Premier Zhu Urges Auditors to Strike Hard against Corruption

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Last updated at: (Beijing Time) Wednesday, January 16, 2002

Premier Zhu Urges Auditors to Strike Hard against Corruption

Premier Zhu Rongji has asked audit departments to seek out major fraudulent auditing and audit irregularities to strike down on corruption. The premier noted that frauds and irregularities uncovered by the auditors are serious both in terms of the sums of the money involved and their nature.
He asked the audit department to supervise managers' decision- making in large companies through the audit regulations.

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Irregularities Serious in Sum & Nature

State Councilor Wang Zhongyu on Tuesday delivered the premier's instructions to a national audit meeting, which stressed the importance of auditors' work in the fight against white collar crime.

The premier noted that frauds and irregularities uncovered by the auditors are serious both in terms of the sums of the money involved and their nature, which further points to the importance of improving the standard of auditing.

Investigations on Typical Cases

Zhu pointed out that audit investigations should be comprehensive and give prominence to typical cases.

He said that some state-owned businesses send out false information and falsify accounts. Such cases are destructive to the development of China's socialist market economy.

It is the audit departments' responsibility to punish anyone who falsifies business accounts and to help establish a socialist credit system, Zhu added.

Special Persons for Major Crimes

He asked the audit department to supervise managers' decision- making in large companies through the audit regulations.

In dealing with major crimes, Zhu said, the audit departments should assign special people to take charge of the auditing and to follow through until the cases are settled.

Premier Calls for Thorough Investigation into Audit Cases

Premier Zhu Rongji recently urged audit officials to "deeply" and "thoroughly" investigate cases involving serious financial infringement. Major efforts should be given to key auditing problem, and those held responsible in the cases should be punished by the law, Zhu stressed.

Large Share of Embezzled Public Funds Retrieved

A total of 19.2 billion yuan (some US$2.3 billion) of public funds, which had been embezzled, were retrieved by the Chinese audit sector in 2000.

Focusing on the examinations of key sectors, departments and special funds, the Chinese audit sector audited more than 100,000 public organizations between January and November in 2000.

China Sees Less Violation of Fiscal Rules

China greatly reduced the number of major cases involving violation of laws and regulations in the fiscal and financial fields in 2000.

The National Audit Office discovered 5.6 billion yuan of funds involved in illicit activities after it audited 63 government departments and institutions for the year 2000.

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