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Auditor outlines State-owned assets problems

(chinadaily.com.cn)
Updated: 2007-05-11 17:08

Li Jinhua, China's top auditor, outlined five problems that drain stated-owned assets, according to a report from Chinanews.com.

He says some Stated-owned enterprises are in collusion with other companies and sell stated-owned assets without going through relevant legal procedures.

Another issue is that some businesses take their high-quality stated-owned assets and transfer them into auxiliary companies, in which the executives of the major business units have or control the stakes.

The third problem outlined in the report says leaders of some highly-profitable stated-owned enterprises give profitable businesses to their friends and relatives through subcontracts.

Li adds some businesses unfairly distribute profits or waste money through extravagant spending.

And finally, there is a drain of some non-economical stated-owned assets, including money losses in construction of office buildings of the government and other institutional units and their training bases.