China probes hundreds of quake-fraud complaints

Chinese officials have uncovered unsettling examples of earthquake relief fraud as millions of dollars in donations pour in from across the country and around the world.

The May 12 quake killed an estimated 70,000 people and left as many as five million others homeless.

Across stores and shops in China, it is impossible to go anywhere without seeing a jar or a box for donations to help those who lost their homes in the quake, the CBC's Anthony Germain reported.

But there is also shock and indignation that some people are using the tragedy to line their own pockets.

In Shaanxi province, Liu Shaoming, the head of a food-processing company, was arrested for allegedly siphoning off grain from aid packages, China's state news agency Xinhua reported.

He was supposed to deliver thousands of 10-kilogram bags of grain, but his bags were found to be at least one kilogram lighter. Investigators also alleged the grain was adulterated with other substances.

Ten other counties in the area have complained their aid packages are also lighter than they were supposed to be.

In Shanghai, authorities allege a branch manager of the Industrial and Commercial Bank of China spent more than $4,000 worth of donations to buy his staff 56 pairs of Nike running shoes, then falsified the invoices to make it appear the bank had purchased rain gear and clothing for earthquake victims.

Supervision Minister Ma Wen, a top anti-corruption official, said Monday that 12 people have been fired for dereliction of duty and the misuse of earthquake relief supplies.

Ma told a news conference in Beijing that her department has received 1,178 complaints involving the response to the quake and so far has dealt with 1,000 of them.

Administrative punishments have been handed out to 43 officials, the most serious being removal from office, Ma said.

China's Premier Wen Jiabao has called for the country's battered earthquake zone to be rebuilt within two years. Schools and other buildings must meet the highest safety standards.

Chinese state media quoted Wen as saying the country's leadership is urging governments in Sichuan and other affected provinces to push the reconstruction effort into a higher gear.