Economy

Draft law to prevent misuse of social security funds

(Xinhua)
Updated: 2010-10-25 17:03

BEIJING - China's top legislature Monday began its fourth reading of a draft law on social insurance that aims to prevent the improper use of social security funds.

The draft law stipulates that social security funds may neither be used to cover government budget deficits, build or renovate government offices, nor pay government agencies' day-to-day expenditures.

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The draft was submitted to the Standing Committee of the National People's Congress (NPC) Monday.

The first draft was submitted to the legislature in December, 2007, following a scandal in Shanghai involving 3.7 billion yuan ($502.3 million) of social security funds.

After investigations, authorities there determined that a municipal labor and social security bureau-owned company had illegally loaned the sum to Shanghai Feidian Investment Development Co Ltd.

Provisions relating to social insurance for foreigners working in China are included in the draft.

Furthermore, the draft touches on social security information confidentiality issues.

It says that social security authorities, executive agencies and personnel may not disclose social insurance information submitted by either employers or employees, adding that violations of social security information confidentiality are subject to punishment.