A local government in Liaoning province recently bought iTouch 4 at an exorbitant rate. Netizens have alleged that the local officials paid 10 times more than the price of normal USB flash drives, says an article in Beijing News. Excerpts:

The local government of Fushun city bought iTouch 4 for 2,300 yuan each, nearly 10 times the price of ordinary USB flash drives. Many people have blamed local officials of misusing the finance budget for their own interests.

According to a survey, the administrative expense in China increased 87 times from 1978 to 2003. Purchases like those in Fushun may be one of the reasons behind such rapid increase in expenses.

Corruption in government procurement takes place in the name and framework of "open purchase". The purpose of open purchase is to invite public supervision, which means the government should judge the pros and cons of a product and its market value before buying it and making the deal public.

In Fushun's case, the local officials may consider the iTouch 4 a fair and reasonable purchase. They may regard it as an "open purchase" without accepting public supervision. This is similar to some local governments' confusing financial report. Local governments have to realize that the public has become more responsible and sensitive now. According to the government procurement law, those who arbitrarily increase purchase standards are liable to be punished.

Making a purchase public does not necessarily mean a department is practicing openness. The purchase also has to be reasonable and pass the supervision of the public.

(China Daily 12/23/2010 page9)