The company is in debt like a "king", the workers are in trouble
(Baonghean) - After nearly 3 years of operating at a loss, Nghe An Irrigation Construction Joint Stock Company 3 has sold all its machinery, assets and headquarters land to pay off bank debts. Dozens of workers here are also struggling with the company.
Deputy director calls for help
In early August 2018, Nghe An Newspaper received a petition for help from Mr. Pham Hong Linh - Deputy Director of Irrigation Construction Joint Stock Company 3 (Hung Phuc Ward, Vinh City). Mr. Linh wrote the petition on behalf of 131 shareholders of the company, hoping that the authorities would intervene to clarify many issues at the company.
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| Irrigation Construction Joint Stock Company 3 - where Mr. Pham Hong Linh filed a petition for help. Photo: NH |
Firstly, the company has deducted salaries from staff but has not paid social insurance for employees since 2013 with an amount of more than 3 billion VND. It has not paid salaries of staff since the end of 2015 and maternity benefits for female staff. Secondly, the company has sold assets without establishing an asset auction council.
Third, the company has not held an annual general meeting of shareholders to report its financial results to shareholders since 2013. Fourth, it has taken a vote of shareholders on the sale of the company headquarters, but the percentage is not enough according to the charter, but the company still signs the vote to reach the required percentage.
Without an appointment with a reporter, Mr. Linh would have a hard time finding a reason to go to the company. For more than 3 years now, the company has been operating at a loss, and for the past 2 years, the company has had no work, so even if he went to the company, he would not do anything and no one would pay him.
Mr. Linh said that he was the deputy director but in reality, the important issues of the company were not discussed and fully understood. With the desire to reclaim his rights as well as dozens of employees, he reluctantly filed a lawsuit.
“We are shareholders of the company, so we must know where the company’s cash flow goes and where it goes. Furthermore, as an employee, I want the company to answer questions about selling the headquarters as well as when to pay salaries and social insurance to employees,” said Mr. Linh.
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| For more than 2 years, Irrigation Construction Joint Stock Company 3 has been deserted. Photo: NH |
More than 16 years ago, Irrigation Construction Joint Stock Company 3 was a state-owned company, managed by the Department of Agriculture and Rural Development. In 2002, the company was equitized and divested of state capital. According to the registration, the company had a charter capital of 3.26 billion VND, specializing in the construction of medium and small-sized projects such as dykes, embankments, and irrigation dams. By 2013, the company's operations were not favorable.
“From 2013 to now, the company has not held a shareholders’ meeting to report the company’s financial situation to shareholders. Also in this year, the company started not paying social insurance for employees. In 2014, the company director and accountant sold some machinery such as motor vehicles and excavators, but the amount of money from the sale and what it was used for are not clear. As for me, I am still owed 140 million VND in salary for the past 2 years,” said Mr. Linh.
Because the company is losing money and there is no work, the employees in the company have to quit and find other jobs. Some people are still living in run-down, damp dormitories. In addition to being owed wages, many people are miserable when they are sick and do not dare to go to the doctor. In case of force majeure, they have to fend for themselves because they are not paid for health insurance.
Mr. Nguyen Van Tuan - Head of the company's Administration Department said that now whoever wants to come to the company can come, whoever doesn't want to come can't, because there is nothing to do and no one pays. The company director has not come for a long time. Many workers are in difficult situations but don't know who to complain to.
Debt like… a king
According to the authorities, Irrigation Construction Joint Stock Company 3 is one of the units with the largest and most persistent tax and social insurance debts in the province. According to the social insurance sector, as of May 2018, Irrigation Construction Joint Stock Company 3 owed more than VND 3,147 billion in social insurance. Regarding taxes, as of October 2017, Irrigation Construction Joint Stock Company 3 owed more than VND 2 billion in taxes. However, that debt is nothing compared to the company's debt to the bank.
According to Mr. Nguyen Van Nam - Director of Irrigation Construction Joint Stock Company 3, in addition to tax and social insurance debts, the company owes the bank more than 15 billion VND and some other debts. When asked why the company has not held a shareholders' meeting for the past 5 years to report its financial results and the company's upcoming business plan, Mr. Nam said that if the company has no work or money, holding a meeting will not solve any problems.
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| Many workers are unemployed but still living in the company's dormitory. Photo: NH |
Not only owing wages, social insurance, and taxes, Thuy Loi 3 Construction Joint Stock Company also did not pay maternity benefits to its employees. According to the investigation, from 2013 to now, there have been 4 cases of female employees of the company giving birth but not receiving maternity benefits. They include Ms. Le Thi Anh, Dang Thi Anh, Ho Ha Doai and Le Thi Hieu. Ms. Le Thi Anh affirmed that the company's failure to pay maternity benefits to female employees was correct.
“In June 2013, I gave birth to my first child and later learned that the maternity allowance sent by the Social Insurance through the company was more than 22 million VND. The other 3 people were also paid by the Social Insurance, plus sick leave allowance of about 80 million VND. However, until now, we still have not received this allowance from the company. I asked the director and he said that when it is available, he will pay,” said Ms. Le Thi Anh.
Due to heavy debt, Irrigation Construction Joint Stock Company 3 has established an asset liquidation council to sell assets on land and the company's headquarters land at No. 1, Lane 64, Le Hoan Street, Vinh City. According to Mr. Nguyen Van Nam - Director of Irrigation Construction Joint Stock Company 3, according to the National Assembly's resolution, the bank requested to dispose of assets to repay the bank's debt. The company held a meeting to get shareholders' opinions and established an asset liquidation council to repay the bank's debt because if it was left for too long, the bank would confiscate it. During the meeting, some members of the council disagreed, the bank could not wait, so they put it up for auction.
“I heard that the bank sold more than 22 billion VND. After paying off debt and property income tax, the company will prioritize paying off social insurance and tax debts,” Mr. Nam affirmed.
Regarding maternity benefits and salaries of staff and workers who are still owed, the company director said that because it has been so long, he does not remember how much. The number of workers who have not yet closed their social insurance books is also not clear. Because the company has no jobs, many people have moved elsewhere, some have retired, the number of workers who are still staying is 14 people.
Thus, the contents of Mr. Pham Hong Linh's petition are well-founded and the solution direction according to Mr. Nguyen Van Nam is: "If after paying off all bank debts, social insurance, and taxes, there is still money, we will pay salaries and maternity benefits to the employees. You can rest assured because our rights are included in that."