China National Audit Office (CNAO) will check unemployment insurance funds this year in 50 cities to an attempt to uncover any malpractice in the management of the funds.

Last year, CNAO audited, on an experimental basis, the unemployment insurance funds in five cities, including Shenyang, Shijiazhuang, Ningbo, Chengdu and Xi'an.

It found that some local officials had embezzled funds, and local authorities had failed to set up special accounts to manage the funds.

There is currently no system in place to supervise local unemployment insurance, fiscal and tax departments.

(Xinhua News Agency May 23, 2005)