The Countermeasure Studies To Prevent The Loss Of The State-owned Assets In The Process Of The State-owned Enterprises Transformation In Jilin Province

The stated-owned enterprises transformation in Jilin Province involves3503 companies with the total assets of 284.38 billion yuan, among which thefocus lays on more than 1000 state-owned industrial enterprises. Therefore, in2005, Jilin Province defines the key points of the uphill battle of thestate-owned enterprises'system transformation as the 816 state-ownedenterprises with the accounting assets of 92.81 billion yuan. We will try tofinish the system transformation job of these state-owned industrial enterpriseswithin one year. These enterprises have great difficulties, so the systemtransformation tasks for them are very arduous. However, in the meantime ofthe system transformation, we cannot forget to take measures to preventagainst the loss of the state-owned assets.I. To prevent against the loss of the state-owned assets needs first toknow the loss the state-owned assets properly.Since different people have different understandings to the definitions ofthe assets or of the capital, the standards often differ as for judging whether thestate-owned assets are suffering loss or not. The so-called capital is a means togain the future gains. Its value depends on the future gains. Strictly speaking, itis "the discounted present value of the expected future gains". When there isexpectation, there is subjectivity; that is to say, people may have differentopinions as for the evaluation of the value of a certain item of capital. Thenwhen the execution price is lower than expected, one will say there appears theloss of the assets. How to understand this problem? Since people's evaluationmay differ, it will be decided by the market auction. The final execution pricewill go between the highest price and the lowest price, i.e., "the objectiveprice"as we all know. Therefore, when we judge whether the state-ownedassets are suffering loss or not, we should take the result of the marketauction---"the objective price"as the standard, for only this price will thefairest price which fits in with the reality. Of course, in reality, there are thosepeople who deliberately lower the execution price to gain personal profits andthus arises the man-made state-owned assets loss. We should judgedistinctively.II. The channels and the reasons for the loss of the state-owned assetsin the process of the state-owned enterprises'system transformationThe ways of the loss of the state-owned assets are diversified. Here Isummarize the most common channels that give rise to the loss of thestate-owned assets in the process of the system transformation.1. During the enterprise asset and capital verification, the irregularitiesand the loopholes arise the loss of the state-owned assets. (1) The assetsverification is liable to be only a form, so the verification results cannot totallyreflect the asset stock; (2) The assets verification is not comprehensive, andthere appears the asset verification leakage; (3) There also appears theformless assets evaluation leakage or not being counted into the state shares;(4) during the asset and capital verification, there appears the non-existent orover-listed asset loss by making us of the country's policy of allowing toverify and annul the asset loss.2. The property rights trade is not regulated with many of the backroomoperations, which make the country's interests suffer the loss. (1) The countrypolicies are not consummate, which arises many under-table trades of theproperty rights. The lack of the openness and transparency provides chancesfor the backroom operation and the under-table trades; (2) some peopledestroy the fair trades of the property rights for their own interests and setmany man-made barriers. For example, narrow the scope of the tradeinformation, limit the qualification of the traders or reveal the base number ofa tender etc.3. The management personnel of the enterprise abuse their rights and buywhat they sell, which leads to the state-owned assets purchased by individualsat a low price. (1) MBO makes the state-owned assets suffer loss. "Theinternal personnel"control the whole purchase process, including the assetverification, evaluation, price fixation and the means of the purchase. Thewhole process lacks the effective supervision; (2) There are also people whomake use of the account to make the false accounting book, illegally transferthe creditor's rights and the debts, increase the capital and hide the profits toachieve the aim of possessing the state-owned assets by lowering theenterprise net assets; (3) There also exist those who seek for their owninterests by abusing their rights and defiantly divide privately, occupy andembezzle the state-owned assets by making use of chances of the systemtransformation and the property rights transference.4. With the excuse of the favored policies, lower the price to transfer thestate-owned assets in disguised form. For instance, some favor policiesregulate that the buyer should pay the payment in full once and for all or takeout enough capital or achieve what kind of conditions, then they can have 20%discount. If the internal working staff of the enterprise or the particular buyers,the purchase can have 10% discount. This provides chances for theopportunists to lower the price and embezzle the state-owned assets.5. Go against the economic laws and carry out "the regional politicalachievements system transformation"by making use of the administrativeorders. Policy decision does not follow the procedures and lack the systematicresearch rectification. The "cut the Gordian knot"types of systemtransformation and of the property rights transference will bring out blundersand make the state-owned assets suffer the loss.6. The intermediary organizations operate against the rules. The assetsevaluation is not in accord with the standards. Conspire with others to make afalse accounting book to embezzle the state-owned assets.7. The loopholes in the process of liquidating the creditor's right or anaccount give rise to the state-owned asset loss. First, the management of theshould-be received accounts is not strict and the urge to pay back the accountis not powerful. Thus the creditor's right is suspended. Second, the annulled"bad accounts"are not recorded or filed. After the system transformation, theurged repayment is continued and individuals normally possess the receivedaccount.8. The irregular employment and the placement work of the three kinds ofthe assets (non-main-industry assets, dormant assets and the effective assets ofthe bankruptcy enterprises) give rise to the loss of the state-owned assets.9. When the state-owned enterprises try to transform its systems, the newand old enterprises cannot break off in time and completely, which leads to thefree occupation and employment of the state-owned assets of the oldenterprises by the private-owned enterprises and the corporate enterprises afterthe system transformation.10. The bankruptcy also leads to the state-owned asset loss. The mainmotivation of a part of enterprises is to evade the debts. The enterprise goesbankruptcy and the loan from the bank can be annulled. The phenomenon of"bankruptcy is beneficial"and "first divide then go bankruptcy"is verysevere.11. The improper employment and the imperfect supervision after thetransformation or the transference make the state-owned enterprise suffer lossin the process of the management of the enterprises after the transformation.The reasons for these phenomena are: (1) the state-owned asset propertyright relation is not clear; (2) the legal system is not consummate;(3) theenterprise legal person structure is not consummate and the modern enterprisesystem has not been completely constructed. (4) The market where theproperty rights trade proceeds is not sound; (5) the policy decision proceduresare not scientific; (6) the financial management system is not complete;(7)malevolent merger; (8) the awareness of the formless properties is weak.III. The countermeasure suggestions to prevent against thestate-owned asset loss1. As far as the mechanism is concerned, the government should provideconditions for the state-owned enterprises'system transformation. (1) Perfectthe state-owned assets management system of Jilin Province and completelysolve the problem of the owner absence. We can learn from the experiences ofShang hai, Shen zhen, Shan xi etc, and construct a three-layer state-ownedasset management system composed of "the state-owned assetcommittee---the state-owned asset management companies---the state-ownedenterprises". (2) Adjust the current mechanism of policy coming from all sidesand the management of several directors, perfect the different layers of thestate-owned asset management mechanism of the Ji lin province as soon aspossible and construct a positive management and operating mechanism of thestate-owned assets. (3) Pay attention to the exploration of the human resourcesand enhance the training and guidance of the state-owned enterprises'systemtransformation participators and the state-owned asset managementdepartment personnel.2. Considering the real situation of the Jilin province, enact immediatelythe relevant policies to prevent against the loss of the state-owned assets and tostandardize the system transformation procedures.3. Properly position the function of the government, and make sure thatgovernments of different layers do not overstep, absent and abuse theirpositions. Prevent against the interference and the backroom operation of theparticular governmental personnel. Make use of the function of the market,and treat the problems of the state-owned assets during the transformationperiod openly, fairly and impartially.4. The state-owned enterprises'system transformation should bediversified to prevent against "one cut for all"or "the mobile systemtransformation"and the corresponded state-owned asset loss.