Local Government in China Faked Signatures and Fingerprints on Traffic Tickets

Introduction

A local government in China was recently exposed for faking signatures and fingerprints on nearly 2,000 traffic tickets. This incident came to light after a truck driver filed a complaint, leading to a probe by provincial authorities. It appears that cash-strapped local governments in China have been resorting to such practices to boost their finances.

The Complaint and Investigation

The truck driver, identified as Xu, reported that he was fined $70.40 on the spot after his cargo of coal spilled over. However, he did not receive any official notice of the offense, nor did he sign or provide fingerprints for any documentation. This prompted him to file a complaint, which led to a thorough investigation by Hebei provincial authorities.

The Findings

The investigation revealed that the transport bureau in She County, located in Hebei province, had forged Xu's signature. Shockingly, this was not an isolated incident. Out of the 2,099 traffic tickets issued by the bureau last year, 1,964 of them had fake signatures and fingerprints. The State Council, China's cabinet, disclosed these findings in a statement.

Actions Taken

As a result of the investigation, four law enforcement officers have been suspended, and five senior bureau officials have been punished for their involvement in the forgeries. The State Council did not specify the nature of the punishment meted out to these individuals.

Link to Excessive Fines

State media CCTV has connected this case to the prevalent use of excessive and arbitrary fines as a means of generating revenue in certain regions of China. This practice has been described as an "open secret." An example cited was the case of a restaurant in Shanghai being fined $704 for serving shredded cucumber without a license.

Crackdown on Revenue-Generating Practices

To address this issue, the Beijing government has issued warnings and initiated crackdowns on such practices aimed at revenue generation. These actions reflect concerns over the misuse of fines and the need to curb this behavior.

Financial Struggles of Local Governments

These incidents highlight the financial struggles faced by local governments in China. With nearly $10 trillion in local government financing vehicle (LGFV) debt, repayment has become a significant challenge. This debt burden adds to the existing economic risks faced by China, including a property crisis, deflationary pressure, and a demographic crisis.

In conclusion, the revelation of a local government in China faking signatures and fingerprints on traffic tickets has raised concerns about the misuse of fines and the need for stricter regulations. The crackdown on revenue-generating practices reflects the government's determination to address this issue. However, the larger problem of financial struggles faced by local governments remains, posing risks to China's economy.—————————————————————————————————————————————
By: htan@insider.com (Huileng Tan)
Title: Local Government in China Faked Signatures and Fingerprints on Traffic Tickets
Sourced From: www.businessinsider.com/china-local-government-faked-signatures-traffic-tickets-fines-revenue-debt-2024-1
Published Date: Fri, 26 Jan 2024 09:08:50 +0000