Details of a series of lending violations in a year 2000 audit at the Bank of China were revealed yesterday, days after the sacking of its former president. A report from China's National Audit Office said 22 clues to "big and important cases" involving about ¤350 million (£276 million) had been found in the audit and that 35 people had been "handed over to relevant departments".

Last week the former bank chief, Mr Wang Xuebing, was fired as president of the China Construction Bank in connection with loans made during his previous tenure at Bank of China, a position he held for seven years up to February 2000. No link was drawn in the report between the violations and the sacking of Mr Wang.

The head of the National Audit Office, Mr Li Jinhua, was quoted in Chinese media yesterday as saying the main problems uncovered from the Bank of China audit were violations of rules in lending, the issuing of letters of credit and bills of exchange, and off-the-account operations.

The report gave no exact dates for the findings, but said the audit of the Bank of China's performance in the year 2000 was conducted last year. The audit covered the bank's headquarters in Beijing, seven provincial branches and over 150 lower-level branches.

Mr Li said the National Audit Office would also investigate the China Construction Bank and other state-run firms to determine how they used funds raised through special treasury bond issues since 1998. "We will keep a close eye on violations of law and any waste brought on by poor decision-making by officials and state firm bosses," Mr Li was quoted as saying. He said this year's audit of China Construction Bank would cover its headquarters in Beijing and subsidiaries nationwide, and would review the quality of its assets and projects financed by international organisations.