Many problems and violations exist in the equitization of transport enterprises

Violations at many businesses

The Government Inspectorate has just announced the conclusion of the inspection of the restructuring of state-owned enterprises and the conversion of land use purposes from production and business land of state-owned enterprises and equitized enterprises to land business and housing construction in the period 2011 - 2021 at the Ministry of Transport.

The inspection conclusion pointed out many shortcomings and violations in the process of restructuring, equitization, and land use management when implementing equitization and divestment of State capital at a series of leading enterprises in the transport sector such as Vietnam Railways Corporation, Vietnam Airports Corporation, Vietnam National Shipping Lines, Vietnam Airlines Corporation, Cienco 4, Cienco 5, Cienco 6, Cienco 8...

Typically, in the process of equitization of the parent company of Vietnam Railways Corporation, the Ministry of Transport directed the equitization of small-scale, scattered railway infrastructure maintenance companies, with a very low rate of selling shares to the outside, mainly to employees, causing the equitization of 26 equitized units to not meet the goals and requirements, and the closed situation within the enterprise is not in accordance with regulations.

At the parent company Vietnam Airports Corporation (ACV), although it is not subject to equitization according to the Prime Minister's decision because most of the airports managed by ACV (21/22 airports) are used for dual-use purposes, the equitization comes from the direction of the Ministry of Transport, so the implementation process has encountered many difficulties and problems, especially in the handling of assets in and outside the airport area, land and policy mechanisms, affecting aviation security and safety.

"In reality, the equitization of ACV did not achieve the results as per the approved equitization plan" - the Government Inspectorate stated.

Notably, the Ministry of Transport approved the enterprise value for equitization of ACV when the legal documents of 29 real estate facilities had not been completed and there was no land use plan submitted to the People's Committee of the province or centrally-run city for approval, which was not in accordance with Decree No. 189/2013 of the Government; approved the enterprise value for equitization of ACV when the ownership of fixed assets in the airport area located on land managed by the Airport Authority and the land use rights of the enterprise had not been completely resolved.

According to the Government Inspectorate, the responsibility for the existence and violations in the equitization process belongs to the Ministry of Transport, the Equitization Steering Committee, Vietnam Railways Corporation, member units of Vietnam Railways Corporation, ACV and the consulting unit that determined the enterprise value...

Responsibility for the amount of 396 billion VND

With the recently announced inspection results, the Government Inspectorate recommends that the Prime Minister direct the Ministry of Transport to review and handle the collective and individual responsibilities of the Ministry of Transport's leaders involved in allowing the existence of shortcomings, limitations, shortcomings, and violations in the restructuring of state-owned enterprises (rearranging, equitizing state-owned enterprises, equitizing enterprises to trade in land and build houses in the period 2011 - 2021).

Direct the State Capital Management Committee to handle the collective and individual responsibilities of the leaders of the State Capital Management Committee at related enterprises for the existence of shortcomings, limitations, shortcomings, and violations in the delay in settlement at Vietnam National Shipping Lines Corporation VIMC, Vietnam Airports Corporation ACV; in the delay in advising competent authorities so that the Transport Hospital after equitization operated ineffectively for a long time.

Regarding economic handling, the Ministry of Transport will consider responsibility, compensate for damages (if any) and handle in accordance with the law the reduction and loss of State capital when equitizing and divesting with a value of more than VND 396 billion. Of which, due to equitization, State capital was reduced and lost by more than VND 66.1 billion and due to production and business activities, State capital was reduced and lost by VND 330.4 billion.

"During the review and handling process, if any signs of law violations or damage to State property are detected, the case file will be transferred to the police agency for handling according to the provisions of law," the Government Inspectorate emphasized.