A local government in China faked signatures on nearly 2,000 traffic tickets amid a $10 trillion debt time bomb

Heavy traffic on the six-lane road in the city center near the exit to the Sanyuan Bridge in Beijing China.

Soeren Stache/picture alliance/Getty Images

• A local government in China faked signatures and fingerprints in nearly 2,000 traffic tickets last year.
• Provincial authorities launched a probe following a complaint from a truck driver who was fined $70.
• Cash-strapped local governments in China have been handing out random fines to boost their finances.

A local government in northern China was busted for faking signatures on nearly 2,000 traffic tickets, China's State Council, the country's cabinet, announced on January 19.

Hebei provincial authorities launched a probe into She County after a truck driver, identified by his last name Xu, filed a complaint. She County is in Hebei province.

Xu said he was fined 500 Chinese yuan, or $70.40, on the spot after a cargo of coal he was carrying spilled over, per the Council's announcement. However, he said he didn't receive official notice of his offense, and he said he didn't sign or provide his fingerprints for any documentation. It's unclear when the incident took place.

The probe found that She County's transport bureau forged Xu's signature.

But that's not all. In total, the bureau faked signatures and fingerprints on 1,964 of the 2,099 traffic tickets it issued last year, according to the State Council statement.

Authorities have suspended four law enforcement officers and punished five senior bureau officials for the forgeries, the State Council said in its statement. It didn't state what the punishment was.

China's State Council did not state the motivations behind She County's forgery.

State media CCTV linked the case to the use of excessive and arbitrary fines to generate revenue in some regions — a practice that is almost an "open secret," it said.

In June, a restaurant in Shanghai was fined 5,000 Chinese yuan, or $704, for serving shredded cucumber without a license, Bloomberg reported at the time.

Beijing has warned that it is cracking down on such practices to generate revenue.

The incidents come as China's cash-strapped local governments have nearly nearly $10 trillion in so-called local government financing vehicle, or LGFV, debt.

China's local governments have been struggling to repay their LGFV debt. It's another risk to China's economy, which has been struggling with a property crisis, deflationary pressure, and a demographic crisis.

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