The National Audit Office (NAO) has remained in the spotlight
for weeks since its report to the Standing Committee of the
National People's Congress was released late last month.
The latest move by the NAO is to begin an inquiry into the four
State-owned financial asset management companies Huarong, Great
Wall, Orient and Cinda.
Two days before that, NAO started auditing the management of
nine State-owned companies.
The high-profile transfer of NAO's focus from government
institutions to State-owned enterprises underscores a significant
new dimension of its job description.
Under the current economic system, State-owned enterprises,
especially the large ones, are managed in a way similar to
government departments. They undertake projects that are less
profitable or even unprofitable but which offer a valuable
contribution to the life of common people.
But more importantly, the managers of State-owned enterprises
are handling massive amounts of State assets.
This property was created and has accumulated as a result of the
people's work in last several decades.
In this sense, whether State-owned enterprises are properly
managed and whether State assets have maintained their value are
questions no less important than those of inquiring into the
conduct of government branches.
As a designated watchdog of the central government, NAO is the
proper agency to answer to these questions.
In addition, NAO involved State-owned enterprises could solve
another problem that has concerned many for a long time: the
"State-owned" firms do not have a substantial "owner" to report
to.
Put under the supervision of NAO, the State-owned enterprises
may feel the pressure of a real boss and the need for more
self-discipline.
Noticeably, the NAO started its scrutiny of the State-owned
companies at the invitation of the State-owned Assets Supervision
and Administration Commission of the State Council and the
Organization Department of CPC Central Committee.
(China Daily July 14, 2004)