Central govt calls for redressing financial malfeasance

The central government has ordered its departments, private businesses and other institutions to redress their financial malfeasance in reaction to a recent state audit report that revealed that billions of yuan was embezzled or misappropriated last year.

At a State Council meeting chaired by Premier Wen Jiabao in Beijing on July 26, central government departments, businesses and other institutions were ordered to follow the suggestions of the National Audit Office and earnestly address financial irregularities.

The 2004 state audit report publicly disclosed by the office in June uncovered 9.06 billion yuan (1.1 billion US dollars) and 14.5 billion yuan (1.79 billion US dollars) in funds were misappropriated by central government departments and top state companies, generating an "audit storm" much like after its 2003 report.

It openly criticized governmental departments, such as the State General Administration of Sport, the Ministry of Water Resources and the National Tourism Administration, as well as hospitals, universities and some major state-owned enterprises for improper budget use.

A statement from the meeting also commanded business managers, institutions in charge of businesses to closely supervise their operations.

Suspected financial crimes are to be investigated.

Institutions are required to report on their rectification processes in November and the State Council will present a special report to the National People's Congress by the year's end.

Source: Xinhua