China will further enhance the management and investment operation
of its social security fund by means of adopting international
standards and experience, Liu Yongfu, vice-minister of labor and
social security, said Monday at a three-day seminar on social
security fund supervision in Shanghai.
As
an important component part of the social security system, the fund
is facing a series of problems and potential risks as it lacks
efficient supervision and a management mechanism, said the
official.
Last year, authorities uncovered quite a number of cases in which
the social security fund had been embezzled or seized illegally,
and recovered more than 16 billion yuan (about 1.93 billion U.S.
dollars).
Statistics show that the income and expenses of the national social
security fund reached over 730 billion yuan (88 billion
U.S.dollars) with a surplus of 300 billion yuan (36 billion U.S.
dollars) in 2002.
In
order to realize effective management of the fund, Liu said,
authorities will focus on setting up separate accounts,
standardizing operation and avoiding cheating.
(Xinhua News Agency January 21, 2003)