“Irregularities” of US$ 1.1 billion uncovered in Agriculture Bank of China
Is this a news at all? Not anymore. Wake me up next time when they discover “irregularities” of US$ +100 billion.
According to China Daily:
Irregularities involving 8.68 billion yuan (US$1.09 billion) were uncovered in the Agricultural Bank of China's (ABC) 2004 accounts, the National Audit Office said yesterday.
The 51 cases involved 157 bank officials, some of whom conspired with outsiders to embezzle the bank's funds, the audit office said in a report released on its website.
It cited as an example two ABC branches in Suining, a city in Southwest China's Sichuan Province. The branch chiefs colluded with securities brokers to defraud the bank of 118 million yuan (US$14.75 million) in loans, and lost more than 75 million yuan (US$9.38 million) in stock market speculation.
Irregularities were also found in the handling of deposits, bank bills and loans.
US$1.1 billion or US$6.45 billion?
http://www.chinadaily.com.cn/bizchina/2006-06/26/content_626089.htm
Posted by: ajit | June 27, 2006 at 01:52 AM
As I understand, 1.1 bilion is lost and 6.45 billion is trasactions that violate either banking laws or internal risk control rules. For example, according to the report, in one branch, they discoverd that most of the discounted bill lendings are supported by either fictitious trading contracts/documents or insufficient (or no) documents.
Posted by: R-Squared | June 28, 2006 at 09:09 PM