A second audit of the Beijing-Shanghai railway uncovered more evidence of fraud, mismanagement, waste and irregular accounting and procurement that totaled billions of yuan, Reuters reported. Published on the government’s website at http://www.gov.cn, the report from the National Audit Office said irregularities occurred as early as the bidding process in December 2007, five months before construction broke ground. The Ministry of Railways shortened preliminary review times for some bidders and bought grossly overpriced supplies from non-bidding suppliers worth at least US$134.3 million. The report also found wrongdoing by local governments: The Jiangning Economic Development Zone in Nanjing, for example, received US$6.3 million after submitting false documents to apply for land compensation. The railway has struggled to pay contractors and suppliers. At the end of May 2011, the Beijing-Shanghai line owed US$1.3 billion to 656 suppliers and 1,471 contractors. A previous audit revealed almost US$30 million of funds was misappropriated through 2010.
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