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Audit Finds Millions Lost to Fraud, Waste on Beijing-Shanghai Rail

6 years ago282 views

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An audit has found a litany of problems, costing billions of yuan, in the high-speed rail network connecting Beijing to Shanghai. The findings by the National Audit Office adds to existing corruption and safety issues that's plagued the Chinese regime's prized infrastructure project.

Hundreds of millions of dollars have been lost to fraud, mismanagement and irregularities during the construction of the Beijing to Shanghai high-speed rail network.

That's according to an audit by the National Audit Office which released its findings on Monday.

The 820 mile long railway opened in June last year and had costed 34 billion dollars to complete.


The Ministry of Railway also overlooked suppliers who won bids at a lower cost, and instead purchased $134 million dollars-worth of materials from non-bidding suppliers.

Another 65 million dollars was wasted on train windshields after a design specification change three months before the lines opened.


Anti-corruption campaigner Zhang Jianzhong believes these findings reflect a common problem within China.

[Zhang Jianzhong, Anti-Corruption Campaigner]
"Corruption is not just an phenomenon now, but something done by a whole class of people who seeks power and interest. This has become an open secret, and those involved are doing what they can to engage in corruption."

At more than 5,000 miles, China's high-speed rail network is the longest in the world.

The Communist regime's highly prized project has been plagued with problems though.

Its former Railway Minister Liu Zhijun was sacked last year for "serious disciplinary violations", while a deadly train crash in eastern China sparked safety concerns.

State-run media also reported a section of the high-speed railway in central China had collapsed from heavy rainfall.