Auditor uncovers wrongdoing in the nation's social security funds
By Feng Jianmin |
August 3, 2012, Friday
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Print Edition
Print Edition
CHINA'S top auditor has ferreted out irregularities involving tens of billions of yuan in social securities funds last year, the National Audit Office said in a report yesterday.
The auditor said the national social security fund is generally safe and has benefited the country, but the system is still young with problems like weak supportive measures, a lack of experienced social security professionals and insufficient management.
Social security authorities have taken away benefits from 1.07 million unqualified individuals and added 1.05 million who were previously not covered, the report said.
Among the irregularities, 1.74 billion yuan was used for purposes other than social welfare.
This includes paying fund employees, covering local government budgets, building homes, offices and gyms, and car purchases.
Another 1.85 billion yuan was handed out to unqualified individuals while some organizations and individuals bilked the system, the report said.
A total of 3.2 million unqualified applicants nationwide were receiving a minimum living allowance that totaled 1.38 billion yuan.
The auditor also checked 4,207 hospitals, among which 313 were found to have embezzled 287 million yuan from the medical insurance fund while others overcharged patients a combined 194 million yuan.
Four medicine dealers were found issuing false value-added tax invoices with a combined value of 676 million yuan, making illegal income by pushing up the costs of medicine, it said.
The auditor has urged local governments to deal with 132 illegal cases involving more than 300 individuals.
Meanwhile, the auditor discovered a total of 42.7 billion yuan from the social security fund was not in the designated bank account, and a 56.5 billion yuan fiscal subsidy was not allocated in time.
The audit office said incoming funds totaled 2.84 trillion yuan last year while expenditures amounted to 2.11 trillion yuan.
As of the end of 2011, the social security fund had a balance of 3.11 trillion yuan.
The auditor said the national social security fund is generally safe and has benefited the country, but the system is still young with problems like weak supportive measures, a lack of experienced social security professionals and insufficient management.
Social security authorities have taken away benefits from 1.07 million unqualified individuals and added 1.05 million who were previously not covered, the report said.
Among the irregularities, 1.74 billion yuan was used for purposes other than social welfare.
This includes paying fund employees, covering local government budgets, building homes, offices and gyms, and car purchases.
Another 1.85 billion yuan was handed out to unqualified individuals while some organizations and individuals bilked the system, the report said.
A total of 3.2 million unqualified applicants nationwide were receiving a minimum living allowance that totaled 1.38 billion yuan.
The auditor also checked 4,207 hospitals, among which 313 were found to have embezzled 287 million yuan from the medical insurance fund while others overcharged patients a combined 194 million yuan.
Four medicine dealers were found issuing false value-added tax invoices with a combined value of 676 million yuan, making illegal income by pushing up the costs of medicine, it said.
The auditor has urged local governments to deal with 132 illegal cases involving more than 300 individuals.
Meanwhile, the auditor discovered a total of 42.7 billion yuan from the social security fund was not in the designated bank account, and a 56.5 billion yuan fiscal subsidy was not allocated in time.
The audit office said incoming funds totaled 2.84 trillion yuan last year while expenditures amounted to 2.11 trillion yuan.
As of the end of 2011, the social security fund had a balance of 3.11 trillion yuan.
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