Another corruption scandal has been discovered by government officials that are actively cracking down on malfeasance. The China Daily reports that the Ministry of Science and Technology recently uncovered illegal activities by private companies and universities.

For the first time ever, the Ministry of Science and Technology has revealed specific details about an alleged corruption case involving four cases of misappropriation.

Like Us on Facebook

Large amounts of public funds previously allocated to fund technological development were found to have been diverted and the funds were then spent on personal expenditures.

In some instances applicants for the earmarked funds used fake invoices, receipts, and other paperwork to get the available funds.

Reports surfaced that a heat-diffusion company in Dailan, Liaoning province, and the Beijing University of Posts and Telecommunication are implicated in the scheme.

The heat-diffusion company was conducting a study involving ecological public lighting and low-carbon buildings in Dailan.

Ministry officials conducted an investigation that revealed Dailan was guilty of embezzling 4.07 million yuan ($658,650 USD) from the earmarked research funds.

Government auditors also uncovered a trail of fake financial documents that were used to defraud the government.

The funds that were given to the company were reclaimed by Ministry officials. The company has now been banned from conducting any technological studies for a period of three years.

Beijing University of Posts and Telecommunication was also required to remit the funds that it obtained through fraud.

The Ministry's audit verified suspicions that the university was fraudulently receiving funds.

In some instances, large consultation fees to experts and the remittance of fake railway tickets were used in fraudulent invoices that were submitted to claim the funds.