NA Committee requests audit at PetroVietnam, EVN and Petrolimex

NA Committee requests audit at PetroVietnam, EVN and Petrolimex

Besides eight state groups which will be audited in 2013, at the proposal of the State Audit Agency, the National Assembly’s Finance Committee on September 12 requested audits of three other groups, which have many issues of public concern. They are the Vietnam Oil and Gas Group (PetroVietnam), the Electricity of Vietnam (EVN) and the Oil and Gas Import-Export Group (Petrolimex).

Strengthening audits at ministries, sectors, state-owned corporations and commercial banks is an important goal set by the State Audit Agency in 2013 in a plan which was submitted to the National Assembly on September 12.

The 2013 Audit Plan is the second content discussed in the first day of the 11th session of the National Assembly Standing Committee on September 12.

State Chief Auditor Dinh Tien Dung said that next year, the State Audit Agency would strengthen auditing of objects related to the restructuring of the economy, especially the projects serving the management and implementation of restructuring public investment.

The State Audit Agency will focus on inspecting state-owned economic corporations, state-owned commercial banks that serve the restructuring of the economy associated with innovation of growth model. Specifically, the agency will audit all corporations, commercial banks in the period from 2013 to 2015 to timely provide information for restructuring activities.

In addition to auditing the annual financial statements of the Bank for Social Policies, Deposit Insurance of Vietnam under the provisions of the Government, the State Audit Agency will work at 29 units, including 8 economic groups (four folds over 2012) in 2013.

The audited agencies will have the units which are audited in 2012, to assess their financial situation, management and production efficiency, especially the effectiveness of their investment in non-core businesses in order to make recommendations to the Government and the National Assembly to direct the restructuring.

The audit agency will also assess the conduct of the monetary policy, which focuses on the management of interest rate, foreign exchange rate, refinancing loans; evaluate the use of the state foreign exchange reserves fund and credit activities (overdue loans). The results of the implementation of some solutions to solve difficulties for business will also be content for audit at state-owned corporations and state-owned commercial banks.

Along with the business sector, the State Audit Agency will work at the ministries, sectors and provinces which have not been audited in 2012 and a number of ministries and agencies that are audited in 2012, but having large-scale budget.

The major fields for audit in 2013 will consist of the use of capital from the government bonds in the period of 2010 - 2012; health insurance policies for the poor; land use and management, real estate, housing and urban development.

In addition, in 2013, the State Audit Agency will continue auditing the Deposit Insurance Fund, the Fund for Science and Technology Development in 2011-2012.

Examining the State Audit Agency's 2013 plan, the NA Committee for Finance and Budget recommended the agency to rotate audit over the agencies that use the state budget, but avoid creating a precedent of auditing one agency every two years and to give priority to annually audit the ministries, agencies, localities that have large budget spending and revenues.

For the corporate sector and banking and financial institutions, the Committee proposed to focus audit on large-d corporations and groups using a lot of state capital and assets, and produce exclusive goods that highly affect production and life, such as electricity, coal, petroleum ... from which to make comprehensive assessment to help the National Assembly, the Government have reasonable policies in the process of implementing the project to restructure state-owned enterprises.

The Committee also requested the State Audit Agency to focus its efforts in auditing the monetary policy, the process of merger and restructuring of commercial banks, the financial situation of State-owned commercial banks after restructuring.

In addition to the subjects mentioned in the draft audit plan 2013, the Committee proposed to make audit at loss-incurred businesses, those that face risks of disruption and businesses that had plummeted business results in recent years.

The committee also requested the State Audit Agency to add to the audit plan in 2013 a number of state-owned economic groups with newly emerging issues that are the public concerns, for example PetroVietnam, EVN and Petrolimex.

For financial and banking institutions, the NA inspection agency asked the audit agency to focus on evaluating the effectiveness of the monetary and credit policies; the trade and management of foreign exchange and interest rate; bad loans; the use of capital granted by the State Bank of Vietnam for credit institutions; the cash flow after the merger; the implementation of the current regulations on capital use of state-owned commercial banks and financial joint stock companies.

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