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      Economy

      Nation uncovers more accounting problems with Three Gorges Dam

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      2015-09-11 08:17Global Times Editor: Li Yan

      Chinese audit watchdog has found more accounting problems with projects linked to the $59 billion Three Gorges Dam, the world's biggest hydropower scheme, following a critical report in 2014 that revealed nepotism and other corrupt practices.

      The State audit office has conducted 21 inspections since construction began in 1992, uncovering issues such as embezzlement, but continues to find problems, it said in a statement on its website on Thursday.

      The National Audit Office found accounting problems amounting to almost 2 billion yuan ($314 million) in the final accounts for a 7.1 billion yuan underground hydroelectric plant.

      These included 1.54 billion yuan from improper bidding and 337 million yuan in duplicate calculations, it said, noting that too much money had been spent on some equipment, while management oversight was lax.

      The Three Gorges Corp, which runs the dam, is now "proactively organizing rectifications" having received the report, the auditor said, noting that it would watch developments.

      "China Three Gorges Corp attaches a great degree of importance to the problems pointed out by the audit," the company said in a statement on its website.

      "At present all the problems pointed out by the audit have already been finished or rectified."

      The dam has long been controversial. Between 1992 and 2009, all citizens had to pay a levy built into power prices across China to channel money toward its construction, a project overshadowed by compulsory relocations of residents and environmental concerns.

      In 2014, the central government slammed the Three Gorges Corp for shady property deals and dodgy bidding procedures.

      In 2000, six years before the project was completed, authorities busted a ring of officials who had siphoned off hundreds of millions of yuan in resettlement funds.

        

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