Financial irregularities at VCCI Nghe An?

(Baonghean) - At the end of March 2015, Nghe An Newspaper received a petition from a citizen requesting clarification of financial irregularities at the Vietnam Chamber of Commerce and Industry in Nghe An (VCCI Nghe An).

The VCCI Nghe An office is located at 1 Le Nin Avenue.

According to the petition, the Nghe An Chamber of Commerce and Industry (VCCI) is a business association with the function and nhiệm vụ (responsibilities) of representing and protecting the legitimate rights and interests of the business community and employers; organizing training in various forms to develop human resources for businesses, helping businesses improve their knowledge and business management capabilities... However, in the past, especially in 2014, the Nghe An Chamber of Commerce and Industry had many irregularities and lack of transparency in financial management. The Head of the Internal Administration Department, who also handled accounting, along with officials in charge of training projects funded by the state budget, created many "fictitious" documents to embezzle public funds. Attached to the petition are numerous photocopies of documents from seminars, conferences, and training courses supposedly organized by the Nghe An Chamber of Commerce and Industry, along with economic contracts, invoices, payment orders, and settlement documents.

To verify the origin of the documents, the petitioner provided all the photocopies of the originals. He stated: "I have worked at VCCI Nghe An for many years, so I always hope that my unit will develop in accordance with its functions and duties, and have a healthy working environment. Recognizing the repeated acts of fabricating documents to withdraw budget funds, which have a negative impact, create resentment among staff, diminish credibility and work efficiency, and deprive members of their rights, I am forwarding this information to Nghe An Newspaper..."

Among the many documents provided, we particularly note the file concerning the "Dialogue Conference between the Tax and Customs Sectors and Businesses in Nghe An Province in 2014," which was organized by VCCI on August 12, 2014, at the Hoa Phuong Do Hotel (Hung Binh Ward, Vinh City) with the aim of resolving some difficulties and obstacles that businesses encountered in their transactions with the Tax and Customs sectors.

According to a report submitted to the Vietnam Chamber of Commerce and Industry (VCCI), the conference was attended by provincial leaders, leaders of the Customs Department, representatives of the Tax Department and many other departments and agencies, as well as numerous businesses in the area, and media outlets. "Thanks to thorough preparation, the conference was very successful." According to the detailed list of payment documents via bank transfer; economic contracts with Hoa Phuong Do Hotel (rental of the conference hall, projector equipment, refreshments during breaks, parking, marketing materials, fresh flowers), and Tuan Tuyet Co., Ltd. (printing documents, stationery, photos, invitations, etc.), VCCI Nghe An spent 36,630,000 VND on the conference. Of this amount, 29,130,000 VND came from the state budget; and 7,500,000 VND was self-funded.

Reports and invoices from the conference dossier "Dialogue between the Tax and Customs Sectors and Businesses in Nghe An Province in 2014".

Following the list of attendees for the conference, we were surprised to learn from several business leaders that they had never been to the Hoa Phuong Do Hotel, let alone attended the "Dialogue Conference between the Tax and Customs Sectors and Businesses in Nghe An Province in 2014". A director of a business specializing in urban development affirmed: "Our industry often deals with government agencies, especially the tax authorities. I remember attending a dialogue conference with the Tax Department in 2014, although I don't remember which organization held it, but it was at the Giao Te Hotel..."

According to Mr. Le Duc Hai, Director of Giao Te Hotel, the Provincial People's Committee organizes a dialogue conference between the Tax and Customs sectors and businesses in the province every year, and the province has the right to choose a suitable location to hold the conference. Giao Te Hotel has had the honor of being chosen by the Provincial People's Committee as the venue for this conference for 6-7 consecutive years. According to records kept at Giao Te Hotel, the "Dialogue Conference between the Tax and Customs Sectors and Businesses in Nghe An Province in 2014" was held by the Provincial People's Committee on the morning of August 11, 2014; the conference was chaired by Mr. Nguyen Xuan Duong, Chairman of the Provincial People's Committee, and all the Vice Chairmen of the Provincial People's Committee. Mr. Le Duc Hai affirmed: "There have never been two 'Dialogue Conferences between the Tax and Customs Sectors and Businesses in Nghe An Province in 2014' in the province..."

In the report on the "Dialogue between the Tax and Customs Sector and Businesses in Nghe An Province in 2014" conference sent by the Nghe An Chamber of Commerce and Industry to the Vietnam Chamber of Commerce and Industry, it was stated: "Attending the conference was Mr. Le Xuan Dai, Vice Chairman of the Provincial People's Committee...", therefore we investigated Mr. Le Xuan Dai's work schedule on August 12, 2014. According to the August 2014 work program of the Provincial People's Committee (currently available on the Nghe An Provincial Electronic Information Portal), on the morning of August 12, the Provincial People's Committee held a meeting of the Steering Committee for promoting civil service reform at the Provincial People's Committee Office, chaired by Mr. Nguyen Xuan Duong, Chairman of the Provincial People's Committee, and Mr. Le Xuan Dai, Vice Chairman of the Provincial People's Committee; on the afternoon of August 12, also at the Provincial People's Committee Office, Mr. Le Xuan Dai chaired a meeting of the Steering Committee on eliminating temporary housing for lonely elderly people. According to the Provincial People's Committee's work program for August 2014, on the morning of August 11th, the Chairman of the Provincial People's Committee and relevant Vice Chairmen attended a dialogue conference with businesses; the Department of Planning and Investment was assigned to prepare the conference, which took place at the Giao Te Hotel.

At the Hoa Phuong Do Hotel, when we requested clarification on the information stated in the economic contract and invoices between this unit and VCCI Nghe An, the hotel accountant cited the reason that the hotel director (Ms. Nguyen Thi Sam - PV) had resigned due to illness; the new director was away on business...

At the VCCI Nghe An office, we met with representatives from the unit: Mr. Doan Duy Khuong, Head of the Representative Office, and Mr. Phan Duy Hung, Head of the Professional and External Relations Department. When asked about the signatures on the documents, Mr. Phan Duy Hung replied: "Those are forged signatures, not my signature." Regarding Mr. Hung's statement, Mr. Doan Duy Khuong said that it was necessary to clarify whether the documents were genuine or not (?!). Mr. Doan Duy Khuong stated: "Because I work on a part-time basis, I cannot closely monitor the activities of VCCI Nghe An. Therefore, there may be errors; we will hold a meeting to clarify and then respond..." The next appointment did not take place because Mr. Khuong was away on a business trip; and Mr. Hung explained over the phone: "The agency has regulations regarding public statements, so I cannot say anything without the leadership's approval. However, I think whoever made the mistake must bear the responsibility..."

As mentioned above, the petitioner provided numerous documents which he claims are "fake" records used to embezzle public funds at the Nghe An Chamber of Commerce and Industry (VCCI). Verification of the documents from the "Dialogue between the Tax and Customs Sectors and Businesses in Nghe An Province in 2014" reveals irregularities within the financial sector at VCCI Nghe An. This matter requires investigation and clarification by the relevant authorities.

Reporters' Team