On November 7, the National Assembly discussed in the hall the draft Law amending and supplementing a number of articles of the Securities Law, the Accounting Law, the Independent Audit Law, the State Budget Law, the Law on Management and Use of Public Assets, the Tax Administration Law and the Law on National Reserves.
Regarding the Securities Law, delegate Nguyen Huu Toan - Deputy Chairman of the Finance and Budget Committee, said that the draft amended Law stipulates that the dossier for public offering of shares must include a report on contributed charter capital within 10 years from the time of the initial offering of shares. At the same time, it must be audited by an independent auditing company.
According to the delegate, auditing to determine initial charter capital is very important to determine the original charter capital and total number of issued shares.
If the charter capital is not determined accurately, it is easy to cheat all investors from the first purchase to subsequent purchases.
Delegate Nguyen Huu Toan cited a typical example of this related to FLC's Faros Company, from an initial charter capital of 1.5 billion VND, after 5 times of charter capital increase, this capital was raised to 4,300 billion VND (2011-2016 period). This caused huge consequences for the market.
Next, the delegate also mentioned the Dai Ninh super project of Mr. Nguyen Cao Tri, which through many magic spells, increased its charter capital to 2,000 billion VND.
"The magic method is to pump a certain amount of money into the account. Then withdraw and pump it back in, until the total revenue is equal to the total charter capital" - delegate Nguyen Huu Toan pointed out.
Therefore, the delegate affirmed that the auditing factor is very necessary to ensure a transparent and clean stock market. If the regulation included auditing of charter capital, the above cases would not have happened.
Also on this issue, delegate Nguyen Cong Long (Dong Nai National Assembly Delegation) said that to prevent crimes in the securities sector, the issue is state management. This includes contents and activities related to independent auditing.
“We must improve the performance of state management agencies, especially independent audits in this field. Recently, we have seen a series of particularly serious consequences, which are weaknesses coming from loopholes in independent audits,” the delegate added.
According to delegate Nguyen Cong Long, the cause of the above problem is the failure to verify and determine the actual activities of the violating enterprises.
This person hopes that in addition to the Law amending the content related to the Securities Law, the Law on Independent Auditing also needs to review and amend the prohibitions in the law to serve as a basis for handling.
