Group 1 - Morgan Stanley has agreed to pay 1.4 billion ringgit (approximately 330 million USD) to Malaysia to settle all claims related to 1MDB, a sovereign wealth fund at the center of a major financial fraud scandal [1][2] - The settlement will eliminate all risks associated with the scandal for Morgan Stanley, which was exposed in 2015 [1] - In 2020, Goldman Sachs reached a 3.9 billion USD settlement with Malaysia over allegations of misleading investors during a bond sale that raised 6.5 billion USD for the fund [1] Group 2 - The U.S. Department of Justice has identified that 450 million USD from 1MDB was misappropriated [1] - On the same day, the Swiss Justice Minister imposed a fine of 3 million Swiss francs (approximately 3.7 million USD) on Morgan Stanley for failing to take necessary organizational measures to prevent money laundering related to misappropriated funds from 1MDB [1] - Since 2009, hundreds of millions of dollars have flowed out of the 1MDB entity until the scandal was revealed in 2015 [2]

Core Insights - The report from the National Audit Office reveals significant issues regarding the misappropriation of funds by various levels of government, particularly for "three guarantees" and debt repayment [2][3][4] Group 1: Financial Misappropriation - A total of 651.8 billion yuan was misappropriated across 92 regions, primarily for "three guarantees" and repayment of state-owned enterprise debts [2] - In the context of disaster recovery, 57 billion yuan was misused from a total of 2,066 billion yuan audited across 13 provinces, violating the designated use of funds [2][3] - The audit found that 153.68 billion yuan was either falsely reported or misappropriated from the 1 trillion yuan special bonds issued for major projects, with 70.6 billion yuan redirected to "three guarantees" or other expenditures [3] Group 2: Specific Sector Audits - In the education sector, 40.89 billion yuan was misappropriated by 110 counties, with funds diverted for debt repayment and other non-educational purposes [3][4] - The audit of pension funds revealed that 406.26 billion yuan from urban and rural residents' pension insurance was misused for "three guarantees" and debt repayment across 13 provinces [4] - Agricultural subsidy audits indicated that 41.64 billion yuan was misappropriated by 175 counties in 16 provinces, affecting farmers' subsidy payments [4] Group 3: Audit Response and Mechanisms - The National Audit Office has established a closed-loop system for tracking and addressing audit findings, enhancing collaboration among responsible departments for rectification efforts [4] - The report indicates that significant progress has been made in addressing major issues affecting high-quality development and social stability, with a comprehensive rectification report expected by the end of the year [4]