The nation's top auditor has vowed to improve management of insurance funds following a string of abuses including the theft of nearly 400 million yuan in social security funds in northwestern Ningxia region .
An investigation led by National Audit Administration carried out from September to November last year uncovered the irregularities in Ningxia, Xinhua said.
The audit covered the collection, management and use of seven kinds of social security funds, including pensions and medical insurance.
The probe revealed that officials of the health insurance fund management centre in the city of Shizuishan transferred more than 3.2 million yuan of premiums to the bank accounts of friends and relatives.
A further 2.5 million yuan of medical insurance funds was transferred to a local pharmaceutical company through eight illegal bank transactions using false documents.
The Ningxia government has vowed to tackle the problem of theft by establishing a committee to supervise social security funds and improve the transparency of their management.