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Dead Beijing vice-mayor blamed for $17b fraud

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A total of 18.3 billion yuan (HK$17.01 billion) has been found missing from Beijing's treasury due to falsification and illegal transfers of funds by disgraced vice-mayor Wang Baosen , his successor said yesterday.

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The confirmed amount contrasted sharply with the figure disclosed earlier by the authorities, who accused Wang of committing economic crimes worth only US$37 million (HK$285.86 million).

'After investigation and examination by the State Auditing Administration, the total amount of money involved in the case was put at 18.3 billion yuan,' said Vice-Mayor Jin Renqing yesterday at the Beijing Municipal People's Congress.

The legislature has been told Wang diverted some four billion yuan from the city's treasury within the first quarter of last year.

Of the total, 2.18 billion yuan was transferred from the budget to become 'funds retained in advance' on Wang's orders, Mr Jin said in his annual financial report.

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Wang falsified a further 1.93 billion yuan on account by anticipating the grain income within that period, Mr Jin was quoted as saying by China-funded Ta Kung Pao yesterday.

The 800 legislators also heard that the Ministry of Finance and the State Auditing Administration had verified the amount Wang had covered up or diverted from the capital's income since 1988.

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