National Audit Uncovered Mismanagement and Misuse of Funds

On June 25, 2014, China’s National Audit Office announced the findings of the central government’s audit of 38 departments regarding the implementation of Fiscal Year 2013 budgets and related expenditures. The National Audit Office found that, due to improper management, the State’s National Social Security Fund incurred losses of 17.5 billion yuan (approximately US$2.84 billion). The central bank, the People’s Bank, spent 210 million yuan (approximately US$34.13 million) in unauthorized awards to its employees. The audit also uncovered that from 2009 to 2012, without authorization, the National Statistics Bureau “over hired” 8,081 employees and incurred unauthorized expenditures of 239.4 million yuan (approximately US$38.91 million).