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Authorities Plan to Improve Social Security Auditing
Chinese authorities plan to improve auditing of the social security system to close loopholes in fund accounts and strengthen its pension system reform this year, according to report of China Daily on June 12.
Li Jinhua, general director of China National Audit Office (CNAO), said on Wednesday that China will investigate 71 enterprises which have seriously delayed payments to pension insurance accounts. It will also investigate pension fund misuse in seven provinces.
The office will also forecast a balance of payments for the enterprise pension insurance fund and review non-State-owned enterprises' pension fund collections.
Premier Zhu Rongji said recently that China will enhance supervision of the social insurance fund and make appropriate investments to maintain and increase its value.
The parallel construction of a sound legal framework and improvement in collaboration among government institutions will also be accelerated.
Legislators are wrapping up the drafting of a social insurance law. A regulation on pension insurance has already been submitted to the State Council for final approval, the CNAO source said.
The moves are being taken to end problems such as irregular management, inefficient fund collection and poor payments that have haunted the sector for years, experts said.
Sources from the Labour and Social Security Ministry said more than 100 billion yuan (US$12 billion) was owed to the individual account by the end of 1999.
An expansion of power is also essential for the independent institution so it can ensure the implementation of audit suggestions and assess punishments when necessary, analysts said.
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