More oil giants violate regulations on the Price Stabilization Fund

Many businesses violate

According to VietNamNet's investigation, as of September 15, there were 5 businesses that transferred money to the Petroleum Price Stabilization Fund incorrectly.

Those enterprises are Hai Ha Waterway Transport Company Limited; Dong Phuong Petroleum Joint Stock Company; Thien Minh Duc Group Joint Stock Company; Tay Nam SWP Petroleum Company Limited and Trung Linh Phat Company Limited.

In addition, there are 3 enterprises that do not have activities of setting up and using the Petroleum Price Stabilization Fund. They are Dong Phuong Petroleum Joint Stock Company; Trung Linh Phat Company Limited; and Apollo Oil Joint Stock Company.

Dong Phuong Petroleum Joint Stock Company. (Photo from company website)

Meanwhile, the main traders of petroleum are obliged to set aside the Price Stabilization Fund. This has been stipulated in Decree No. 83/2014/ND-CP dated September 3, 2014 of the Government on petroleum trading and Decree No. 95/2021/ND-CP.

According to the provisions of Circular 103/2021 on the management of the Petroleum Price Stabilization Fund, the focal enterprise is responsible for publicly announcing on the enterprise's website or on the mass media the Fund balance.

However, on the website of Dong Phuong Petroleum Joint Stock Company, as of last night (September 27), the report on the Petroleum Price Stabilization Fund was last updated in May 2023, with a balance of more than 13 billion VND. This morning, the company's website displayed information on the Fund's balance up to August 2023. Meanwhile, the websites of the companies: Hai Ha Waterway Transport Co., Ltd., Thien Minh Duc, Trung Linh Phat did not display information on the Petroleum Price Stabilization Fund.

In light of the above situation, the Ministry of Finance has requested the Ministry of Industry and Trade (Domestic Market Department) to continue reviewing information on business activities of key petroleum traders; including the use of the Price Stabilization Fund according to the management announcement of the Ministry of Industry and Trade.

In case of arising issues related to business operations that affect the Petroleum Price Stabilization Fund, the Ministry of Finance requests the Ministry of Industry and Trade to proactively review according to its authority and at the same time inform the Ministry of Finance to coordinate according to its assigned functions and tasks.

Previously, according to the representative of the Ministry of Industry and Trade, a number of petroleum key enterprises were sanctioned by the Ministry of Finance for administrative violations regarding the Price Stabilization Fund. Most of the violations were due to failure to transfer the Fund balance to bank accounts.

The latest report on the Petroleum Price Stabilization Fund of Dong Phuong Petroleum Joint Stock Company was in May 2023 (Screenshot on the evening of September 27).

Cannot "offset" corporate debt from Price Stabilization Fund account

According to the reflection of some enterprises, when the enterprise has a debt balance at the commercial bank - where the enterprise opens a Price Stabilization Fund account, the bank automatically deducts debt from other accounts of the enterprise with positive balances (including the Petroleum Price Stabilization Fund account) to deduct the enterprise's debt.

Hai Ha Waterway Transport Company Limited is a business that had its debt automatically deducted by the bank from the Petroleum Price Stabilization Fund of nearly 270 billion VND. The Ministry of Finance has requested the bank to comply with the regulations in Decree 95. That is, the main petroleum trader is only allowed to use the Petroleum Price Stabilization Fund according to the petroleum price management announcement of the Ministry of Industry and Trade, and is not allowed to use the Petroleum Price Stabilization Fund for other purposes.

Some argue that banks have the right to deduct debt from the Price Stabilization Fund because they are all accounts in the name of businesses.

However, a representative of a large petroleum enterprise shared: The account of the Petroleum Price Stabilization Fund is completely separate from the other accounts of the enterprise; after setting up the account, a report must be sent to the Ministry of Finance and the Ministry of Industry and Trade. Enterprises must also regularly report the balance of the Price Stabilization Fund account and send statements to the two ministries.

Therefore, it is impossible for banks to be allowed to "offset" businesses' debts from the Petroleum Price Stabilization Fund and cannot be unaware that the account is for the Fund.

"Unless the business intentionally confuses the accounts. In that case, they will be held responsible," he shared.

Lawyer Truong Thanh Duc, ANVI Law Firm, affirmed: The bank could not have been unaware that the account was for the Petroleum Price Stabilization Fund. Therefore, the bank will have to return the amount of debt to the Fund.

Before Circular 103/2021 took effect from January 2, 2022, Joint Circular 39 on price calculation method, price management mechanism, and Petroleum Price Stabilization Fund applied from November 1, 2014 to January 1, 2022 had specifically stipulated the responsibilities of commercial banks - where key traders open Fund accounts.

Accordingly, on the 1st of every month, commercial banks - where key traders open deposit accounts for the Petroleum Price Stabilization Fund - must send statements of transactions arising from the Fund's deposit accounts to the Ministry of Industry and Trade (Domestic Market Department) and the Ministry of Finance (Price Management Department). In which, clearly show the Fund balance at the beginning of the reporting period; the amount set aside for the Fund in the reporting period; the amount used for the Fund in the reporting period...

At the end of the fiscal year, the main trader and the commercial bank are responsible for synthesizing and reporting on the situation of setting up and using the Price Stabilization Fund... to the Ministry of Industry and Trade - Ministry of Finance.

The above bases show that the bank - where the petroleum wholesaler opens an account - must clearly know which account number of the enterprise is for the Price Stabilization Fund.

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