China’s state auditor has uncovered RMB 1.08 billion ($160 million) in irregularities involving maternity insurance and subsidy funds, reports Caixin, affecting the benefits of more than one million people.
The National Audit Office (NAO) in its annual report on the central budget execution examined RMB 53.1 billion across 26 provinces and found that local governments failed to issue RMB 1.03 billion in benefits to over 900,000 people. In 19 provinces, authorities failed to cover maternity insurance premiums for nearly 340,000 unemployed individuals, violating regulations that require unemployment insurance funds to make these payments on their behalf.
The audit also revealed widespread fraud, with RMB 54.3 million illegally obtained or distributed. In 17 provinces, 279 employers scammed RMB 31.1 million from the maternity insurance fund by fabricating employment relationships and artificially inflating the payment base to maximize payouts.