Mis­man­age­ment causes loses at wealth fund

China Daily (Canada) - - NEWSCAPSULE -

Man­age­ment ir­reg­u­lar­i­ties at China In­vest­ment Corp (CIC), the na­tion’s $575 bil­lion sov­er­eign wealth fund, led to over­seas in­vest­ment losses that could widen, the Na­tional Au­dit Of­fice said.

The Na­tional Au­dit Of­fice con­ducted an au­dit on CIC last year and iden­ti­fied prob­lems such as dere­lic­tion of duty, in­ad­e­quate due dili­gence and post-in­vest­ment man­age­ment in 12 over­seas in­vest­ments made by CIC be­tween 2008 and 2013. Six of the in­vest­ments were un­prof­itable, four of them had un­re­al­ized losses, and two may po­ten­tially lose money, it said.

Au­di­tors also found ir­reg­u­lar­i­ties at CIC’s do­mes­tic units and weak­nesses in fi­nan­cial man­age­ment.

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