By He Tieyan and Qian Xiaohu
Recently, representatives of the Logistics Department of the Chinese People’s Liberation Army (PLA) Army and the five big banks of China jointly signed the Memorandum of Cooperation on Supervision and Control of the Ground Force’s Agent Construction Projects Funds in Beijing.
BEIJING, Feb. 26 (ChinaMil) -- Recently, the Logistics Department of the Chinese People’s Liberation Army (PLA) Army and the five big banks of China, including Industrial and Commercial Bank of China (ICBC), Agricultural Bank (ABC), Bank of China (BOC), China Construction Bank (CCB) and Bank of Communications (BCM) jointly signed the Memorandum of Cooperation on Supervision and Control of the Ground Force’s Agent Construction Projects Funds in Beijing. A series of problems that have long plagued the military are expected to be resolved, such as how to monitor the fund flow of the construction unit, or whether there is any abnormal flow of funds in the account.
After implementing Agent Construction System, the military construction projects will be administered in a unified manner, and the management mode of construction funds will be changed from “decentralized classification” to “centralized and unified”. However, the large amount of funds and high management requirements call for the integration development of the military and banks (military-bank integration). This cooperation between the PLA Army’s logistics department and five big banks aims to control and make full use of the construction funds, ensuring the smooth completion of construction projects.
The memorandum focuses on the demarcation of responsibilities, obligations and operational mechanisms of both sides in the supervision and control of project construction funds, as well as the flow and amount of funds in real time. It aims at grasping the progress of project construction and promoting the fulfillment of programs vigorously. And it also functions to provide strong support for maintaining the bottom line of military fund security, making wise decisions, and stepping up the implementation of construction projects.
The fund supervision and control is realized mainly by means of the special edition of online banking and controlled checks. The banks will dynamically monitor the flow of funds in the construction unit's account in real time according to the expenditure plan approved by the military. The key aspects of supervision and control are: the flow and amount of funds, the payment of unforeseeable expenses, the payment of wages for migrant workers and the abnormal accounts and balance of funds.
Furthermore, the PLA Army's Logistics Department will strengthen cooperation with the five big banks in mutual benefit in order to realize precise supervision and in-depth integration. This will lay a sound foundation for promoting the experience of fund supervision by military-civilian cooperation to a larger scope. A stable and reliable institutional mechanism will come into being, and the military-bank integration will be further expanded to broader fields in turn.
