BY THE END OF 2023, BAD DEBT MAY REACH 1,000 BILLION VND
Because the management board of the My Dinh National Sports Complex (complex) in the previous term (2012 - 2017) committed many violations in public asset management, and implemented many investment cooperation projects with many unusual signs, it led to huge losses for the state budget. The most serious consequence of the violations (stated in the conclusion of the Government Inspectorate, announced in 2021) is that the complex currently owes a "huge" amount of tax that the unit is completely unable to pay. For this reason, the complex has had its enforcement measures changed one after another by the tax authority.
My Dinh Stadium - a major cultural and sports institution in Vietnam - is facing huge financial difficulties.
At first, the tax authority enforced the collection of invoices, but recently it has switched to enforcing accounts. Reasons for enforcement: taxpayers owe taxes, late payment of taxes, overdue tax payment, expired tax payment extension, failure to comply with administrative penalty decisions according to the provisions of the Tax Administration Law and of competent state agencies. The tax authority requested the bank to deduct money directly from the complex's account. On December 8, the complex's leader said that the debt by the end of July 2023 had reached VND902 billion and if not paid in full, this amount would generate bad debt, up to about VND1,000 billion.
GIVEN THE GREEN LIGHT, BUT…
Regarding the financial issue of the complex, as Thanh Nien reported, in December 2023, the Ministry of Culture, Sports and Tourism issued a written decision to grant 100% financial autonomy to this unit from 2023 to 2025. The State will not support or provide regular expenses. Funding for ordering public career services using the State budget: none. Fee revenue retained for regular expenses: none.
Before receiving this decision, the complex had developed a project to use public assets, in which it reported: "The complex will implement a business plan in accordance with the provisions of the Law on Management and Use of Public Assets 2017. Management and use will not affect the performance of functions and tasks assigned by the State; will not cause loss of ownership of public assets; will preserve and develop capital and assets assigned by the State". The Ministry of Culture, Sports and Tourism has agreed to allow the complex to exploit part of this project, and requires the unit to comply with the provisions of the law.
… RED BOOK DOES NOT ALLOW
The big problem is that the complex is falling into a vicious circle because in some related documents, the complex is not allowed to make money on the projects that the unit manages. In 2007, based on the decision of the Minister, Chairman of the Sports and Physical Training Committee, the Hanoi People's Committee issued a land use right certificate (red book) for the complex, in which the purpose of using the area to build My Dinh Stadium is nearly 225,000 m², and the area to build the Aquatic Sports Palace is 57,000 m². In particular, the red book also states that these two types of land are both sports facilities land, not allowed for business.
The Ministry of Culture, Sports and Tourism requires the complex to be absolutely financially autonomous, but other documents from relevant agencies do not allow the complex to do business. So is it illegal to rent out My Dinh Stadium to organize football matches as it has been doing up to now (except for political tournaments hosted by the sports industry such as the SEA Games)? Or is renting out the Water Sports Palace for people to practice similar?
In order for the complex to be able to support itself legally and have money to pay its tax debts, the unit must be allowed to do business on the condition that Hanoi City and the Ministry of Culture, Sports and Tourism coordinate and agree to change the land use purpose at the two major projects of the complex (from land for sports to land for services, with business rights). Only then will the complex's business activities be considered legal.
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