posted on Mar, 27 2005 @ 11:21 PM
Chinese banks have been told by the countries bank regulator to increase measures to stop embezzlements and frauds on loans after the resignation of
the chairman of one of China's largest government banks amid scandals and reports of corruption. The losses have cost hundreds of million dollars of
lenders money due to frequent fraudulant cases and failues to detect employee fraud.
"Leading management staff and those who are held responsible must be dealt with and punished," said the CBRC order, according to the official
Xinhua News Agency.
Xinhua said the order included 13 instructions for banks to tighten management of their financial risks but gave no details.
Please visit the link provided for the complete story.
The US administration sent a Chinese national back to China last April amid controversy after his alledged involvment over theft of 485 million
dollars and an employee of Bank of China was arrested recently in China after being a fugitive accused of embezzling 6 million dollars from his
China would not be impressed at part of their system breaking down in front of international eyes. Employee theft is a huge issue worldwide but it
will be looked at within the country with different eyes when the theft from your employer is the very government you live under. China is proud of
her communism and closed regime and this warning to the banks to tighten up their security is not one the banks will take lightly and there could be
more heads to fall over this issue over the next few weeks.
[edit on 27-3-2005 by Mayet]