Deputy Prime Minister directs strict handling of violations by construction giants when divesting capital

The Government Office has just sent a document to the Government Inspectorate (GIC) and the ministries of Finance, Construction, the State Capital Management Committee at Enterprises, the People's Committees of relevant provinces and cities, and the corporations under the Ministry of Construction, stating the direction of Deputy Prime Minister Le Minh Khai on implementing the inspection conclusion on the implementation of restructuring, equitization, and divestment of state-owned enterprises under the Ministry of Construction.

Accordingly, the Deputy Prime Minister requested the Government Inspectorate to take full responsibility for the inspection conclusions, ensuring accuracy, objectivity, and compliance with the law, and preventing loss of state assets.

The Deputy Prime Minister also directed the Ministry of Construction , the corporations: Vietnam Cement Industry (Vicem), Vietnam Machinery Installation (Lilama), Vietnam Construction Consulting (VNCC), Construction and Infrastructure Development (Licogi), Construction No. 1 (CC1), Construction Materials No. 1 (Fico), Vietnam Water and Environment Investment (Viwaseen), Construction Mechanics (Coma), Hanoi Construction (Hancorp), Song Da to strictly implement the inspection conclusions in accordance with legal regulations and strictly handle violations.

Headquarters of Vietnam Water and Environment Investment Corporation (Viwaseen) in Hanoi. (Photo: Real Estate)

At the same time, be responsible for checking and reviewing the implementation, restructuring, equitization, and divestment of enterprises in accordance with legal regulations, not allowing loss of State capital and assets, and not allowing violations to occur during the handling process.

For the Ministry of Finance, the State Capital Management Committee at Enterprises, and the People's Committees of Hanoi, Ho Chi Minh City, Ba Ria - Vung Tau, Binh Duong, Dong Nai, Ha Tinh, and Thanh Hoa, the Deputy Prime Minister requested to properly implement the provisions of the law on land and not let State assets be lost.

As reported by VietNamNet, recently, the Government Inspectorate issued an inspection conclusion pointing out many violations in land management and use, and finance when restructuring, equitizing, and divesting state-owned enterprises under the Ministry of Construction.

Through the inspection of financial handling and enterprise valuation for equitization at 10 parent companies - corporations, it was found that financial violations must continue to be handled with the amount (provisional) up to the time of inspection (December 31, 2019) being more than VND 5,690 billion.

TTCP also pointed out that, when determining the enterprise value for equitization at Vicem, Licogi, Viwaseen, the calculation of commercial advantage value and opportunity cost was incomplete and inaccurate, with a total amount of more than 1,879 billion VND.

The Government Inspectorate has recommended transferring two cases of financial and land management violations, which show signs of causing losses to the state budget at the parent company and subsidiaries of the Construction Mechanical Corporation (Coma) and the Vietnam Water and Environment Investment Corporation (Viwaseen), to the Ministry of Public Security for investigation and handling.

Regarding this recommendation, the Deputy Prime Minister directed the inspection agency to implement it within its authority and in accordance with legal regulations.

The construction industry's 'big guy' 'missed' thousands of billions of dong when equitizing. The Government Inspectorate pointed out many violations in land management and use, and finance when implementing the arrangement and equitization of state-owned corporations under the Ministry of Construction.

The Government Inspectorate has proposed transferring the files of two violations in the equitization of the construction industry related to subsidiaries of Coma Corporation and Viwaseen Corporation under the Ministry of Construction to the Ministry of Public Security for investigation and handling.

Inspectors exposed the "handshake" in transferring the Golden West project . Coma Corporation and Vietnam Trade Development Joint Stock Company (Vietradico) "joined hands" to cooperate in business development of the project on lot 2.5HH Le Van Thiem (Golden West).

Source