Environmental Auditing on Environmental Auditing on the Yellow River Basinthe Yellow River Basin

Liu Huibo from CNAO

04/21/23 Penang, Malaysia

ContentsContents

Get to know the Yellow RiverGet to know the Yellow River Audit plan (topics, objectives, scopes and Audit plan (topics, objectives, scopes and

criteria)criteria) Audit findings and recommendationsAudit findings and recommendations Follow-upFollow-up Lessons learnedLessons learned

Get to know the Yellow RiverGet to know the Yellow River

5,464 km

The cradle of Chinese civilization

Major environmental risksMajor environmental risks

Flood• Ice, rainstorm and silt Water shortage• 58 billion m3

Soil and water erosion• 35kg/m3

Water pollution• Organic pollutants

Governments’ CountermeasuresGovernments’ Countermeasures Flood control

Protection of water resources

Soil and water conservation

Prevention and control of water pollution

Preliminary assessment onthe performance of countermeasures

Identification of risks

Audit topics, …

Risk based approach

Audit topicsAudit topics

Pollution prevention and control

Soil and water conservation

Fees related to water resources

Objectives: compliance and Objectives: compliance and performanceperformance

1. to evaluate to what extent the Yellow River Plan has been implemented,

2. to assess the efficiency and effectiveness of construction of projects for the prevention and control of soil and water erosion,

3. to examine the management and use of fees related to water resources.

ScopesScopes

Implementation of the Yellow River Plan

Construction and operation of major projects concerned

Fees related to water resources

Auditee Governments

Finance, environment and water resource authorities

Project contractors

CriteriaCriteria

the Law on Prevention and Control of Water Pollution

the Law on Soil and Water Conservation the Regulations on Waterway Management the Yellow River Plan the Environmental Quality Standards for

Surface Water, the Standards on Pollutant Discharge for

Urban Sewage Treatment Plants

Audit findingsAudit findings

Against objective 1: to evaluate to what extent the Yellow River Plan has been implemented,

56 out of 253 sewage treatment plants--not completed timely

10 out of 96 sewage treatment plants – pollutant discharge over the standard limits

Audit findingsAudit findings

A fund shortfall of 277 million Yuan

Recovery of water and soil erosion was affected

Against objective 2: to assess the efficiency and effectiveness of construction of projects for the prevention and control of soil and water erosion,

Audit findingsAudit findings

Failed to collectFailed to collect Did not pay Did not pay

water resources water resources feefee

216 million216 million 216 million216 million

charges of charges of wastewater wastewater treatmenttreatment

35 million35 million 19 million19 million

charges of charges of garbage garbage disposal disposal

573 thousand573 thousand 90 million90 million

charges of charges of pollutant pollutant dischargedischarge

817 thousand817 thousand 206million206million

Against objective 3: to examine the management Against objective 3: to examine the management and use of fee of water resources and other and use of fee of water resources and other funds.funds.

Audit findingsAudit findings

980 ha. of riverbed was illegally occupied 980 ha. of riverbed was illegally occupied No assessment on the impact of flood preNo assessment on the impact of flood pre

vention was made.vention was made.

No project was approved by the competeNo project was approved by the competent authority in charge of riverbed.nt authority in charge of riverbed.

Audit recommendationsAudit recommendations

To enhance pollution prevention and control in key To enhance pollution prevention and control in key areas, enterprises and industriesareas, enterprises and industries

To increase the investment in severely water-eroded To increase the investment in severely water-eroded areas and supervise the allocation of funds and effortsareas and supervise the allocation of funds and efforts

No permission granted to No permission granted to reduction/exemption/postponement/suspension of feesreduction/exemption/postponement/suspension of fees

To intensify the punishment on illegally occupation on To intensify the punishment on illegally occupation on the riverbedthe riverbed

Follow-upFollow-up

Increased the investment, speeded up the Increased the investment, speeded up the

construction and updated sewage treatment plantsconstruction and updated sewage treatment plants

Funds used on soil conservation were raisedFunds used on soil conservation were raised

Collected and handed in 42 million YuanCollected and handed in 42 million Yuan

Formulated rules and conducted punishmentsFormulated rules and conducted punishments

Lessons learnedLessons learned Risk based approach• Extensively used in EA

Follow up• To increase the effectiveness of audit report• To assist the legislature• To evaluate SAI’s performance

Compliance and performance audit• Common type of EA

Thank youThank you