State-owned firms misused funds: MoF
State-owned firms misused funds: MoF
An inspection of 24 State-owned economic groups and corporations has revealed violations in the management and use of the business arrangement support funds and in investments in other firms.
The inspection by the Ministry of Finance found that as of the end of June, 10 corporations had not paid into the business arrangement support fund, amounting to a total of VND225 billion (US$10.6 million). The ministry said that one of the main causes for the delay in payment was that the corporations were facing financial difficulties.
Ten corporations reportedly used the fund for wrong reasons. At the end of June, the unrecovered amount was VND589 billion ($27.8 million). The ministry's inspectors proposed that more than VND800 billion ($37.7million) should be collected for the fund.
In addition, 10 corporations proposed to pay a combined VND551 billion ($25 million) to the State budget.
Besides the violations in the use of the fund, the ministry's inspectors also found loose management of State-owned economic groups and corporations' investments in other firms.
The 24 corporations which were inspected invested a total of VND48.4 trillion ($2.28 billion) in 662 other domestic firms. The profits or dividends which needed to be collected, as of June 30, at 23 State-owned economic groups and corporations amounted to VND748 billion ($34 million).
To tackle these problems, the ministry's inspectors proposed amendments to the Law on Enterprise. The proposals included setting deadlines for profit allocation and instructions for dividends paid in shares.
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