Money

Tech, media big embezzlers in Haidian

By Huang Yuli (China Daily)
Updated: 2010-06-10 11:39

Embezzlement is most rife in the high technology, media, catering and logistics industries, according to statistics released by Haidian Procuratorate.

Among the 59 cases, which involve 76 people, the procuratorate handled in 2009, the four industries amassed more than 60 percent of the total.

"Technology and media are the most troublesome industries," said Zhang Chunyu, a prosecutor of the procuratorate.

"In a recent case, an editor-in-chief of an automobile magazine embezzled more than 700,000 yuan from an advertising charge," she said.

"But catering and logistics cases rarely top 50,000 yuan."

Accounts and sales people were labeled as the biggest criminal group of the finding, accounting for about 40 percent of the total. Middle and high management follow with more than 30 percent, with the remaining percent mostly attributed to accounts staff.

The statistics revealed that embezzlement opportunities often stemmed from a lack of management and supervision in personnel and financial systems.

"The problem with personnel systems lies in enrollment and management, Zhang said.

"For example, high-tech companies often pay too much attention to their staff's technical background and neglect characters and qualities. Catering and logistics organizations usually have a frequent employee turnover."

"A lack of supervision is another mistake many companies make," she added.

"There should always be at least two accountants in any group to check each other, and the board of directors, or relevant supervisors, should keep an eye on middle- and high-level management to limit personal power."

"In many cases, assets are transferred in the name of a contract, so the company's leader should track contracts and post more than one person to handle them," Zhang said.

She added that those who embezzle funds of less than 100,000 yuan might only go to prison for up to five years, but a destroyed credit rating will mean finding a powerful job again near impossible.