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Penance Follows 'Auditing Storm'

In response to Tuesday's government auditing revelations, several ministries and companies promised yesterday to improve their financial management.

The Ministry of Health said it had ordered hospitals named and shamed in Auditor-General Li Jinhua's report to follow his recommendations for improvements, according to a report by China Central Television (CCTV).

According to the auditor's report, ten hospitals in Beijing overcharged patients between August of 2003 and August of 2004, running up excess fees totalling 11.27 million yuan (US$1.36 million).

Attempting to explain why records showed he had kept a total of 1.385 billion yuan (US$167.5 million), Wang Aiguo, vice-director of the planning department of the Ministry of Water Resources, was quoted by CCTV as saying that some of the projects the money was intended for are awaiting approval and some others are undergoing further planning.

Safely stored in a bank account, none of the money has been misused, he said.

President of China Great Wall Asset Management Corp, Wang Xingyi, said the company had already made improvements and would try to strengthen internal management.

Xinhua said China Cinda Asset Management Corp had already acted to punished 24 people responsible for irregularities.

Li's report was announced to the Standing Committee of the National People's Congress on Tuesday.

(China Daily June 30, 2005)

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