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Over $6.2 billion irregularities at China's wealth fund, banks: auditor

Published on Jun 19, 2014 7:20 PM
 
Irregularities amounting to more than US$5 billion (S$6.24 billion) have been found at the China Investment Corporation (CIC), Bank of China and Agricultural Development Bank of China, according to the National Audit Office, the communist country's state auditor. -- PHOTO: REUTERS

BEIJING (AFP) - Irregularities amounting to more than US$5 billion (S$6.24 billion) have been found at China's sovereign wealth fund and two large state-owned banks, according to the state auditor, offering a glimpse into the opaque management of government-controlled firms.

China Investment Corporation (CIC), Bank of China and Agricultural Development Bank of China violated regulations in areas including asset selling, loan issuance and fraudulent invoicing, according to the National Audit Office (NAO).

"The audit found CIC breached rules on overseas investment and risk control, domestic subsidiaries operation and financial management," the NAO said in a statement.

The fund's "financial management was relatively weak", it said in the document, published late on Wednesday.

 
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