Financial inspection project for enterprises in three countries of Africa
Issue Time：2015-03-18 Source：CEA Author：CEA
I. Background and necessity for financial inspection toward overseas enterprises
In 2011, Ministry of Finance established financial inspection system for overseas enterprises and officially started the work in 2012. The overseas financial inspection helps the government to understand actual implementation and achievements of “Going Global” strategy. The inspection aims to ensure value maintenance and appreciation of state-owned assets overseas and discuss bigger support to “Going Global” enterprises.
II. Inspection targets
They are international contracting project and enterprises conducting direct overseas investment. Details are as below:
|
No. |
Country |
Type of inspection target |
Inspection target |
|
1 |
Angola |
Project contracting |
Lobito port restoration and expansion project |
|
2 |
Angola |
Project contracting |
North Cabinda 2-D seismic survey project |
|
3 |
Zambia |
Project contracting |
Expansion project of hydropower station in the north side of Kariba |
|
4 |
Zambia |
Direct investment |
CNMC Luanshya Copper Mines Plc. |
|
Zambia Chambishi Hydrometallurgy Co., Ltd. |
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|
Chambishi Copper Smelter Ltd. |
|||
|
Non-ferrous corporation Africa mining PLC. |
|||
|
Zambia-China Economic & Trade Cooperation Zone |
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|
5 |
Tanzania |
Project contracting |
Kigamboni Bridge and Road Engineering Project |
|
6 |
Tanzania |
Direct investment |
Tanzania Company of China-Africa Agriculture Investment Co. Ltd. |
III. Inspection purpose
On the one hand, it aims to investigate investment and financing activities, production and operation, financial management and risk control, etc. of overseas enterprises, regulate direct investment by overseas enterprises and international contracting activities, enhance financial management, internal control regulation and risk prevention in overseas enterprises, strictly regulate performance evaluation on overseas investment and maintain financial fund safety; on the other hand, it helps to understand development environment of overseas enterprise and collect their suggestions and advices, providing reference for financial policy development and scientific utilization of financial funds.
IV. Significance of financial inspection toward overseas enterprises
Through financial inspection toward establishment, financial and accounting system, internal control regulation, performance, overseas development environment and suggestions and advices of each target, the entrusting party got feedback on establishment (acquisition), financial management and internal control regulation of each target. Each of them has strict performance evaluation system and enjoys favorable economic benefit and significant social benefit, which plays great role in promoting bilateral political and transaction relationship, etc.
