Many construction industry 'giants' involved in violations

VTC NewsVTC News08/07/2023


According to the inspection conclusion of the Government Inspectorate on financial handling and enterprise valuation for equitization, at some corporations there are still many receivables and payables that have not been reconciled and confirmed, amounting to more than VND 5,690 billion.

Notably, some companies such as Song Da, Licogi, Fico, Lilama, Vietnam Water and Environment Investment Corporation (Viwaseen), VNCC determined the enterprise value incompletely, inaccurately, not in accordance with regulations, lacking deposit interest, brand value, depreciation of tools and equipment, debt cancellation not in accordance with regulations... with a total amount of 23.3 billion VND.

Enterprises such as Vietnam Cement Corporation (Vicem), Licogi Corporation (Licogi), Vietnam Water and Environment Investment Corporation (Viwaseen) when determining the enterprise value for equitization have calculated the value of commercial advantages and opportunity costs incompletely and inaccurately, with a total shortfall of about VND 1,879 billion.

The Government Inspectorate discovered violations by Vietnam Cement Corporation in equitization.

The Government Inspectorate discovered violations by Vietnam Cement Corporation in equitization.

Specifically, Licogi undercalculated about 348 billion VND in the Thinh Liet new urban area project; Viwaseen undercalculated 23.8 billion VND when transferring the An Thinh 6 urban area project; Vicem, when determining the enterprise value, did not calculate the value of commercial advantages for the right to exploit minerals of limestone and clay mines of about 1,507 billion VND.

In the financial handling process for equitization of Vicem, Vicem Hai Phong, Vicem has not processed and paid the difference of 3,011 billion VND between equity and charter capital, which is not in accordance with regulations.

According to the inspection conclusion, 10/16 corporations under the Ministry of Construction are managing and using about 1,348,172m2 of land, but during the equitization process, some corporations have not completed the review and arrangement of real estate assets, and have not completed the land use plan after equitization to submit to competent authorities for approval. Some cases of land use plans are not in accordance with local land use planning.

Many corporations do not provide complete information, records, and land documents as requested by local authorities.

Some localities have received written requests from the Ministry of Construction and corporations but have not yet provided written comments on land use plans and have not approved land prices to determine land asset values ​​for business valuation.

In addition, some corporations, although divesting state capital, still have investments outside the core business sector, which are at high risk of loss, with an amount of about 147 billion VND.

To handle violations discovered during the inspection of equitization of corporations under the Ministry of Construction, the Government Inspectorate recommended that the Prime Minister direct the corporations to promptly rectify and overcome existing shortcomings and violations under the responsibility of the unit.

The Government Inspectorate also recommended that the Prime Minister direct the corporations to focus on reviewing and handling according to regulations the financial violations mentioned in the inspection conclusion with a total amount of about 5,690 billion VND.

Regarding the amount of 4,529 billion VND at Vicem, the Government Inspectorate requested the Ministry of Construction to report to the Prime Minister to direct the collection and payment of about 2,910 billion VND to the budget.

Ngoc Vy


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