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$26m cheated from social security funds

(China Daily/Xinhua)
Updated: 2008-06-14 09:14

Fraudulent claims involving social security funds topped 180 million yuan ($26 million) and involved 60,000 people last year, the Ministry of Human Resources and Social Security revealed on its website on Thursday.

A spokesman for the ministry said the scams were exposed during routine examinations in which 47.6 million beneficiaries of social security funds were examined.

The money has been recovered, he said.

But the ministry stopped short of explaining how it is dealing with scammers.

In most cases they go unpunished because the amount scammed by each individual falls short of the fraud charge threshold.

Since 2005, the ministry has examined the collection and payment of social security funds.

By the end of last year, authorities had checked 1.23 million enterprises across the country, covering 110 million people.

The ministry also retrieved 24.2 billion yuan in pension funds owed by companies, according to the spokesman.

The ministry issued the regulations on the management of social security funds last year.

By the end of last year, detailed measures were worked out in 24 provinces, municipalities and autonomous regions nationwide.

China's social security system is made up of five parts: pension insurance, medical insurance, work injury insurance, unemployment insurance and maternity insurance. About 300 million people were covered by it at the end of last year.