An audit report published yesterday found that about 7.1 billion
yuan (US$900 million) of the country's 2 trillion yuan (US$253
billion) social security fund had been misappropriated.
According to the National Audit Office, the funds were siphoned
off for "overseas investment, commercial loans to companies,
construction of government buildings and other purposes."
Of the total, 2.3 billion yuan (US$291 million) was stolen
before 1999 and 4.8 billion yuan (US$607 million) after that, said
the report.
"The social security funds, except for sums paid to
beneficiaries, must be deposited in banks or used to purchase State
treasury bonds," said the report.
The agency's investigation, which started in September, audited
pension, unemployment and health insurance funds in provinces
across the country, and discovered corruption and irregular
management.
At a health insurance fund management center in the Ningxia Hui
Autonomous Region, the director and the finance chief transferred
31.9 million yuan (US$4 million) of medical insurance premiums to
bank accounts of friends and relatives.
China provided pensions to 43.67 million retirees last year and
granted living subsidies to 3.62 million laid-off people.
(China Daily November 24, 2006)