Inspector General: Income of officials will be controlled.

The recent inspection findings are attracting significant public attention and have come as a surprise to the public.

Resolving complaints and denunciations, and combating corruption—areas considered the most sensitive and controversial—are the regular tasks of the Government Inspectorate. The conclusions issued by this agency often shock public opinion. Recent inspection conclusions by the Government Inspectorate are issues of particular public interest and have come as a surprise to the public.

In today's (January 26th) "People Ask, Ministers Answer" segment, the Inspector General of the Government, Huynh Phong Tranh, will address citizens' questions regarding the latest announcements from this agency.

EVN invested over 45,000 billion VND in violation of regulations, and included over 60 billion VND worth of one public welfare project in electricity prices.

PV: Thank you, Inspector General of the Government, for accepting our invitation to participate in this column. Inspector General, the recent announcements by the Government Inspectorate regarding the inspection of Vietnam Electricity Group (EVN) have caused a stir in public opinion, with several letters from citizens sent to this column expressing particular concern about the EVN inspection.

They asked: "Mr. Inspector General, we are very concerned about the amount of capital that Vietnam Electricity Group (EVN) has invested outside the parent company, which amounts to 121 trillion VND. This is a huge sum of money, while EVN constantly complains about a lack of investment capital."

So, is EVN's complaint unreasonable? Why, when it has surplus funds to invest outside the parent company, does it claim to lack capital for power plant construction? Or is it because the investment return rate for the electricity sector is too low, while the investment return rate outside the parent company is too high, forcing EVN to act this way? During the inspection process, were these inconsistencies clarified? Could the Chief Inspector please provide us with this information?

Government Inspector General: During the inspection of Vietnam Electricity Group (EVN), the Government Inspectorate clarified many issues, including investments outside the parent company totaling 121 trillion VND. It can be said that Vietnam Electricity Group has achieved very effective results in recent years, contributing to the socio-economic development of the country and increasing electricity supply. In particular, it has contributed to macroeconomic stability.

Inspector General of the Government Huynh Phong Tranh (Photo: KT)

However, through inspections, we discovered many violations. Among them, 121 trillion VND was invested outside the parent company. For EVN, this 121 trillion VND investment exceeded its charter capital by 45 trillion VND. From a regulatory standpoint, investing outside the core business does not violate the law, as the law stipulates that state-owned enterprises have the right to invest in multiple sectors and fields. Therefore, it can be said that investing outside the parent company leads to consequences such as, firstly, the dispersion of capital and investment not being concentrated in the core business.

Secondly, the return on investment in non-core business activities was low. Following the inspection, the Prime Minister instructed the Ministry of Industry and Trade to rectify this issue, focusing investment on core business activities to secure capital for the electricity sector and ensure efficient production and business operations.

To date, during and following the inspection process and the conclusion of the inspection, and in accordance with the Prime Minister's directives, Vietnam Electricity Group (EVN) has implemented the divestment roadmap as stipulated by the Government. I believe EVN has recognized the issue and is now implementing divestment and investing in its core business.

PV: Also, a question related to the electricity sector: Mr. Inspector General, the information released by the Government Inspectorate regarding the Vietnam Electricity Group (EVN) including 600 billion VND for the construction of villas, tennis courts, and swimming pools in the costs of 6 power projects has caused great public outrage. EVN also lent money to the Pha Lai thermal power plant at a low interest rate, and then borrowed a large sum from this plant at an interest rate eight times higher.

Dear Inspector General of the Government, is there something fishy about lending at low interest rates and then borrowing again from the same source at eight times the original rate? And are these costs being passed on to the electricity price and ultimately burdening the people?

Government Inspector General: The Government Inspectorate has concluded and clarified that investments were made in six projects, including worker housing, expert housing, and welfare facilities such as tennis courts, swimming pools, and other sports facilities. Our analysis shows that the exact figure for these six projects is 595 billion VND. After the inspection concluded, one project exceeding 60 billion VND was included in the cost calculation and used in electricity pricing. The remaining five projects are under construction and are nearing completion.

Following the inspection's conclusions, the Government directed the Ministry of Finance and the Ministry of Industry and Trade to review which investments and components should be included in the cost calculation for electricity pricing. Any investments that should not be included will be allocated to the welfare fund for investment in similar projects. In short, this does not mean that all 595 billion VND invested will be included in the electricity cost calculation; there are currently 5 projects that have not yet been finalized. During the finalization process, any inappropriate items will be excluded from the cost calculation.

Regarding the loan of 2.35 trillion VND to Pha Lai Thermal Power Plant, this is temporarily idle capital of Pha Lai Thermal Power Plant Company. Therefore, this activity confirms that it is not a credit activity but rather a mobilization of internal resources within the Vietnam Electricity Group.

For Vietnam Electricity Group, this is perfectly normal and contributes to investment in the electricity sector. We have reviewed it and found that it does not violate the law. We have reported to the Prime Minister that this activity does not violate credit regulations, so it was not included in the conclusions regarding violations by Vietnam Electricity Group.

The inspection findings at Agribank will be announced soon.

PV: The Agricultural and Rural Development Bank is one of the largest banks, but it has been involved in numerous irregularities recently. The Government Inspectorate has been conducting an inspection of this bank for a long time, so why is it still taking so long to announce the results?

In this "People Ask, Ministers Answer" section, could the Inspector General please provide information on the inspection process of the Agricultural and Rural Development Bank and its results?

Government Inspector General: The inspection of the Vietnam Agricultural Bank can be said to have been quite lengthy, lasting more than a year. This is due to several reasons. Firstly, the Vietnam Agricultural Bank is the largest state-owned commercial bank. It has mobilized capital and outstanding loans totaling 431 trillion VND and charter capital exceeding 21 trillion VND.

Secondly, the Agricultural Bank has many branches and operates across a very wide geographical area. Therefore, it takes time to reach a conclusion after an inspection. Recently, we conducted an inspection, reached a conclusion, and it was approved by the Prime Minister. There are signs of violations, firstly, credit activities not in accordance with State regulations, violating the Credit Law in the form of procedures, disbursement, and collateral that do not comply with regulations. Secondly, there is lax management and operation, causing negative consequences.

Thirdly, there are signs of legal violations. Therefore, in the past period, the Vietnam Agricultural Bank has been investigated by relevant authorities, who have recommended handling several cases. In particular, during the 2012 inspection by the Government Inspectorate, although the inspection of the Vietnam Agricultural Bank has not yet concluded, we discovered a case of legal violation: Lifepro Company, a foreign-invested company in Ninh Binh, violated the Law on Credit Institutions, with a loan of 3,500 billion VND and interest amounting to 300 billion VND by the end of 2012. In short, the outstanding credit balance reached 3,800 billion VND.

The violations involved fraudulent activities resulting in the misappropriation of state assets. We have referred the case to the investigative agency, which has initiated legal proceedings and arrested nearly 30 individuals, including bank officials, customs officials, and customers. Among them are one branch manager and two leaders of the Agricultural and Rural Development Bank. Currently, this case is under investigation to clarify the facts and prosecute according to the law.

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

Government Inspector General: Regarding the announcement of the inspection, the Prime Minister has co-signed the inspection conclusion of the Government Inspectorate. On January 23rd, we announced it at the unit, that is, at the Agricultural and Rural Development Bank. We will continue to announce it through the mass media. After this program is broadcast, other mass media outlets will make it public. During the inspection process, we sought the Prime Minister's opinion to transfer 15 cases to the investigative agency for further clarification of signs of violations and transferred 59 cases to the State Bank of Vietnam for the Bank to conduct inspections and supervision according to the Law on Credit Institutions. If violations are found, they will be handled according to regulations.

A decree will be issued on controlling the income of officials.

PV: A question on the topic of anti-corruption. Mr. Inspector General, we see that the Law on Anti-Corruption is mostly in form but lacks substance and effectiveness. For example, the declaration of assets by officials and those in high positions... In your opinion, has the declaration of assets been implemented effectively, and if not, what will the Government Inspectorate do to make this work more substantive and effective in the future?

Government Inspector General: Asset declaration is an important preventive measure. Therefore, after the amended Law on Anti-Corruption introduced many new points, including the declaration and public disclosure of assets, the Politburo recently issued Directive No. 33, assigning the task and responsibility of Party committees and heads of agencies and units to declare and publicly disclose their assets.

For this public declaration of assets, all previous asset declarations must be fully re-declared, adding up all assets from the past to the present. If there is an increase in assets, an explanation must be provided. After the declaration, it must be publicly displayed at the workplace or regular place of work of the person making the declaration.

Thirdly, the responsibility is assigned to the head of the officer's direct supervisor to conduct verification when there are signs of dishonesty or delayed declaration.

Fourthly, the regulations stipulate the handling of officials who make dishonest declarations, declare late, or violate regulations in the declaration process.

In summary, asset declaration is an important and necessary measure to prevent, deter, and publicize the income of officials and civil servants subject to declaration under the amended Anti-Corruption Law. In the near future, in addition to asset declaration, the Government Inspectorate is drafting a Decree for the Government to issue regarding the control of income of officials in positions of power under the amended Anti-Corruption Law.

PV: Thank you, Inspector General of the Government!

According to VOV