Audit Department: Internal Profit Making Become Six Central Enterprises Giant Financial Malpractice

The audit results of 6 central enterprises in 2008 last year released by the Audit Commission showed that the "internal profit making" has become one of the main financial drawbacks of the central enterprises being audited.

This is the first time that the Audit Commission has announced the audit results of the enterprise's financial revenues and expenditures in recent years. These 6 enterprises include China Airlines, China Eastern Airlines, China Southern Airlines and three major airlines, Huarun, Huadian and Shenhua three energy giants. 4 of them were giant central enterprises with assets over 100 billion in 2008.

The audit found that China Airlines Group paid 276 million yuan of enterprise annuity in the cost cost without approval.

From 2004 to 2008, 7 enterprises belonging to China Eastern Airlines Group received 103 million yuan income directly for bonus payments, subsidies and business entertainment expenses.

From 2002 to July 2009, the enterprises of the China Southern Airlines Group transferred the total revenue of freight service, maintenance and maintenance to 105 million units to three production units or trade unions, which has been used to distribute employee bonus, subsidy and other expenses 68 million 218 thousand and 500 yuan.

By the end of 2008, Huarun group's Huarun Shen Guo Trust Limited had not included part of its investment and financial products earnings into accounting books, resulting in less than 18 million 769 thousand and 100 yuan of assets and undistributed profits respectively.

From 2007 to 2008, the 15 power generation companies of Huadian Group, in the sale of fly ash (slag), made profits to their "three production" or employee stock ownership enterprises, involving an amount of 259 million yuan.

From 2006 to 2008, Shenhua Group's Wuhai energy limited liability company and other 2 enterprises misappropriated 49 million 240 thousand and 700 yuan for coal mine maintenance cost, which was used to purchase non production vehicles and office equipment.

The audit notice said that the above problems have been rectified separately.

The Audit Office pointed out: "because of the long operation chain and the lack of relevant management, there are more problems in some subordinate units of the central enterprises."

In an interview with the first financial daily, the state owned assets supervision and Administration Commission of the State Council said that the SASAC attaches great importance to organizing the central enterprises conscientiously to implement the audit rectification opinions, and takes this as an opportunity to draw inferences and draw inferences to promote the level of financial management and management of enterprises.

People familiar with the matter told reporters that other central enterprises will be accepted by the Audit Commission in the future.