Auction of govt vehicles deemed proper

A disciplinary probe into an auction of government vehicles in Henan province found no evidence of misconduct, People's Daily reported on Monday.

The sale, held at the end of June, sparked concern among Web users, with many suggesting that Zhongmou county offloaded the vehicles too cheaply.

However, an official identified only as Yuan with Henan's industry and commerce administration told People's Daily that after a preliminary investigation the auction had been deemed lawful and dismissed reports to the contrary as rumor.

Zhongmou's auction in June resulted in 43 used government cars being sold for a total of 390,110 yuan ($61,000).

The sale sparked heated debate as some people questioned why the cars were sold for less than market prices.

Media later reported that the auction's appraisal agency and auction house were owned by the same company, which increased Web users' suspicions.

Shi Yongtao, an official at the county's discipline inspection commission, conceded that it was a mistake for the government not to have discovered that fact, but no evidence was found to prove that the owner stepped into the auction process.

The two appraisers, Lin Dong and Wang Xiangqian, told People's Daily that as some of the cars were about to be scrapped, they were evaluated and sold at fair prices.

"The cars were not overly devalued as people thought," Lin was quoted as saying.

The auction house has released information about the types of cars, their conditions, and the sale prices to the public, as well as a video clip showing the auction process.

Zhang Yongxian, the county's director of the discipline inspection commission, said the government welcomes public scrutiny and will severely publish officials who break the law.