China will tighten the control of social security fund this year
to ward off misappropriation, according to the Ministry of Labor
and Social Security.
Sources with the ministry said it will draft new regulations on
the management of social security fund, individual accounts for
employees of enterprises and investment activities of pension funds
in 2007.
The ministry will also make public regular reports on the
collection and utilization of the fund to subject themselves to the
scrutiny of the general public.
China is expected to rake in some 56.6 billion yuan in pension
fund this year. Premium revenue from medical and jobless insurance
will reach 183.5 and 35.3 billion yuan, respectively.
China has carried out five nationwide audits of social security
funds since 1998, revealing embezzlement in 16 of the 31 provinces
in 2004 and 1.7 billion yuan misappropriated in 2005.
The widespread of embezzlement has been attributed to inadequate
laws, lack of transparency and inadequate public supervision.
(Xinhua News Agency February 24, 2007)