A branch of the Industrial & Commercial Bank of China (ICBC), the biggest bank in China, in quake-hit Mianyang city bought 56 pairs of Nike shoes for its workers, the audit office said in a statement posted on its website.

The branch used 28,500 yuan (S$5,700) to buy the shoes at the end of May, and faked the receipts to say the bank had bought raincoats, rubber boots and umbrellas with the money, the report said.

'After the audit investigation revealed this problem, the bank returned the 'special earthquake funds' that were inappropriately used,' the report said.

Another investigation by the audit office revealed that in some areas, text messages about the quake were sent en masse and were suspected of cheating mobile phone users into donating money into bank accounts, the report said.

'According to our investigation, there are some people who already put earthquake donations into the fund-raising accounts,' the report said.

Those accounts had been frozen, according to the audit office, which did not reveal how much money was involved.

Misappropriation of funds allocated to help in the wake of the 8-magnitude earthquake - which has killed nearly 70,000 and left another 17,500 missing - is of huge concern in China.

President Hu Jintao has repeatedly warned that corruption is one of the biggest threats to the legitimacy of the ruling Communist Party.

More than US$6 billion (S$8.2 billion) in aid from home and abroad has been donated for quake relief, and the government has insisted it is doing all it can to ensure the money is spent in the correct manner.

AGENCE FRANCE-PRESSE