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China to Take Good Care of Social Insurance Fund
Northeast China's Liaoning Province, home to one-tenth of the country's large State-owned enterprises (SOEs), vowed to establish a unified, standard and improved social insurance network by legal means.
In a circular to local courts, the Liaoning Provincial Higher People's Court urged them to improve the trials of social insurance-related cases and strictly punish those law-breakers.
The Chinese government is working out an independent social insurance system which is expected to cover medicare expenses, pension, and housing of the employees of the State-owned businesses, sources said.
A company of social insurance in Fushun City in the province used social insurance fund as a gurantee fund for its bank loans.
The Provincial Higher People's Court ruled that this was illegal and declared the contract of gurantee invalid, and the bank was not allowed to transfer social insurance fund to pay back the company's due loans.
This was only the third case of its kind and much remains to be done in this regard, court sources said.
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