Nearly 31 billion yuan ($4 billion) of social security funds was misused last
year, according to the National Audit Office (NAO).
misappropriation was uncovered by the NAO's nationwide audit, which looked at
social security funds as well as housing provident funds from 45 cities and the
implementation of budgets by social security fund councils.
In total the
audit covered more than 800 billion yuan ($103 billion) of funding, of which
30.8 billion yuan almost 4 percent was not properly accounted for, Yu Xiaoming,
deputy chief auditor, told the China Audit News yesterday.
Shanghai and the Tibet Autonomous Region were excluded from the audit, the
paper said without citing a reason.
Yu said that auditing social security
expenditure remained an important task.
This year local audit departments
will launch their own audits of social security funds.
The NAO will also
dispatch staff to audit money allotted for disaster alleviation in 13 provinces.
Special teams will also be sent to audit the funeral and interment industry in
three provinces because the NAO received complaints that some government
departments overcharge mourning relatives.
An NAO report published last
October said around 7.1 billion yuan ($916 million) of social security funds had
been misappropriated by 2005.
Speaking on the sidelines of the NPC
session on Tuesday, Liu Yongfu, vice-minister of labor and social security, said
the ministry is addressing the problem of misused funds.
reporting system, which demands that labor and social security bureaus at all
levels report any misappropriation or fraud involving the funds as soon as they
are detected, has been established, he said.
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