Local authorities in the Hechuan district of Chongqing municipality demoted two officials who stand accused of granting inappropriate subsidies.

The officials, both from the Caojie Street office in Hechuan district, are accused of giving other officials in the district 1,100 yuan ($170) each as a reward for their help in fighting a forest fire that broke out in the district on April 2 and 3, according to a report by the newspaper Worker's Daily.

The decision to issue subsidies in that manner violated national regulations, according to Hechuan district's Party discipline committee. As a result of the accusations, Chen Jiulin, the former Party chief of the Caojie Street office, and Hu Ping, the former director of the street office, were demoted by one rank and now have deputy roles in the district.

Despite the demotions, both officials will maintain their former duties, the Worker's Daily reported.

Chen declined to comment about the allegations made against him.

The case was first brought to public intention by an Internet posting at tianya.cn, a national Internet forum.

The author of the posting, who withheld his identity, said officials at the Caojie Street office "were only concerned about issuing rewards rather than trying to learn lessons from the fire."

The writer also said the street issued 200,000 yuan in the form of subsidies and of reimbursements of transportation and dining expenses to the officials who had helped to fight fire.

In places under the Caojie Street office's jurisdiction, the forest fire damaged more than 20 hectares of forest and grassland.