Mismanagement leads to investment loss at wealth fund

Auditors say that CIC erred in due diligence and oversight of 12 overseas projects

Management irregularities at China Investment Corp, the nation's sovereign wealth fund, led to overseas investment losses that could widen, the National Audit Office said on Wednesday.

The National Audit Office conducted an audit on CIC last year and identified problems such as dereliction of duty, inadequate due diligence and post-investment management in 12 overseas investments made by CIC between 2008 and 2013. Six of the investments were unprofitable, four of them had unrealized losses, and two may potentially lose money, it said.