Conclusion of violations in the management of the Farmers Support Fund in Quynh Tan commune, Quynh Luu district

Nghe An Provincial Farmers' Association issued Conclusion No. 06/KL/HNDT (dated May 21, 2018) stating that during the period of 2008 - 2010, the Farmers' Support Fund of Quynh Tan commune, managed by Mr. Ho Minh Mau - former Chairman of the Farmers' Association (now Chairman of the People's Committee of Quynh Tan commune), had a number of violations and shortcomings, such as: The Association did not organize meetings to review loan requests, did not hold meetings of the Commune Farmers' Association Executive Committee to consider lending decisions according to regulations; in which many households borrowed many times and the amount exceeded the regulations. A typical case is Mr. Ho Ba Uyen who was able to borrow 35 times with the principal amount of more than 816 million VND.

Headquarters of the People's Credit Fund of Quynh Tan commune. Photo: Thao Nguyen

Also in the period 2008 - 2010, the People's Credit Fund of Quynh Tan commune established loan records and loosely managed them, lacking transparency. Many households were on the list of borrowers of the People's Credit Fund of the commune but did not have loan records at the fund; some loan forms did not have the signature of the Head of the Fund Management Board, the fund accountant but still established payment forms and the treasurer still disbursed the loan money, which is a violation of financial management principles.

In addition, the Quynh Tan Commune Farmers' Association's capital mobilization by depositing savings is contrary to the regulations and guidelines of the Central Committee of the Vietnam Farmers' Association and the Ministry of Finance. In particular, the Fund Management Board in the period of 2008 - 2010 mobilized capital through a loan contract of 71 taels of gold, but then the price of gold increased, so it had to compensate for a loss of more than 108 million VND; the lending process did not strictly check the borrowers, leading to overdue debt and bad debt with the amount of 782,059,000 VND.

During the period of 2010 - 2017, the Farmers' Association of Quynh Tan commune, chaired by Ms. Nguyen Thi Ha and concurrently Head of the Farmers' Association Fund Management Board, continued to commit many violations, specifically: The minutes of signing the Farmers' Association Fund for the period of 2010 - 2017 when receiving the handover from the Fund Management Board for the period of 2008 - 2010, discovered violations and shortcomings in the management and operation of lending money to the Farmers' Association Fund that had reached overdue debts and bad debts, but did not report to the Party Committee, the People's Committee of the commune and the superior Association for timely direction to resolve and remedy.

Especially after the conclusion of the inspection of the People's Credit Fund of Quynh Tan commune on May 26, 2012 and Notice No. 04-TB/HNDH dated April 1, 2014 of the Standing Committee of the Farmers' Association of Quynh Luu district on the cessation of operations and eventual elimination of the People's Credit Fund at the commune level, according to the Charter of the Vietnam People's Credit Fund issued on November 15, 2011. However, the Farmers' Association and the Management Board of the People's Credit Fund of Quynh Tan commune did not report to the Party Committee and the People's Committee of the commune to direct serious implementation, but continued to maintain and mobilize capital, and lend capital in violation of regulations. The People's Credit Fund had an overdue debt of nearly 1.3 billion VND and a bad debt of more than 800 million VND...

With the above violations, the Provincial Farmers' Association recommends that the Standing Committee of the Farmers' Association of Quynh Luu district, the Party Committee and the People's Committee of Quynh Tan commune be responsible for directing the Standing Committee of the Commune Farmers' Association and the Commune Farmers' Association Fund Management Board for the period 2008 - 2010, the period 2010 - 2017 to review and handle the responsibilities of individuals and collectives that have violated the above-mentioned shortcomings seriously and carry out disciplinary action according to the prescribed authority, to be completed before May 31, 2018.