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| Irregularities in Agricultural Bank Involve 51.6 Bln Yuan: Auditor |
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An annual check on the Agricultural Bank of China, one of the "big four" state banks in China, had uncovered irregularities involving 51.6 billion yuan (US$6.45 billion) in its business in 2004, the National Audit Office announced Monday. According to the latest audit report, "irregulate operation" was cited as a "prominent problem" for the bank. Irregularities in deposit business involved 14.27 billion yuan, with another 27.62 billion yuan on granting loans, while the fraudulous bill issuance involved 9.72 billion yuan, the report said. The deposit frauds included altering deposit categories, embezzling clients' savings, opening undue accounts, the report said, adding that violations in granting loans mainly existed in fields like auto loans and land reservation loans, according to the report. "Some agricultural bank branches turned a blind eye on bill issuance, causing numerous frauds," the report said. Auditors also found 157 people suspicious for economic crimes in 57 fraud cases that involved 8.68 billion yuan. Some of these cases were conspiracy set up by bank employees and outsiders, the report said. Loans granting to universities were categorized as a "high risk business" in the report, as it said school's limited sources of funding can hardly to pay back rising school loans. The auditors launched the check on agricultural bank in 2005 over its 21 local branches in places such as Beijing, Tianjin and Shanghai. Among China's "Big Four", Agricultural Bank is the only one left open to bank reforms. The three others have either converted to joint-stock companies or sold shares to public investors. (Xinhua News Agency, June 26, 2006) |
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