The Government Inspectorate has uncovered numerous violations by Petrolimex.

On September 7th, responding to a reporter from the Vietnam News Agency (TTXVN) regarding the recent conclusions of the Government Inspectorate concerning violations by the Vietnam National Petroleum Group (Petrolimex), Mr. Tran Ngoc Nam, Deputy General Director of Petrolimex, stated that the group had received the inspection report and that once the inspection agency had reached a conclusion, the enterprise would be responsible for implementing the recommendations outlined in the inspection report.

Mr. Nam also stated that the corporation will seriously implement the plan, but if any obstacles or difficulties arise during implementation, the corporation will report them to the relevant authorities for support and guidance.

Illustrative image. (Source: Vietnam+)

Previously, according to Notice No. 2280/TB-TTCP dated September 1st from the Government Inspectorate regarding the implementation of the inspection conclusions on compliance with policies and laws on the management and use of capital and assets at Petrolimex and some member units, the parent company Petrolimex had invested financially outside its main business lines (banking, insurance, real estate) with a total amount exceeding VND 2,255.6 billion; in which, many large-value investments were made in violation of regulations.

Specifically, Petrolimex increased its investment in PG Bank by VND 400 billion, representing 40% of the recipient's charter capital, and in Petrolimex Insurance Joint Stock Company by over VND 171.3 billion, representing 51% of the recipient's charter capital, without the approval of the Ministry of Industry and Trade and the Prime Minister.

Petrolimex increased its investment capital by 51 billion VND in Petrolimex Real Estate Joint Stock Company without the approval of the Ministry of Industry and Trade; and used nearly 231.9 billion VND of its business capital to invest in banking, insurance, and real estate, contrary to the Board of Directors' resolution.

Petrolimex also entrusted its member units with long-term loans totaling over 414.6 billion VND from funds appropriated from payments to invest in construction projects, but has not yet allocated capital for construction investment and has not strictly implemented the divestment of non-core investments as per the Government's policy and the Prime Minister's decision.

Some investments by Petrolimex's parent company were ineffective, such as the 178.5 billion VND investment in Petrolimex Aviation Fuel Joint Stock Company and Petrolimex real estate; and the investment of over 38.8 billion VND in Tuyen Quang Trading Joint Stock Company, PTN Chemical Limited Liability Company, and Van Phong Investment and Development Joint Stock Company from 2010 until the time of the inspection, which yielded no dividends...

In particular, the Government Inspectorate pointed out serious violations in investment cooperation at Vipco Company; Regional Petroleum Company II...; and shortcomings in the management of business operations of Petrolimex and its member petroleum companies...

According to the Government Inspectorate's recommendation, the Ministry of Industry and Trade should take the lead in directing Petrolimex to review and handle the responsibilities of the collectives and individuals who have violated the law, in accordance with legal regulations.

Furthermore, regarding Petrolimex, the Government Inspectorate also requested the unit to allocate an additional nearly 4.9 billion VND to the Price Stabilization Fund, reassess the amount of over 53.7 billion VND that had been improperly set aside as a provision for impairment of financial investments, fulfill its financial obligations regarding corporate income tax; divest investments outside its core business, including over 622 billion VND in improperly allocated investments; and develop a roadmap for recovering over 414 billion VND in entrusted investment loans.

The unit has taken measures to recover outstanding debts arising from the re-export of petroleum products totaling USD 278,233; and has invested over VND 19.1 billion in cooperation with Thien Loc Phu Company...

Following the Inspectorate's recommendation, the Ministry of Public Security has received the files to investigate and handle the two incidents between Vipco Company and Thien Loc Phu Company in accordance with the law.

According to Vietnamplus