Dismissal of Chairman of Kien Giang Water Supply and Drainage Company

On November 10, information from the People's Committee of Kien Giang province said that Mr. Lam Minh Thanh, Chairman of the People's Committee of Kien Giang province, has just signed a disciplinary decision to dismiss Mr. Nguyen Huu Hoai Phuong, Chairman of Kien Giang Water Supply and Drainage Company Limited.

Mr. Nguyen Huu Hoai Phuong, in his responsibility as the leader, took advantage of his position and power while performing official duties, allowing many violations of the law on bidding, not properly performing assigned tasks, causing loss and waste; loosely managing and illegally exporting chemicals, causing loss of state assets; and requesting payment of remuneration in violation of regulations.

In addition, the Chairman of the People's Committee of Kien Giang province also disciplined Mr. Au Van Tam and Mr. Nguyen Huynh Tam, both Deputy Directors of Kien Giang Water Supply and Drainage Company Limited, with a reprimand. Mr. Ngo Hoang Tuan, Chief Accountant of this company, was also disciplined with a reprimand.

Previously, the Kien Giang Provincial Inspectorate issued Conclusion Notice No. 43/TB-Ttr dated May 9, 2023 on the implementation of legal provisions on corruption prevention and control; organization and production activities at Kien Giang Water Supply and Drainage One Member Co., Ltd.

Event - Removal of Chairman of Kien Giang Water Supply and Drainage Company — Kien Giang Water Supply and Drainage Company Limited.

Specifically, in production and business activities, the company did not develop a labor use plan; recruited many people, leading to excess workers; did not develop salary scales and tables, leading to improper salary payments. From 2018 to 2021, the company did not develop many internal management regulations, leading to some expenses not following proper procedures.

In the purchase, management and use of chemicals, Kien Giang Water Supply and Drainage Company continues to violate the law on bidding and contractor selection; does not correct violations after inspection. Purchases chemicals at a higher price than similar products of the same Vietnamese origin at the same time, showing signs of loss and waste.

Regarding the long-term financial investment situation, the company received dividends in the form of 122,762 shares but did not monitor the number of shares increased in the financial statement notes; the investment in Southeast Asia-MeKong Rach Gia Water Supply and Consulting Joint Stock Company (referred to as MeKong Company) suffered a loss but the Company did not set up a provision for financial investment risks; did not develop regulations and evaluate the level of task completion on the basis of which to decide on the remuneration level for the company's managers appointed to represent capital contributions in many other companies and enterprises; paid remuneration in violation of regulations to representatives of capital contributions in other enterprises.

In addition, the company did not require the representative of the company's capital contribution to periodically or suddenly report on the financial situation, business results and other contents of the company with capital contribution from the state-owned company, and did not report to the owner to handle the recovery of the amount of VND 1,903,283,000.

Regarding the signing of a contract to purchase and wholesale clean water with Mekong Company: From 2019 to 2022, the Director of Kien Giang Water Supply and Drainage Company continued to purchase clean water from Mekong Company at a higher price than the selling price of clean water from other companies, without reporting to the owner, without ensuring compensation for production and business costs, showing signs of not properly performing assigned tasks, causing loss and waste of the state budget.

Regarding drainage services: The Company did not pay to the state budget the revenue from drainage services from July 2020 to December 2022, the amount of VND 37,385,989,690.

Regarding the program to prevent clean water loss and revenue loss: The average water loss rate in the province by 2022 is 28.23%, not meeting the target according to Decision No. 2147/QD-TTg dated November 24, 2010 of the Prime Minister approving the National Program to prevent clean water loss and revenue loss by 2025 (by 2020 it is 18%, by 2025 it is 15%).

Regarding the implementation of regulations related to salary scales, payrolls, and welfare funds, Kien Giang Water Supply and Drainage Company has not developed regulations on salary and bonus payments for company managers.

There are actual situations where overtime is not done, but overtime is contracted and paid; salaries are paid in violation of regulations; responsibility fees are paid to the People's Inspectorate in violation of regulations...

From the limitations and violations discovered through the inspection, the Chief Inspector of Kien Giang province requested the Department of Home Affairs to advise the People's Committee of Kien Giang province to organize a review and handle a collective and review and discipline an individual.

Assign the Director of Kien Giang Water Supply and Drainage Company to review and discipline 6 individuals depending on the nature and level of violations and review and learn from experience 12 other individuals.

The Chief Inspector of Kien Giang province requested Kien Giang Water Supply and Drainage Company to recover and pay to the State budget the amount of VND 40,277,090,870 (VND 38,373,807,870 has been paid for correction).

The Inspectorate of Kien Giang province has transferred the case file of violations with signs of crime to the investigation agency, including: Agreement to buy clean water without reporting to the owner, not ensuring compensation for production and business costs, higher than the selling price of clean water of other companies, showing signs of not performing assigned tasks properly, causing loss and waste of the state budget.

The company continues to violate the law on bidding, showing signs of not properly performing assigned tasks, causing loss and waste.

Poor management of chemicals and illegal export of 63,820 kg of PAC and 150 kg of chlorine, showing signs of causing loss of state assets; requesting payment of remuneration in violation of regulations, showing signs of taking advantage of position and power while performing official duties.

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