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Audit finds malpractice in local gov't debt financing

Xinhua, June 29, 2016 Adjust font size:

Several local governments in China have not used funds raised through bond issues effectively, the country's top auditor said Wednesday.

Liu Jiayi, head of the National Audit Office (NAO), briefed lawmakers on the audit of central government budget execution in 2015. Eleven provincial-level regions, 10 city-level regions and 21 counties were audited.

For example, Liu said, the governments Beijing, Guangdong, Heilongjiang, Hunan, Inner Mongolia and Shandong had not used 13.8 billion yuan (2.1 billion U.S. dollars) worth of bonds by the end of last year.

Governments of Henan, Hunan, Inner Mongolia, Shandong, Sichuan and Zhejiang borrowed money illegally, according to Liu.

Concerned agencies are studying how to improve debt management and those audited are correcting their mistakes, he added.

The audit report was submitted to the ongoing bi-monthly session of the National People's Congress (NPC) Standing Committee for deliberation. The session will end Saturday. Endi