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Audit in China Finds 67 Billion Yuan in Illicit Capital
The Epoch Times
The audited items targeted the person in charge of departmental financial forecasts and budget control in a given company or governmental unit. Budget control includes capital transactions, debts, and the amount of profits and losses over the course of the year.
According to the website of the National Audit Office of the People’s Republic of China (CNAO), during the Jan. 30 meeting, a report from Li Jinhua, Auditor General of CNAO, said the Industrial and Commercial Bank of China with its 21 branches and insurance company China Life were audited in 2003, and CNAO found some major problems. Some companies and individuals obtain loans under false pretenses in order to pay for houses and cars for personal use, and some local governments loan huge amounts of money beyond their repayment capability for the purpose of municipal administration construction.
The CNAO also organized officials from 16 provinces, 18 special offices and 2,000 professional auditors in China’s communities to do an audit on the former executives of the electricity company State Power. From this audit, CNAO discovered some problems in the company’s management. One major problem is that the recorded amount of profits and losses is fabricated. The potential loss for the company is huge.
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