Pursuant to Decision No. 511/QD-KTNN dated March 15, 2024 of the State Auditor General on auditing the Financial Statements and activities related to the management and use of state capital and assets in 2023 of the Vietnam National Coal - Mineral Industries Group, the State Audit (SA) conducted an audit at the Vietnam National Coal - Mineral Industries Group (TKV) from March 18 to May 16.

The audit results show that there are still bad debts, requiring provisions as of December 31, 2023. In some cases, the reconciliation of receivables and payables is incomplete; there are cases of non-compliance with internal regulations in granting debts to customers without bank guarantees; some units have not issued regulations on managing receivables...

Regarding long-term financial investments, the State Audit Office said that TKV's parent company still has some ineffective financial investments that pose potential financial risks. These include investments in Thanh Hoa Co Dinh Chromite JSC, Cambodia - Vietnam Alumina Joint Venture Company, Vinacomin Laos LLC, Thach Khe Iron JSC, Steung Treng Mineral Joint Stock Company, etc.

Production site of Tuyen Than Cua Ong Doan Trung.jpg
Photo: TKV

TKV Minerals Corporation - JSC still has some financial investments that have not yet paid dividends in 2023 because the profit after distribution is not enough to pay dividends or there is profit but there is still accumulated loss.

In addition, according to the State Audit Office, there are also cases of long-term unused inventories, inventories higher than internal regulations; unsold and unrecovered capital for inventories recommended from previous years; inventory of coal inventories but not simultaneously taking samples to determine the quality of coal inventories by type.

Dong Trieu Thermal Power Company TKV - Branch of TKV Power Corporation has not yet measured and inventoried the volume of fly ash and slag; has not yet clarified the reason why some mining equipment and transportation equipment have actual fuel consumption higher than the unit's norm....

There is also a situation where fixed assets (TSCD) are put into use but the value has not been settled, not accounted for, and not inventoried and monitored in the accounting books in a timely manner. Regarding the development and implementation of internal regulations, there are still cases: some machinery and equipment brought into the overhaul center exceed the unit's equipment repair quota; the fixed asset code has not been assigned; the asset inventory record does not contain complete information. There is also a selection workshop with an actual capacity lower than the designed capacity...

Regarding costs and production and business prices, economic and technical norms have not been fully issued; the loss rate for coal transportation according to each type of vehicle and actual humidity applied has not been developed and issued...

Regarding payments to the State budget, some units have not declared value added tax (VAT) on gifts; under-calculated personal income tax; under-calculated environmental protection fees; have not excluded some expenses when calculating corporate income tax; under-calculated resource tax or have not declared and settled resource tax as prescribed for some types of minerals;...

Through audit, the state budget revenue increased by more than 109 billion, deducted VAT decreased by 33 million VND, reduced the value of payment and settlement of audited projects by 2.01 billion VND and other handling of audited projects by 5.9 billion VND.

Through the audit of a sample of bidding packages for the procurement of goods, repair of fixed assets, and outsourcing of services at audited units, it was found that there are still problems in the selection of procurement methods; making estimates, preparing bidding documents; posting information, selecting suppliers, sending invitations to bid, selecting contractors; acceptance, payment, etc.

Regarding mineral resource exploitation, according to the State Audit Office, in cases where the actual exploited reserves are different from the reserves in the construction drawing design or the procedures for adjusting the mineral exploitation license and paying the right fee for the upgraded resource reserves have not been completed...