A recent report in the Outlook Weekly, a Chinese current affairs magazine, has revealed that some local authorities in the country are seeking to hand out fines for their own financial gain.

The article said that some grassroots law enforcement departments were increasing their revenues through the imposition of various fines or charges under the name of law enforcement since a percentage of fines was refunded to law enforcement departments and individuals.

The policy of the Public Security Bureau of Gongzhuling City in northeast China's Jilin Province is to refund 10 percent of all fines to individual policeman and 20 percent to grassroots police stations, the magazine, sponsored by Xinhua, reported.

In central Hunan Province, drivers have complained that 40 speed limit signs and speed cameras have been erected along a 25-kilometer stretch of what is supposed to be a high speed road in the hope of being able to increase the number of speeding fines. Some of them even require drivers to drive less than 20 kilometers per hour, it said.

In 2006, the total fines imposed on traffic regulation violators in Gongzhuling City reached 11 million yuan, of which 1.1 million (143,230 U.S. dollars) was refunded to 50 traffic policemen - a bonus of 22,000 yuan each, it said.

In another example, the magazine reported that a county government in north China's Shanxi province had built a luxurious government office building with 10 million yuan (1.31 million U.S.dollars) obtained from fine revenues, pointing out that the county is listed as an underdeveloped area by the central government.

Under the existing financial system, Chinese administrative, executive and judicial departments are encouraged to "make profits by themselves" instead of solely relying on financial allocation from the state budget, the article argued.

Instead of turning over revenue accrued from fines, the local departments keep the money which has led to a high instance of arbitrary charges and fines.

In 2006, gains from all kinds of charges totaled about one trillion yuan, accounting for one quarter of total government revenue, the magazine reported.

"The law enforcement departments tend to commercialize fines because of the legal existence of off-budget capital under China's current financial system," Li Chenyan a professor from Peking University told Oriental Weekly.

"The central government hopes to help grassroots departments to cope with financial deficiency," said Li, "but this preferential policy is short of effective supervision and some departments and individuals use it to enrich their own purses."

Li warned that an excessive amount of fines will also make people doubt the solemnity of the law.

"Law enforcement departments commercializing fines and increasing their income through fines will give people the wrong impression that as long as you have money, you can violate laws and regulations," Li stressed.

He suggested that a new financial system should be established in which all government revenues should be controlled by the state treasury and cannot be refunded to individuals at will.

Li was echoed by Du Liyuan, a lawyer in Beijing, who said, "Administrative fines and charges must be based on laws and regulations and all incomes of local government departments should be turned over to state treasury."