The State-owned Assets Supervision and Administration Commission
(
SASAC) on
Friday released two regulations to examine and audit the
operational results of the State-owned enterprises (SOEs) and the
performance of the SOE chiefs.
The regulations, further clarifying the liabilities of SOE
executives in management of the State assets, are aimed to look
after to the maintenance and appreciation of these assets and the
accuracy of relevant statistics.
They introduce the method of calculation for the evaluation of
the State asset operation and enhance relevant responsibility of
the SOE executives, auditors and supervisors in the government
agencies.
Both regulations were effective from August 30. One is the
temporary regulation on the examination of the results of the
State-owned assets maintenance and appreciation in enterprises.
It lists the major indices used for the assessment of the State
assets operational results and sets the criteria for their
performance.
Top executives of enterprises that fail to meet the target for
the State assets management will have their salary cut according to
relevant standards.
Those who provide fake or incomplete information in the
corporate results will be punished. Accounting firms will also take
relevant liabilities.
Staff of the State asset supervisory bodies, including SASAC and
local watchdogs, will also be punished if they cover up for the
enterprises or make frauds during the result evaluation process and
shoulder criminal liabilities if they commit crime.
The other regulation released on Friday watches over the
auditing of top executives of the central SOEs and their economic
liabilities during their term of service.
It is said that SASAC will organize regular auditing on the
runners of the enterprises it supervises. Items to be audited
include the truthfulness of the corporate results, the change in
asset quality, management efficiency and the economic liabilities
of the executives in major management decisions.
Those found of irregularities or illegal activities during the
management of the enterprises will take relevant liabilities
according to existing laws and regulations.
SASAC will authorize the State auditing authorities or auditing
firms to conduct the work. And the regulation lists the criteria
for the agencies, including sufficient asset scale, expertise and a
clean record of operation for the past three years.
(China Daily September 11, 2004)