Beijing: China’s National Audit Office released an audit report for state-run shipping conglomerate Cosco Group yesterday in which it has uncovered substantial irregularities.
According to the report, Cosco Group’s total registered net profit from 2008 to 2013 was RMB129m ($20.7m) less than the actual amount achieved by the group. Several operational violations have also been found in subsidiaries of group, including Cosco Logistics and Cosco Dalian Shipyard, which resulted in huge losses for the group.
The report particularly noted that Cosco Group lacks risk management and strict supervision on vessel charter operations. The group suffered a total loss of RMB34.1bn ($5.49bn) in long term charter deals from 2009 to 2013.
Lastly, the audit office also found some illegal activities inside the group and has reported them to the authorities for further investigation.
Cosco Group has been requested by the audit office to release a rectification report publicly.