Huge embezzlement in China's affordable housing projects

Billions of yuan was embezzled or swindled from large-scale affordable housing construction projects last year, China's auditing authorities have uncovered.

The National Audit Office (NAO) said in a statement on Friday that a nationwide auditing campaign revealed 7.83 billion yuan (1.27 billion U.S. dollars) was appropriated in 2013 to fund non-affordable housing projects like construction of infrastructures and industrial parks.

The campaign carried out from December to March also detected that 38 organs and individuals defrauded 1.54 billion yuan in shanty town renovation projects by falsifying documents.

In addition, some 47,500 ineligible families benefited from affordable housing as approval procedures were slack in some regions, according to the statement.

The NAO has told related authorities to rectify wrongdoing, and police have started to probe alleged crimes.

China turned to affordable housing projects to improve people's livelihood as well as spur investment as the country is trying to stabilize its economy in a slowdown.

But many are worried that some people in power may take advantage of these billion-dollar projects.