The State Audit continues to uncover mismanagement in the Vietnam Oil and Gas Group (PVN), with the group still responsible for unpaid debts of VND94.388 billion to the state budget.
EVN’s debt means PVN is unable to pay taxes
An audit in 2010 revealed a series of wrongdoings among PVN member companies, such as a lack of transparency in land management or violations related to investment construction laws in the office of Vietnam Petroleum Institute, Petroleum Financial Centre and Vung Tau Petroleum Hotel projects.
Wrongdoings were also detected when listing personal, corporation income taxes and severance tax. After the audit, PVN was required to pay outstanding taxes of VND185.76 billion (USD8.9 million).
But at the end of 2011, only VND 91.388 billion (USD4.4 million) had been paid.
The State Audit later discovered that VND81.54 billion (USD3.9 million) of the debt remained because Electricity Group of Vietnam (EVN) still owed PVN VND11.981 trillion from electricity sales. PVN said they demanded the debt to be paid by December 31, 2011.
One PVN member, the PetroVietnam Finance Company had given almost VND6 billion (USD288,000) in subsidised interest rate loans to businesses operating in non-prioritised economic sectors. PVN has since reclaimed the money.
Its member, Mekong Petroleum Joint Stock Company, also suffered severe losses from irresponsible management period 2008-2009.
The State Audit ordered PVN to investigate and clarify the responsibilities of each individual or group to resolve problems.
Currently, PVN has restructured two units and replaced leading figures such as chairman or directors in a bid to stamp out incompetence.
