Chinese auditors said the money was misappropriated from funds allocated in 2004 and 2005, and warned the total figure could be even higher. Corrupt local officials have long been rumoured to have pocketed money meant for the resettlement of residents.

Some 1.4 million people have been displaced by the massive dam project. The national audit office said it believed 272m yuan ($34.8m) of 9.6bn yuan allocated in 2004 and 2005 had been misappropriated by local authorities, Xinhua news agency reports. … Read the full story.