Audit watchdog pulls up state firms
By Richard Fu and Feng Jianmin |
May 21, 2011, Saturday
|
Print Edition
Print Edition
China's audit watchdog has faulted several state-owned enterprises of falsifying their financial statements for the 2009 fiscal year.
The National Audit Office found assets worth about 1.9 billion yuan (US$292.4 million) and profits of 2.63 billion yuan were overstated during inspection of 17 central government-owned enterprises, while 3.43 billion yuan in liabilities were falsely included.
Seven companies, including China National Nuclear Corp, China Cosco Holdings and China Southern Power Grid Co, gave their staff bonus and allowances against the salary regulations, the audit agency said yesterday.
China National Nuclear Corp overstated profit by 1.107 billion yuan in 2009, which accounted for 19 percent of its total profit, the agency said in a report. The company also illegally paid out a total of 150 million yuan in housing and health-care expenses for its employees from 2007 to 2009.
China Southern Power Grid Co overstated earnings by 910 million yuan, or 26 percent. The company reportedly also evaded paying 330 million yuan in income tax for its employees from 2003 to 2009.
Telecom operator China United Network Communications, parent of publicly traded China Unicom, understated assets worth 38.1 million yuan with improper accounting procedures and inadequacies in transactions in 2009.
China Unicom, the country's second-largest mobile operator, responded, saying that the improper practices have been rectified and the issues didn't affect its past operating results.
The audit agency said about 735 cases of irregularities, or about 94 percent of the problems uncovered, have been rectified by the end of March and 65 people were punished, but it didn't give details. The inspection was conducted last year.
The National Audit Office found assets worth about 1.9 billion yuan (US$292.4 million) and profits of 2.63 billion yuan were overstated during inspection of 17 central government-owned enterprises, while 3.43 billion yuan in liabilities were falsely included.
Seven companies, including China National Nuclear Corp, China Cosco Holdings and China Southern Power Grid Co, gave their staff bonus and allowances against the salary regulations, the audit agency said yesterday.
China National Nuclear Corp overstated profit by 1.107 billion yuan in 2009, which accounted for 19 percent of its total profit, the agency said in a report. The company also illegally paid out a total of 150 million yuan in housing and health-care expenses for its employees from 2007 to 2009.
China Southern Power Grid Co overstated earnings by 910 million yuan, or 26 percent. The company reportedly also evaded paying 330 million yuan in income tax for its employees from 2003 to 2009.
Telecom operator China United Network Communications, parent of publicly traded China Unicom, understated assets worth 38.1 million yuan with improper accounting procedures and inadequacies in transactions in 2009.
China Unicom, the country's second-largest mobile operator, responded, saying that the improper practices have been rectified and the issues didn't affect its past operating results.
The audit agency said about 735 cases of irregularities, or about 94 percent of the problems uncovered, have been rectified by the end of March and 65 people were punished, but it didn't give details. The inspection was conducted last year.
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