China’s Audit Office Clamps Down on CSG for False Reporting

China Shipping Group has breached several financial regulations in its financial report for 2012, according to China’s National Audit Office report.

China's Audit Office Clamps Down on CSG for False Reporting

The report was based on the 2012 financial results of China Shipping Group and eight of its subsidiaries.

The breaches include false reporting of the company’s benefits and that of certain staff, poor management, costly travel claims, inadequate pricing of office rental to associated companies, bunker fuel purchasing, covering up of accidents and murky operations in certain ship chartering deals.

The violations also include lack of official paperwork for one of its shipbuilding projects. Namely, CSG had started construction at Jiangsu-based yard without securing first construction approvals.

What is more, CSG was also warned for disposing of 20 ships without obtaining international clearance beforehand.

“The audit commission has issued the audit report in accordance to the law. CSG is required to publicly clarify the findings of the report,” the Audit Office said in the report, adding the persons concerned are now suspected of infringing the law and further investigations by the authorities are underway.

World Maritime News Staff, June 24, 2014; Image: Wikimedia