Auditors sharpen eyes on state spending plan

Source: Xinhua/Shanghai Daily  |   2008-12-30  |     NEWSPAPER EDITION

CHINA will step up audits of new projects, state-owned enterprises and financial institutions next year to make sure the government's macro-control measures are effective in battling the economic downturn and preventing social unrest, the country's chief auditor said yesterday in Beijing.

"Our focus next year is on overseeing the implementation of macro-control measures and guaranteeing their timeliness and effectiveness," Liu Jiayi, head of the National Audit Office, told an agency conference.

Auditors will target potential risks in government finance and "watch for possibilities that economic woes might lead to social unrest or even political problems," Liu said.

Money newly allocated to be spent late this year, part of a 4-trillion-yuan (US$580 billion) stimulus plan, will receive special attention in 2009, he said.

The government added 100 billion yuan to fourth-quarter spending to spur domestic economic growth.

Audit agencies will ensure investment in the new projects is properly used and will focus on finding any extravagance, corruption or use of the money in "smokestack" projects, according to the chief auditor.

Another focus in 2009 will be on overseas investment by state-owned companies to make sure such investment is safe.

The NAO examined the impact of the global financial crisis on Chinese lenders and the economy in the second half of this year, Liu said, without disclosing the results.

He pledged to continue checking the asset quality and performance of financial institutions and to help them improve risk control.

Liu also said that auditing authorities have recovered nearly 27 billion yuan in public funds that had been misused or embezzled by government officials.

Sixty-four officials and 226 people have been referred to judicial or disciplinary departments for wrongdoing, Liu said.

The office carried out a nationwide audit of more than 24,000 government officials from January to November along with an audit of four provincial governors and the former heads of 12 state-owned companies, Liu said.

The audit also targeted more than 104,000 units across the country and saved more than 56.9 billion yuan, Liu said.