Investigation underway into 5 units suspected of misusing funds.

The violations relate to the use of state funds, projects, insurance, and financial activities.

At a press conference announcing the 2012 audit report on the 2011 budget year, held on the morning of July 25th, Deputy Auditor General Le Minh Khai stated that, in 2012 alone, through inspection work, the State Audit Office (SAO) discovered five units with signs of irregularities related to the use of funds and corruption, promptly transferring the cases to the investigative agency for clarification and handling according to the law.

Specifically, through auditing projects of the Department of Agriculture and Rural Development of Hung Yen province, the State Audit Office discovered two inter-communal water supply projects in Kim Thuy and An Thi districts. By the end of 2011, these two projects had inflated settlement amounts by more than 3 billion VND compared to the settlement documents.

The next case involves Thanh Nghe Tinh Foodstuff Joint Stock Company, a subsidiary of Vinafood 1 (Northern Foodstuff Corporation). This company signed contracts with three limited liability companies in Tien Giang to purchase rice, with the contract requiring an advance payment of up to 90% (equivalent to 143 billion VND) before receiving the goods. However, the company failed to receive the goods by the deadline.

If interest is calculated on the advance payment period as per the contract terms, amounting to over 18 billion VND, this enterprise has incurred a capital deficit of over 160 billion VND, putting it in a difficult situation. Recognizing this as a case with unusual circumstances, the State Audit Office has referred the matter to the investigative agency.

Regarding social insurance, the State Audit Office of Vietnam (SAO) audited Finance Company 2 under the Ministry of Agriculture and Rural Development. As early as 2010, the SAO had assessed that this company showed signs of violating regulations on capital structure, and therefore recommended to the Prime Minister that the case be transferred to the investigative agency for further investigation.

This case has been prosecuted and brought to trial. Previously, the Social Insurance agency had lent capital to Finance Company 2. Audits from 2010 showed that the agency had the ability to rectify the situation, but by 2012, rectification had become extremely difficult. The case involves over 1,000 billion VND in principal and interest, with inappropriate loan conditions, guarantee levels, loan plans, and target borrowers.

Next, Xuan Mai Construction Concrete Company (a subsidiary of Vinaconex) purchased agricultural land within the planned area for tens of billions of dong. This action is related to the misuse of state funds.

The next incident occurred at Song Da Finance Company. During audits at this company, the State Audit Office discovered negative signs in the mobilization and use of capital, specifically in salary payments, promotions, and foreign exchange trading.

According to vov.vn - LT