Mismanagement causes loses at wealth fund
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.