yuan of Qinghai Yushu earthquake relief donations. In April 2012, the CNAO transferred leads to this case to the Hohhot City People's Procuratorate for further investigation. In October 2012, the Horinger County People's Court ruled Li Zhenwen guilty of embezzling public funds, but exempt from criminal punishment. The misappropriated funds were refunded in full before the case was established.

27. The issue concerning negligence in the management of arable land by Zhou Ming, former director of Hebei Province Department of Land and Resources, and others

During the auditing the CNAO found that in 2006, Zhou Ming irregularly approved Hebei Province Yongxing Real Estate Development Company, formerly affiliated with the Province’s Department of Land and Resources, to continue the support policies prior to corporate restructuring, resulting in the enterprise gaining improper profits. In 2011, the CNAO transferred leads to this case to the Central Commission for Discipline Inspection for further investigation. In November 2013, the Hebei Province Commission for Discipline Inspection found Zhou Ming and Ming Chai, deputy chairman of the Zhangjiakou City People's Congress Standing Committee (former Director of Zhangjiakou City Land and Resources Bureau) negligent and imposed sanctions of serious warning and warning within the Party respectively.

28. The issue concerning using public funds to arrange for family members to accompany group tours abroad by the China Academy of Urban Planning and Design

During the auditing the CNAO found that from 2009 to 2010, Li Xiaojiang, president of the Academy approved 8 of its affiliated units including the Planning Institute to commission a travel agency to make study abroad travel arrangements for 175 persons, and pay all costs, including the costs of 9 accompanying family members. In December 2011, the CNAO transferred this issue to the department in charge, the Ministry of Housing and Urban Construction, to deal with. In March 2012, the Ministry of Housing and Urban Construction ordered Li Xiaojiang to make a profound self-examination, recover 139,500 yuan of family member expenses, and removed from office Yin Qiang, former director of the Planning Institute.

29. The issue concerning issuance of compensation off-the-books by the Business Qualification Registration Center of the Department of Housing and Urban Construction

During the auditing the CNAO found that from 2005 to 2012, the Business Qualification Registration Center of the Ministry of Housing and Urban Construction accounted part of its business income off-the-books, and paid these out to its staff in the name of service fees and royalties. In May 2013, the CNAO transferred this issue to the Central Commission for Discipline Inspection’s resident Discipline Inspection Group at the Ministry of Housing and Urban Construction for further investigation. In January 2014, the Ministry of Housing and Urban Construction’s Discipline Inspection Group conducted admonishing talks with Zhao Chunshan, Director of the Business Qualification Registration Center; the Ministry of Housing and Urban Construction’s leading Party group circulated a notice of criticism on the Business Qualification Registration Center; 2.1917 million yuan of off-the-books funds have been recovered.

30. The issue concerning extraction and misappropriation of rural dilapidated buildings reconstruction and other project funds by the Luozehe Township government, Yiliang County, Yunnan Province

During the auditing the CNAO found that from 2010 to 2012, the Luozehe Township government extracted and misappropriated rural dilapidated buildings reconstruction, earthquake subsidized housing project and thatched cottages reconstruction funds, to cover deficiencies in construction funds for transformation and highlighting of township features, etc. In July 2013, the CNAO transferred this issue to the Yunnan Province Party Committee and provincial government for further investigation. In August 2013, the Yunnan Province Commission for Discipline Inspection and Department of Supervision imposed on 6 persons including Gao Zhengkun, former Party Secretary of Luozehe Township, and Gao Fazhong, Deputy Secretary, sanctions of serious warning within the Party, warning within the Party, and record of administrative demerit, etc., respectively; conducted admonishing talks with 3 other persons responsible and ordered written self-examinations; 850,000 yuan of special funds not yet spent has been recovered.

31. The issue concerning false disclosure of information by Sichuan Kelun Pharmaceutical Co., Ltd.

During the auditing the CNAO found that in 2011, in the process of organizing acquisition of assets, the Company failed to disclose in accordance with provisions the counterparty’s situation and the affiliate relationship between the two transacting parties. In February 2013, the CNAO transferred the issue to the CSRC to deal with. In May 2014, the CSRC issued a warning to the Company, and imposed fines of 300,000 yuan; issued warnings to Liu Gexin and 4 other executives, and imposed fines ranging from 50,000 yuan to 30,000 yuan.

32. The issue concerning losses resulting from irregular foreign investment by Dai Xiaoming, former chairman, and Mao Junqiang, general manager, Chengdu Industry Investment Group Co., Ltd., and others

During the auditing the CNAO found that Dai Xiaoming, Mao Junqiang and Lü Maogang, manager of the Company’s investment banking division, failed to fulfill their duties in accordance with provisions and entrusted the management of investment funds to unqualified institutions, and irregularly made decisions resulting in state assets facing losses. In March 2013, the CNAO transferred this issue to the Sichuan Province Party Committee and provincial government for further investigation. In July 2013, the Chengdu City Commission for Discipline Inspection resolved to remove Mao Junqiang from office, and dissolve the labor contract with Lü Maogang. Issues related to Dai Xiaoming are being further investigated together with other prior issues under investigation.

33. The issue concerning defrauding financial funds by Shanghai Guangming Foods (Group) Co., Ltd. in collusion with 4 project supervision and other institutions

During the auditing the CNAO found that in 2012, in the Xinhai Farm’s aquaculture farm construction project, Shanghai Guangming Foods (Group) Co., Ltd. in collusion with 4 project supervision and price review institutions, used false supervision reports and price review reports to defraud 12.62 million yuan of financial funds. In March 2013, the CNAO transferred this issue to the Shanghai Urban and Rural Construction and Transportation Commission for further investigation. In March 2014, the Shanghai Urban and Rural Construction and Transportation Commission imposed fines of 75,000 yuan on Shanghai Anzheng Construction Consulting Co., Ltd.; ordered Shanghai No. 1 Surveyor Office Co., Ltd. to rectify the issue of the quality of price review reports; the issue of Shanghai Fangjing Construction Consulting Co., Ltd. failing to obtain qualifications for project supervision has been transferred to relevant departments for further investigation. The defrauded funds have been fully recovered.

34. The issue concerning the project group lead by Xiamen University professors He Xiaoxing and Lin Boqiang using bills unrelated to the project for reimbursement of research expenses

During the auditing the CNAO found that from 2008 to 2012, the project group led by He Xiaoxing and Lin Boqiang used bills unrelated to the project for reimbursement of research expenses. In November 2012, the CNAO transferred this issue to the Ministry of Education for further investigation. In December 2013, Xiamen University imposed sanctions of serious warning within the Party and reduction in job level on He Xiaoxing, and imposed a sanction of administrative warning on Lin Boqiang. Lin Boqiang has returned the 120,000 yuan of irregularly reimbursed funds.

35. The issue concerning loss of state-owned assets resulting from irregular guarantees provided by Hong Liangtu, general manager of Xiamen Nanqiang Construction Engineering Co., Ltd. affiliated with Xiamen University

During the auditing the CNAO found that from 2009 to 2010, without collective research, Hong Liangtu irregularly decided to provide guarantees for personal loans, and bore joint guarantee liabilities and waived right of recourse after being involved in a suit. In August 2012, the CNAO transferred this issue to the Ministry of Education to deal with. In December 2013, Xiamen University imposed sanctions of serious warning within the Party on Hong Liangtu, ordered the unit in charge to revoke his qualification as legal representative of Xiamen Nanqiang Construction Engineering Co, Ltd., and demanded that he personally bear the loss of 215,600 yuan.