After detecting signs of economic violations at the Management Authority of Nghi Son Refinery and Petrochemicals Project, under State-run Vietnam Oil and Gas Group (PVN), the State Audit of Vietnam (SAV) has transferred the results of its inquiry to the Ministry of Public Security for further investigation.

Nghi Son oil refinery is seen in the northern central-coastal province of Thanh Hoa

SAV had audited financial statements and activities related to the management and use of State capital and assets at PVN, which took place in 2017, reported the Vietnam News Agency.

Between 2010 and 2015, the Management Authority of Nghi Son Refinery and Petrochemicals Project kept many term deposit contracts and other agreements out of its accounting books and financial reports.

A combined sum of interest amounting to VND22.1 billion was found at the branches of Military Bank and Ocean Bank in the northern central-coastal province of Thanh Hoa, where the project is located.

The interest sum came from the fund allocated by PVN and the proceeds from the execution of the service contract with Nghi Son Refinery and Petrochemicals LLC, sent to the banks through term-deposit contracts.

The project management authority had placed term deposits at the banks but did not follow up on their financial records. Instead, the authority stated they were non-term deposits to receive the difference in interest, which was found to have violated the Accounting Law.

To cover up this illicit act, the project management authority struck deals with the banks to receive the money in cash and asked them to transfer some of it into personal accounts.

When PVN uncovered the violations, the project management authority and some individuals transferred a combined amount of more than VND8.5 billion to the group’s account, with VND4 billion coming from former head of the authority Nguyen Khac Hiep.

The violations had been committed since 2010. Given the duration and involvement of the parties in the contracts, according to the SAV, the violations could be even more serious.

Therefore, SAV proposed the Investigative Police Agency at the Ministry of Public Security launch a probe into the case so that the violating parties can be penalized in line with prevailing regulations.

SGT