In June 2014 the CNAO publishes the reports on audits of balance sheets and income statements of 11 State-owned Enterprises for the year 2012 to the public.
These 11 SOEs are China Tobacco, China Nuclear Engineering, China Aerospace Science and Technology, China Aerospace Science & Industry, China Shipbuilding, China South Industries, China National Petroleum, Datang, China Shipping, China Resources and China Metallurgical.
Improper feasibility analyses in investment, irregularities in its accounting and internal management are found during the audits, some of the irregularities are “highly problematic”. A total of 190 people have been punished for policy breaches or mismanagement. Auditors have also tracked several leads on illegal activities and transferred them to related authorities, the results of the cases will be released after investigation.
The CNAO said the enterprises have made improvements and retrieved or avoided losses amounting to 3.3 billion yuan by the end of May and new mechanisms would both prevent and punish offences.