Foreign Exchange Market

Over-reporting causes US$2.04b forex discrepancy

PUBLISHED : Friday, 12 January, 2001, 12:00am
UPDATED : Friday, 12 January, 2001, 12:00am

Updated at 6.34pm:
Government checks on foreign investments revealed a US$2.04 billion (HK$15.87 billion) gap between actual amounts and the total announced in the first 11 months of last year, China News Service reported on Friday.

Investments reportedly worth US$26.15 billion were actually worth US$24.11 billion, a customs office examination showed. Companies may have over-reported their investments to alter taxes, transfer assets and exaggerate depreciation, according to information from inspection and quarantine departments.

Inspectors also found that many foreign business people sold second-rate quality products to Chinese enterprises and supplied outdated technology.

To answer these questions, the State Administration for the Inspection of Import and Export Commodities, the Ministry of Finance and the General Administration of Customs are urging stricter examinations.

All imported equipment given to Sino-foreign joint ventures should pass quality tests and appraisals by government departments, the three agencies urged, China News Service reported.