Inspector General: Will control income of people in positions

The recent inspection conclusions are issues of special public concern and are surprising information for the public.

Resolving complaints and denunciations, preventing corruption, the areas considered the most sensitive and touching, are the regular tasks of the Government Inspectorate. The conclusions issued by this agency often shake public opinion. The recent inspection conclusions of the Government Inspectorate are issues of special public interest and are information that surprises the public.

In the column Citizens ask, Ministers answer today (January 26), Government Inspector General Huynh Phong Tranh will answer people's questions about the latest announcements of this agency.

EVN invested more than 45,000 billion in violation of regulations, calculated a welfare project worth over 60 billion into electricity prices.

Reporter: Thank you, Inspector General, for accepting to participate in our column. Dear Inspector General, the announcements of the Government Inspectorate about the recent inspection of Vietnam Electricity Group (EVN) have caused a stir in public opinion. There are a number of letters from citizens sent to the column that are especially interested in the issue of EVN inspection.

They asked: Dear Inspector General, we are very concerned about the capital that Vietnam Electricity Group EVN invested outside the parent company, up to 121 trillion VND, a very large amount of money, while EVN continuously complains about the lack of investment capital.

So is this complaint of EVN unreasonable? Why is there excess money to invest outside the parent company but it is said that there is a lack of capital to invest in building power plants, or is it because the investment profit rate of the electricity industry is too low, the investment rate outside the parent company is too high that EVN has to do so? During the inspection, will these unreasonable things be clarified? Could the Inspector General please inform us?

Government Inspector General: During the inspection of Vietnam Electricity Group, the Government Inspectorate clarified many issues, including the investment outside the parent company of 121 trillion VND. It can be said that in recent years, Vietnam Electricity Group has had very effective performance, contributing to the socio-economic development of the country, increasing power sources. Especially contributing to stabilizing the macro-economy.

Government Inspector General Huynh Phong Tranh (Photo: KT)

But through inspection, we discovered many violations. Of which, 121 trillion VND was invested outside the parent company. For EVN, the investment of 121 trillion VND exceeded the charter capital by 45 trillion VND. If we talk about regulations, investing outside the industry does not violate the provisions of the law. Because the law stipulates that state-owned enterprises have the right to invest in many industries and fields. Therefore, it can be said that investing outside the parent company leads to the following consequences: first, it disperses capital sources and investment is not concentrated in the main industry.

Second, the rate of return on investment outside the main business line is low. Therefore, after concluding the inspection, the Prime Minister requested the Ministry of Industry and Trade to rectify this issue, focusing on investing in the main business line to have capital to invest in the electricity industry, and effectively implement production and business.

Up to now, during the inspection process and after the inspection conclusion, implementing the Prime Minister's opinion, Vietnam Electricity Group has implemented the divestment roadmap according to the roadmap prescribed by the Government. I think, EVN has seen the problem and is implementing divestment and investing in the main business lines.

Reporter: Also a question related to the electricity industry: Dear Inspector General, the information that the Government Inspectorate announced about Vietnam Electricity Group including 600 billion VND to build villas, tennis courts, swimming pools into the cost of 6 electricity projects has made the public very upset. EVN then lent money to Pha Lai Thermal Power Plant at a low interest rate, then borrowed a large amount of money from this plant at 8 times the lending interest rate.

Dear Inspector General, is there anything shady in lending at a low rate, then borrowing back from the same place at an interest rate 8 times higher? And are these costs included in the electricity price and passed on to the people?

Government Inspector General: The Government Inspectorate has concluded and clarified that the investment in 6 projects is for workers' housing, expert housing, welfare facilities such as tennis courts, swimming pools and other sports facilities. We analyzed that the exact figure for these 6 projects is 595 billion VND. After the inspection concluded, there was 1 project over 60 billion VND that was included in the cost price to calculate the cost price, included in the electricity price. The remaining 5 projects are under construction and put into use.

After the conclusion of the inspection, the Government directed the Ministry of Finance and the Ministry of Industry and Trade to review which contents and investments are included in the cost price to be included in the cost price for calculation of electricity price. The contents that are not included in the cost price will be included in the welfare fund to invest in similar projects mentioned above. In short, this is not the case that all 595 billion invested and included in the cost price of electricity, but currently there are 5 projects that have not been settled. In the settlement process, inappropriate items will be eliminated and not included in the cost price.

Regarding the loan of 2,350 billion VND of Pha Lai Thermal Power Plant, this is the temporarily idle capital of Pha Lai Thermal Power Company, therefore, this activity affirms that it is not a credit activity but mobilizes internal resources within Vietnam Electricity Group.

For Vietnam Electricity Group to do this is completely normal, contributing to investment in the electricity industry. We have reviewed and found that it does not violate the law, we have reported to the Prime Minister that this activity does not violate credit activities, so we do not include the conclusions of violations by Vietnam Electricity Group.

Inspection results at Agribank to be announced soon

PV: The Bank for Agriculture and Rural Development is one of the largest banks, but there have been too many violations in the past. The Government Inspectorate has been conducting inspections at this bank for a long time, so why is it still taking so long without announcing the results?

In this column "People ask, Minister answers", can the Inspector General tell us about the inspection process of the Bank for Agriculture and Rural Development and the results?

Government Inspector General: The inspection of the Vietnam Bank for Agriculture can be said to be quite long, an inspection lasting more than a year. For the reasons, firstly, the Vietnam Bank for Agriculture is the largest state-owned commercial bank. It has outstanding mobilized capital of up to 431 trillion VND and charter capital of more than 21 trillion VND.

Second, the Agricultural Bank has many branches and operates in a very wide area. Therefore, it takes time to have an inspection conclusion. Recently, we have inspected, concluded and received approval from the Prime Minister. There are signs of violations, firstly, credit activities are not in accordance with State regulations, violating the Credit Law in the form of procedures, disbursement, and mortgage of assets not in accordance with regulations. Second, in the organization, management and operation are loose, causing consequences.

Third, there are signs of law violations. Therefore, recently, the Vietnam Bank for Agriculture has been clarified by the authorities and recommended to handle a number of cases. In particular, during the inspection in 2012, although the Government Inspectorate has not yet concluded the entire inspection of the Vietnam Bank for Agriculture, we discovered a case of law violation, which is the foreign-invested Lifepro Company in Ninh Binh violating the Law on Credit Institutions, with a loan capital of 3,500 billion VND and the interest capital up to the end of 2012 was 300 billion VND. In short, the outstanding credit balance is up to 3,800 billion VND.

The violation is of a fraudulent nature, causing consequences and appropriating state assets. We have transferred the case to the investigation agency and have prosecuted and temporarily detained nearly 30 subjects, including bank officials, customs officials and customers. Among them is 1 leader who is the branch director and 2 leaders of the Bank for Agriculture and Rural Development. Currently, this case is being investigated to clarify and prosecute and handle according to the provisions of law.

PV: How will the violations announced by the Government Inspectorate be handled? Will the Government Inspectorate continue to monitor the issues handled after the inspection and will this information be made public for the people to know?

Government Inspector General: Regarding the announcement of the inspection, the Prime Minister has co-signed the Government Inspectorate's inspection conclusion. On January 23, we announced it at the unit, that is, at the Bank for Agriculture and Rural Development. We will continue to announce it to the mass media. After this program is broadcast, other mass media will be made public. During the inspection process, we asked the Prime Minister to transfer 15 cases to the investigation agency so that the investigation agency can continue to clarify signs of violations and transfer 59 cases to the State Bank for the Bank to conduct inspection and supervision according to the Law on Credit Institutions. If there are violations, they will be handled according to regulations.

There will be a Decree on income control of people in positions of power.

Reporter: A question on the topic of anti-corruption. Mr. Inspector General, we see that the Anti-Corruption Law is formal but not substantial and ineffective. For example, the declaration of assets of officials and people in high positions... According to the Inspector General, has the declaration of assets been effectively implemented? If not, what will the Government Inspectorate do to make this work more substantial and effective in the future?

Government Inspector General: Asset declaration is an important preventive measure among preventive measures. Therefore, after the amendment of the Anti-Corruption Law, there are many new points, including the new point of asset declaration and disclosure. And recently, the Politburo issued Directive No. 33, assigning tasks and responsibilities to Party committees and heads of agencies and units to declare and disclose assets.

For this public declaration of assets, all previous asset declarations must be re-declared in full, cumulatively from the past to the present. If there are additional assets, the additional assets must be explained. After the declaration, it must be made public at the place of work and regular work of the declaring subject.

Third is to assign responsibility to the head of the direct manager of the staff to conduct verification when there are signs of dishonesty or slow declaration.

Fourth is the regulation on handling officials who make dishonest declarations, make late declarations and have violations in declarations.

In short, asset declaration is an important and necessary measure to prevent, stop and publicize the income of officials and civil servants subject to declaration under the amended Law on Anti-Corruption. In the near future, in addition to asset declaration, the Government Inspectorate is drafting a Decree for the Government to promulgate on controlling the income of people holding positions of power under the amended Law on Anti-Corruption.

PV: Thank you, Government Inspector General!./.

According to vov