VietNamNet Bridge – The 2009 audit report, published yesterday, Aug 30, by the State Audit Office of Viet Nam (SAV), revealed many violations in financial management.

Workers at the Petro Vietnam Group's Can Tho Petroleum Depot operate an oil supply system. The group is one of 27 State-owned enterprises with profits revealed in the 2009 audit report. (Photo: VNS)
Under the report, more than VND17 trillion (US$814 million) would be handled in total, with an additional sum of more than VND4.9 trillion ($233 million) for the revenue and a reduction of VND2.46 trillion ($177 million) in expenses.

Another sum of VND7.96 trillion ($379 million) would be refunded to the State budget.

According to Deputy State Auditor General Le Minh Khai, violations were found to be common among State-owned enterprises, including in the application of the value added tax (VAT), dishonest reports of expenses, and payment of land use fees.

The financial management agency showed positive signs of improvement but still failed to address many violations.

In addition, the allocation of the State budget was also flawed. Some provinces failed to allocate capital in pace with projects' progress, while others allocated money improperly, including Hai Duong, Ninh Binh and Tra Vinh provinces.

The number of State–owned enterprises going public was low, with only four out of 25 privatised, all of which were audited.

According to SAV, 25 out of 27 enterprises reported profits, maintaining and developing their production during the year. This group included those businesses playing decisive roles in the national economy, such as Petro Vietnam and the Viet Nam National Textile and Garment Group.

However, many corporations were found to have suffered losses, including the Viet Nam Machinery Installation Corporation and Song Hong Corporation, as well as others that were slow in paying taxes.

The report also revealed risks in some banks and credit institutions, reporting a slump in reputation and efficiency compared with 2008.

According to Khai, in spite of the economic recession, the Government's revenue still exceeded about 16.6 per cent compared with the estimated amount in two consecutive years. The Government's expenses were mainly in investments and social affairs.

SAV has been completing an audit of Electricity of Viet Nam, Fuel Price Stabilisation Fund, said Khai.

VietNamNet/Viet Nam News