The People's Liberation Army (PLA) yesterday claimed to have saved 1.8 billion yuan (US$218 million) in the past three and a half years as increased transparency granted outsiders a rare glimpse of the workings of the Chinese military.

PLA General Logistics Department sources said the army had spent more than 12 billion yuan (US$1.46 billion) on basic supplies last year, a 64 percent increase over 2003.

Reform started in November 2001, with procurement transparency aimed at making the army run more efficiently, the PLA Daily, the mouthpiece of the Chinese army, reported yesterday.

Rules to better regulate material procurement have also been introduced, the report quoted an unidentified officer from the Quartermaster, Materials and Petro-Oil and Lubricants Department of the General Logistics Department as saying. The rules also cover the public bidding process for procurement.

According to General Logistics Department regulations, all PLA material procurement information, except that involving military and commercial secrets, must be made public.

"No unit or individual is allowed to prevent or restrict qualified material suppliers from taking part in procurement activities," an earlier report from the Beijing-based Legal Daily said.

The unidentified PLA officer said the procurement system has computer-based records to increase transparency.

A procurement network is being established by the PLA General Logistics Department that will allow the military to publish plans, inquire about relevant information and invite public bids, the PLA Daily reported.

The money saved over the past three and a half years has relieved financial strain on the PLA and transparency in the work can help stop corruption in the army, the officer said. According to him, the PLA is now working with the National People's Congress, China's top legislature, to draft a military procurement law.

(China Daily July 19, 2005)