Huge debt, negative equity still has money to bribe

The Investigation Security Agency (Ministry of Public Security) has just completed the investigation conclusion of the case of "Violating regulations on management and use of state assets causing loss and waste; Lack of responsibility causing serious consequences; Giving bribes; Receiving bribes; Taking advantage of positions and powers to influence others for personal gain" occurring at Xuyen Viet Oil Trading, Transport and Tourism Company Limited and a number of related agencies and organizations.

The Security Investigation Agency said that Mr. Le Duc Tho, former Secretary of the Ben Tre Provincial Party Committee, received bribes of more than 27 billion VND, gifts of a Patek Philippe watch worth more than 9.8 billion VND, a Mercedes Benz S450 Luxury car worth more than 6.6 billion VND...

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Xuyen Viet Oil has brought many officials to justice. Photo: LB

In this case, Mr. Tran Duy Dong, former Director of the Domestic Market Department, Ministry of Industry and Trade (before being prosecuted, he was Deputy Director of the Trade Promotion Department - Ministry of Industry and Trade) was also proposed to be prosecuted for the crime of "Receiving bribes".

In May 2024, the Ho Chi Minh City Tax Department announced the list of tax-indebted enterprises for May 2024. Topping the list of tax-indebted enterprises is Xuyen Viet Oil with a debt of nearly VND 1,740 billion.

On the afternoon of July 6, 2024, at the regular Government press conference, Major General Hoang Anh Tuyen, then spokesperson of the Ministry of Public Security, said that Ms. Mai Thi Hong Hanh - Director of Xuyen Viet Oil - and her accomplices had illegally used money from the Petroleum Price Stabilization Fund and environmental protection tax for business and personal purposes; established relationships and gave bribes.

The conclusion of the Government Inspectorate on petroleum management announced on January 4, 2024 shows that: Xuyen Viet Oil Trading, Transport and Tourism Company Limited has negative equity of 462 billion VND; owes the State 1,246 billion VND in environmental protection tax; owes the Price Stabilization Fund 212 billion VND,... the company initially owes 1,920 billion VND.

However, the company still owes director Mai Thi Hong Hanh 2,978 billion VND (Ms. Hanh was arrested in September 2023 - PV)

According to the report of the Supreme People's Procuracy, regarding the violation of regulations on management and use of state assets causing loss and waste occurring at Xuyen Viet Oil Company and several provinces and cities, during the search, the Security Investigation Agency temporarily seized 134 savings books with a total amount of 1,320 billion VND....

How is Xuyen Viet Oil licensed?

Xuyen Viet Oil Company was first granted a license to import and export petroleum on August 22, 2016. The company was re-granted a license to import and export petroleum on November 19, 2021.

When licensed by the Ministry of Industry and Trade, the company has all the conditions as prescribed in Article 7 of Decree No. 83/2014/ND-CP. Accordingly, regarding petroleum agents (according to regulations, enterprises need to have 40 agents), Xuyen Viet Oil Company has 49 agents including 17 agents directly signed agency contracts by the parent company Xuyen Viet Oil and 32 agents belonging to the subsidiary of Xuyen Viet Oil Company (Dai Dong Xuan Company).

However, the inspection conclusion of the Ministry of Industry and Trade pointed out that: To meet the conditions for the distribution system, there are 37 retail agents of Dai Dong Xuan Joint Stock Company that Xuyen Viet Oil Company declared as belonging to its system through the parent-subsidiary company mechanism. Specifically, Xuyen Viet Oil contributed over 50% of capital to Dai Dong Xuan Company.

However, it is worth mentioning that, on the same day the Ministry of Industry and Trade granted the license for petroleum import and export, Xuyen Viet Oil Company and Dai Dong Xuan Joint Stock Company signed a document to cancel the share transfer contract and at the time of cancellation, "the two parties had not yet performed any rights and obligations of the signed contract".

In conclusion with Xuyen Viet Oil, the inspection team of the Ministry of Industry and Trade recommended that the Domestic Market Department promptly correct errors in the appraisal and issuance of petroleum business licenses and inspect and supervise the maintenance of petroleum business conditions.

At the end of the inspection, the Ministry of Industry and Trade recorded that at the time of the inspection, Xuyen Viet Oil Company had 10 affiliated retail gasoline stores and 18 retail gasoline agents. Xuyen Viet Oil Company was administratively sanctioned and had its gasoline export and import business license revoked for 1.5 months for violating the regulations on not maintaining and meeting the required number of gasoline retail agents as prescribed above.

In 2023, the Ministry of Industry and Trade will continue to inspect compliance with legal regulations in petroleum business for Xuyen Viet Oil Company.

At the time of inspection, the Ministry of Industry and Trade recorded that Xuyen Viet Oil Company had 10 retail gasoline stores. However, at the time of inspection, 3 stores had expired Certificates of eligibility to retail gasoline and 20 retail gasoline agency contracts signed with gasoline retail agents that were still in effect.

On the basis of Xuyen Viet Oil Company continuing to fail to maintain and meet the conditions for a key trader in petroleum business, on August 11, 2023, the Ministry of Industry and Trade issued Decision No. 2081 revoking the Petroleum Export and Import Business License of Xuyen Viet Oil Company.

Director of Xuyen Viet Oil used money from the petrol price stabilization fund to bribe Ms. Mai Thi Hong Hanh - Director of Xuyen Viet Oil and her accomplices illegally used money from the petrol price stabilization fund and environmental protection tax for business and personal purposes; established relationships and gave bribes.