The Government Inspectorate has just issued Notice No. 475/TB-TTCP Announcing the Inspection Conclusion on the management and use of state capital and assets at Vietnam Rubber Industry Group.
In which, concluding on the management and use of state assets at the Group, inspecting the management of investment and construction of some projects, the Government Inspectorate clearly stated:
The project of construction and infrastructure business of Nam Pleiku Industrial Park, Gia Lai province, invested by Chu Se Rubber One Member Limited Liability Company: Deposit agreement to ensure project implementation, under-calculating the amount of 1.5 billion VND according to the provisions of Clause 3, Point b, Clause 6, Article 27 of Decree No. 118/2015/ND-CP; The investor approved the adjustment of the total investment of the project not in accordance with the provisions of Point b, Clause 2, Article 72 of the 2014 Construction Law, an increase of 58.59 billion VND compared to the total investment of the project agreed upon by the Group's Board of Directors; The project has not met the financial capacity conditions to ensure land use according to the project's progress as prescribed.
The project of construction and business of infrastructure of Bac Dong Phu Industrial Park, Binh Phuoc province, invested by Bac Dong Phu Industrial Park Joint Stock Company: Bac Dong Phu Industrial Park Joint Stock Company leased land to 3 secondary companies in violation of the provisions of Clause 2, Article 84 of Decree No. 181/2004/ND-CP and Clause 7, Article 2 of Decree No. 17/2006/ND-CP; Binh Phuoc Provincial People's Committee had a decision to recover land from 2005, but as of June 21, 2011, Dong Phu Rubber Joint Stock Company only handed over land to Binh Phuoc Provincial People's Committee, not in accordance with the provisions of Article 15 and Clause 7, Article 107 of the 2003 Land Law.
Project to expand the SVR 10.2 mixed rice processing line with a drying kiln capacity of 1.5 tons/hour, upgrading the wastewater treatment system from 620 m3/day to 900 m3/day rubber latex processing plant invested by Sa Thay Rubber Joint Stock Company: The investor approved the adjustment of the Project before having the appraisal opinion of the Kon Tum Provincial Department of Construction; The Project did not re-establish and approve the Environmental Impact Assessment Report according to regulations; The Project has a loan interest expense into the total investment level that is not in accordance with regulations; Project management costs include 10% VAT, the amount of 49.339 million VND is not in accordance with regulations.
Project to invest in the construction of SVR 10-20 Latex Processing Plant with a capacity of 5,000 tons/year invested by Lai Chau Rubber Joint Stock Company: The investor approved the project before having the appraisal opinion of the Lai Chau Provincial Department of Construction; Project management costs include 10% VAT, the amount of 93.085 million VND is not in accordance with regulations.
The Inspection Conclusion Notice also clearly states: "For the above-mentioned violations and shortcomings, the responsibility lies with: (i) The Board of Directors, the Group's leadership, the companies under the Group being inspected and individuals directly and related to the existing shortcomings, defects, and violations mentioned in the Inspection Conclusion; (ii) The agency representing the owner is responsible for performing the function of state management and the right to represent the owner at Vietnam Rubber Industry Group, especially the responsibility in inspection, supervision, and control of the management and use of state capital and assets at the Group; (iii) Some collectives and individuals related to the violations and shortcomings mentioned in the Inspection Conclusion".
