Each year when the head of the National Audit Office (NAO) publishes his annual report, there are always examples of scandalous deeds, such as the mishandling of public projects and misuse of State funds.

The 2005 list includes a real big name: The National Development and Reform Commission (NDRC).

Auditor-general Li Jinhua, in his report delivered to the National People's Congress Standing Committee on Tuesday, criticized the commission for five counts of wrongdoing, ranging from approving State subsidies for road projects based on fraudulent applications to foot-dragging over major State investment projects.

Problems with the NDRC heard here are not as sensational as corruption and embezzlement cases some State auditing reports have revealed.

But they are still alarming enough if the NDRC's pivotal role in our national economy is taken into account.

The problems exposed in Auditor-general Li's report indicate that our major economic decision-making bodies, such as the NDRC and the Ministry of Finance, should be put under closer scrutiny to ensure they perform their duties properly and to avoid power abuses.

The NDRC, formerly known as the State Planning Commission, used to be the country's top economic decision-making body.

It determined economic development programmes in the entire country, as well as all major investment and production plans of the central government and its enterprises.

Now investment and production decision-making rights have largely been given to enterprises as the country moves from a planned system to a market economy.

But the launch of very big industrial projects is still subject to endorsement by the commission.

What is more important is that the NDRC remains a major decision-maker on infrastructure projects in sectors including transportation, power and agriculture.

It has the final say on whether a project is needed, how much money the State will invest and how to divide the money between different areas.

Each project could easily swallow billions of dollars and could have major environmental implications.

So any mistakes in these projects either with their feasibility studies, detailed investment plans or implementation can lead to huge waste or environmental damage.

Examples of ill-conceived projects are not rare. Some airports and roads have proved redundant. The spreading dam-building craze is also putting local environments at risk.

Misjudgment by the NDRC can also result in shortages of public goods. A handy example is the current power shortage which, to a large extent, can be attributed to the commission's suppression of the power sector's development in the 1990s in the belief that power was in over supply and would continue to be so.

Over the decades during the planned economy era, people at the State Planning Commission developed a sense of superiority, which has now been inherited by some NDRC staff.

Local officials and enterprises complain that some NDRC bureaucrats still dwell on their past role as meticulous State planners.

In the meantime, supervision over such a powerful institution is weak.

The National People's Congress (NPC) deputies listen to the NDRC's work report only once every year. NPC Financial and Economic Committee members only occasionally make comments about the commission's work.

NAO supervision has proved to be the strongest. The NAO picks its auditing priorities every year, as it cannot focus on every ministry and commission every year.

A more regular, effective and systematic approach is badly needed in checking the work of major government bodies such as the NDRC in order to make them accountable for their mistakes and misbehaviour.