Tien Thuy (Quynh Luu): Lack of transparency in managing 1,074 billion in electricity business profits

(Baonghean) - More than 1,074 billion VND in profits from electricity trading from November 2011 to November 2014 were managed separately by the People's Committee of the commune, not balanced into the commune budget; the approval of expenditures and advances was not in accordance with regulations... is what is happening in Tien Thuy commune (Quynh Luu).

Tien Thuy is a coastal commune with strengths in fishing, exploiting and processing aquatic and seafood products. In the 2000s, due to the increasing efficiency of exploitation, many shipbuilding, freezing and seafood processing facilities were established, so the demand for electricity increased. In December 2004, the People's Committee of the commune signed a contract with the electricity management team led by Mr. Dinh Trung Thuc to build transformer station No. 3 and a 0.4 Kv power line to prevent overload and at the same time promote the development of the local spearhead economy, the capital source was invested by the electricity management team.

In October 2011, implementing the policy of handing over electricity to the State for management, Tien Thuy Commune People's Committee terminated the contract with the electricity management team. Because the Commune People's Committee had not paid all the investment costs to the management team, the two parties agreed that the profits from electricity trading would be distributed: the management team would receive 25%, the remaining profits would be spent on operation, management, repair, etc. According to calculations, from November 2011 to December 2014, the total profit from electricity trading was more than 1,074 billion VND.

Mr. Ho Hoang Nghiep, Chairman of Tien Thuy Commune People's Committee.

In early 2015, the Inspection Committee of Tien Thuy Commune Party Committee conducted supervision of the management and use of electricity revenue; clarified signs of violations against two individuals: Mr. Ho Xuan Than, former Vice Chairman of the Commune People's Committee (Head of the Finance Department) and Mr. Nguyen Minh Giai, finance and budget accountant of the commune. Through the inspection, the delegation discovered many signs of violations by the Vice Chairman of the Commune People's Committee and the Commune Finance Department. However, because at the time of the inspection, Mr. Ho Xuan Than was Vice Chairman of the Commune People's Committee, a member of the Standing Committee of the Commune Party Committee under the management of the District Party Committee and the District People's Committee, the inspection delegation did not issue a conclusion and reported in writing to the District Party Committee and the People's Committee of Quynh Luu District.

Mr. To Duy Nghia, Deputy Secretary of the Party Committee, Chairman of the Inspection Committee of the Commune Party Committee, said: Through the inspection, the delegation discovered that the profit of 1.074 billion VND from electricity trading was not included in the commune budget balance by the Commune People's Committee but was left out as a separate fund. Moreover, the opening of a separate cash receipt and expenditure journal of the finance department was not in accordance with the provisions of the Budget Law. At the same time, the commune finance department did not reflect monthly revenue into the book, and expenses for management, repair, and investment in upgrading power stations were not in accordance with regulations. From November 2011 to December 2013, receipts, expenditures, and documents related to the management of electricity trading profits were not archived.

Some advance payment papers of Tien Thuy commune officials.

According to the invoices, payment approval papers, and advance payments provided by the inspection team, the total amount of money withdrawn was nearly 860 million VND/1.074 billion VND. Of which, more than 219 million VND were payment approval papers, advance payments according to the plan, purchase and sale invoices that must be spent in balance within the commune People's Committee budget according to State regulations. More than 75 million VND was approved for payment, advance payments, and advance payments for power management and upgrading from March 2012 to April 2015. In particular, more than 525 million VND included advance approval papers, advance payments according to the plan; advance payments without advance content, without date, month; advance payments for wrong purposes. Up to now, most of this money has not been paid or settled. Through balance, the remaining cash from electricity business profits at the time of inspection should have been more than 269 million VND, but in reality, the commune treasurer did not have any money left.

Not only did they spend and advance money against the principles, but through checking many payment vouchers, it was found that the use of profits from electricity business showed signs of lack of transparency. In 2014, Tien Thuy Commune People's Committee organized a security combat exercise, the total cost for this exercise was more than 115 million VND. This amount was settled in the commune People's Committee budget and submitted to the commune People's Council for approval. However, the commune finance committee still included invoices and advance payment papers with a total amount of more than 75 million VND in the balance of the electricity fund. In addition, the debt papers and advances of Mr. Dinh Trung Thuc after the settlement between the electricity management team and the commune finance committee with the amount of more than 177 million VND have not been paid into the commune budget. Checking the advance payment vouchers showed that from 2008 to 2013, Mr. Ho Hoang Nghiep, Chairman of the commune People's Committee, advanced and approved an advance payment of more than 70 million VND. In which, many advance payment papers of the Commune People's Committee Chairman had no content, no date with the amount of more than 31 million VND.

Through inspection, it was found that Mr. Ho Hoang Nghiep also showed signs of lack of transparency in leasing the premises for the construction of the Mobile Information Center in Region I. Accordingly, on October 5, 2012, Mr. Ho Hoang Nghiep, representing the People's Committee of Tien Thuy Commune (Party A), signed a contract with the Mobile Information Center in Region I of the province (Party B) to lease the premises for the construction of the Mobile Information Center in Region I at Dau Rong Mountain for a value of 30 million VND (with only Mr. Nghiep's signature). However, there was also a contract with the same content but with a value of 77 million VND. Immediately after Party B transferred 77 million VND to the commune budget, Mr. Nghiep approved a paper to advance 39 million VND to return to Party B.

Explaining this issue, Mr. Ho Hoang Nghiep said: The reason for the parallel existence of two contracts is because Mr. Tuan, the contractor for the construction of the mobile broadcasting station, needed to legalize the documents to pay the workers, so he had to transfer 77 million VND to the Commune People's Committee, then I approved the temporary payment paper to withdraw 39 million VND to pay Mr. Tuan. I only helped Mr. Tuan to have money to pay the workers in the commune. The remaining advance payment papers that I advanced were not in accordance with the correct procedures, but I did not spend them for myself but used them for the common purposes of the commune. The advance payment paper of 5 million VND for me to go on a business trip to Hanoi and Dien Bien was borrowed from Mr. Nguyen Minh Giai, the treasurer of the Commune People's Committee, but because Mr. Giai did not have the money, he borrowed it from the electricity fund to lend me. "In principle, it was wrong, but I affirm that there was no ambiguity or personal interests here. As Chairman of the Commune People's Committee, I admit that I had shortcomings in managing and inspecting the work of professional staff.

After receiving the report from the Tien Thuy Commune Party Committee, on September 10, the Quynh Luu District Party Committee established an inspection team led by Mr. Nguyen Huu Bo, Deputy Head of the District Party Committee's Inspection Committee, to inspect signs of violations in Tien Thuy Commune. On October 20, the Standing Committee of the Tien Thuy Commune Party Committee and related individuals were invited to the District Party Committee to announce the draft conclusion, but because the inspection team had not yet clarified all the violations of the related individuals, the Standing Committee of the Commune Party Committee requested that further clarification be made. Mr. Nguyen Huu Bo said: The inspection team is currently continuing to work and has not yet reached a final conclusion.

On October 26, the People's Committee of Quynh Luu district issued Decision No. 2340 on the recovery of VND 1.074 billion deposited into the treasury account before November 11, 2015. The decision was accompanied by a list of 28 individuals - these are the people who advanced money from the electricity fund and had to pay back the money to the treasury. Thus, given the above signs, the management and use of money in electricity business in Tien Thuy commune lacked transparency, showing signs of violating State regulations. Therefore, the District Party Committee and People's Committee of Quynh Luu district need to quickly inspect and clarify the matter. If any officials are found to have committed violations, they must be strictly handled to regain the people's trust and recover the money to the treasury in accordance with regulations.

Pham Bang - Nguyen Trung