Many wrongdoings discovered at SCIC
On November 22, the Government Inspectorate submitted reports that even though SCIC is a state-owned firm with 100% state ownership, there were many wrongdoings in the reception and transfer of state capital.
SCIC assumed the role of representing the state’s stake in the Vietnam Trading Engineering Construction JSC (Vietracimex), without authorisation from the prime minister. It violated regulations while receiving the right to represent state capital in the Vietnam Insurance Corp (Bao Viet) from Vinashin.
SCIC submitted report that it had received the right to represent state's capital in Viet Ninh Service, Investment and Development JSC (VINICO) from Ninh Thuan Province then returned the VINCO to the province in 2009. In reality, SCIC hasn't taken on the VINICO.
From 2008 to 2013, SCIC returned the right to represent state’s capital in 30 companies to localities but only the transfer of Jetstar Pacific Airlines was authorised by the prime minister.
The investment to increase charter capital at Hanoi Transport Construction JSC wasn't planned. It gave Vinaconex VND1.6 trillion (USD70.7 million) to help it pay part of its VND2 trillion debt. Another ineffective move was the VND43.3 trillion investment in the Phuong Nam Paper Pulp Mill.
The Inspectorate discovered that 21 employees are over retirement age and many leaders of SCIC are also managing four to five other big companies. The assigned representatives didn't submit regular reports or were incompetent and let companies violate regulations and make ineffective investments.
The Inspectorate asked SCIC to tighten management over the representatives. They also proposed to let the Ministry of Finance and relevant agencies to deal with over VND600 billion (USD27.3 million) in illegal funds, invoices and tax arrears.
Responsibilities of individuals and organisation must also be investigated.
