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Six Certification Companies Face Penalties

State industry and commerce departments have or will punish six certification institutions that were found to have violated regulations and committed fraud, according to China's top watchdog on certification and accreditation.

Following up on lodged complaints, joint panels were dispatched to conduct investigations on 11 certification institutions since late December, said Xiao Jianhua, an official with the Certification and Accreditation Administration of China (CAAC) yesterday.

After months of investigation, the watchdog found six certification institutions, five in Guangzhou, capital of South China's Guangdong Province, and one in Wuhan, in Central China's Hubei Province, having overstepped the scope of their registered businesses, creating false auditing records and charging extra fees, Xiao said.

As a result, certificates issued by these institutions are inaccurate and cannot be trusted, warned the official. They are also investigating five other institutions, and the results will be publicized soon.

Certification and accreditation firms give appraisals on the quality of products, services and management systems based on technical regulations and standards.

Businesses benefit significantly from certification and accreditation.

This field began later in China compared with many developed countries, said Li Chuanqing, vice-minister of the State General Administration for Quality Supervision and Inspection and Quarantine (AQSIQ). But after it was adopted, China has made great achievements in this field.

Wang said a new decree will be announced soon on the establishment, training, and supervision of certification institutions around the nation.

(China Daily March 27, 2002)

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