The State-owned Assets Supervision and Administration Commission (SASAC) has announced the results of a review of major centrally administrated State-owned enterprises (SOEs), disclosing problems and risks.
The SASAC conducted on-site inspections of 5,684 central SOEs and their subsidiaries and submitted 1,362 reports to the State Council, China's cabinet.
The SASAC found 12,226 problems and risks at these SOEs in the past three years, the commission said in a report on its website on Wednesday.
The risks include disciplinary violations, defective internal controls and encroachment on State-owned equity, according to the report.
Some enterprises violated regulations by carrying out bulk commodity trade finance, providing tender guarantees and offering extra salaries and bonuses, said the commission.
Defective internal control issues involve bidding and tendering systems that are not being strictly managed, flawed internal supervision and key approval process reduced to mere formalities.
Impairment of State-owned equity was shown in blind "going global" moves, improper management of offshore assets and transferring profits to other independent companies.
The State Council told the SASAC to play a more important role in urging SOEs to preserve or maintain the value of State-owned capital, prevent the loss of that capital and improve SOEs quality and efficiency, the SASAC said.
The commission will improve the supervision mechanism and strengthen management to boost the sound development of central SOEs.
