The National Audit Office (NAO) has remained in the spotlight for weeks since its report to the Standing Committee of the National People's Congress was released late last month.
The latest move by the NAO is to begin an inquiry into the four State-owned financial asset management companies Huarong, Great Wall, Orient and Cinda.
Two days before that, NAO started auditing the management of nine State-owned companies.
The high-profile transfer of NAO's focus from government institutions to State-owned enterprises underscores a significant new dimension of its job description.
Under the current economic system, State-owned enterprises, especially the large ones, are managed in a way similar to government departments. They undertake projects that are less profitable or even unprofitable but which offer a valuable contribution to the life of common people.
But more importantly, the managers of State-owned enterprises are handling massive amounts of State assets.
This property was created and has accumulated as a result of the people's work in last several decades.
In this sense, whether State-owned enterprises are properly managed and whether State assets have maintained their value are questions no less important than those of inquiring into the conduct of government branches.
As a designated watchdog of the central government, NAO is the proper agency to answer to these questions.
In addition, NAO involved State-owned enterprises could solve another problem that has concerned many for a long time: the "State-owned" firms do not have a substantial "owner" to report to.
Put under the supervision of NAO, the State-owned enterprises may feel the pressure of a real boss and the need for more self-discipline.
Noticeably, the NAO started its scrutiny of the State-owned companies at the invitation of the State-owned Assets Supervision and Administration Commission of the State Council and the Organization Department of CPC Central Committee.
(China Daily July 14, 2004)
