Boozy gov't banquets continue to abuse public funds

(Ecns.cn) – As the traditional Spring Festival approaches, inspections, reappointments and annual assessments of government officials are in full swing all over China, resulting in a yearly climax of government feasting – and heavy drinking of pricey liquor – paid for with hard-earned public funds.

In Xiaoxian County of east China's Anhui Province, the practice of such extravagant consumption is hardly news, but recently a number of local officials have also begun monopolizing the wholesale market of liquor products there, which are mainly served at their own "official" banquets at public expense, according to Southern Weekend.

This problem was also noted by the People's Daily on January 10, 2012, which pointed out that misuse of public money for government banquets has already become a "cultural tradition" in the bureaucratic jungle of Xiaoxian County, as both officials and the populace turn a blind eye.

Wines and delicacies

At noon on December 21, 2011, the Jiaotong Hotel of Xiaoxian County was full of government officials from the local construction bureau, the traffic police brigade and the road transport bureau. In the following three days, officials from other county-level departments also dined there, including the politics and law committee, the water conservation bureau, the investment promotion bureau and the food and drug administration, reported the Southern Weekend.

It has been confirmed that the hotel is a regularly-used dining spot for government receptions, where officials can foot the bill by signing their names and balancing their accounts on a monthly basis. However, they can also use this "privilege" for private purposes.

The normal standard for a government feast includes 14 dishes, two packs of cigarettes and five bottles of wine in Xiaoxian, costing over 1,000 yuan (US$158), yet the local government had incurred debt of about 700 million yuan (US$110.7 million) by the end of 2010.

According to statistics released by the local auditing bureau, the rate of the "three public consumptions" (overseas trips, banquets and vehicles) to the overall expenditure of public funds rose from 28.5 percent in 2009 to 42.46 percent in 2010, with reception spending the most conspicuous part of the increase.

On November 18, 2011, after the auditing bureau announced its report on Wang Zhiyong, the Party Chief of Guanqiao Town, the government found itself in an embarrassing position: Wang had approved a 420,000-yuan (US$66,400) cash advance for receptions, which was way over budget.

Officials become businessmen

Liquor is undoubtedly a major expense among the three public consumptions. In Xiaoxian, the sales volume of wine averages about 150 million yuan (US$23.7 million) every year, and government feasts are said to have driven up the figure.

On December 22, 2011, the county-level construction bureau booked a VIP room in the Jiaotong Hotel, where officials consumed three bottles of wine. On the same day, members of the road transport bureau also dined there, in Room 201, and tossed back four bottles of high-end wine, according to Southern Weekend.

It was reported that four bottles of wine is a common number for a government feast, and that most of the officials who attend are ranked higher than the vice-ministerial level.

It may come as no surprise then, that with such a big demand for liquor, many officials have begun selling wine themselves.

According to the manager of a local restaurant, officials usually choose wines of the same brand at government banquets, and that the local investment promotion bureau will normally fall back on the brand that the director of the bureau sells as an agent.

A local commercial agent of a wine brand revealed that liquor venders must bribe different officials at key positions to expand their businesses, which is already a hidden secret.

Ban on lavish spending

The issue of rampant government feasting on the public's tab has raised much concern in society, and citizens have long complained of officials drinking high-end liquor at banquets, which is a blatant misuse of tax money.

And though the government reiterated that is has taken strict measures to crack down on such abuse, those efforts appear to be largely ineffective.

A Shanghai legislator recently suggested banning high-priced Moutai liquor at official banquets, saying local disciplinary authorities should also launch routine inspections to stop the expensive liquor from being served at official banquets, according to Shanghai Daily.

It was seen as at least a concrete move to limit the extravagance – for what it's worth. Currently the price of a bottle of 106-proof Flying Moutai, the brand's bestseller, has shot up to 2,100 yuan (US$332) from 200 yuan (US$31.6) in 2000. A limited bottle of Moutai produced in 1992 and decorated with gold fetched a record 8.9 million yuan (US$1.41 million) at an auction in April 2010.