According to the Government Electronic Information Portal on October 13, the Gia Lai Provincial Inspectorate has just reported the results of the inspection and review of the equitization process of Gia Lai Coffee One Member Co., Ltd. under the direction of the Gia Lai Provincial People's Committee.
The inspection process determined that in 2018, Gia Lai Provincial People's Committee issued Decision No. 142 approving the equitization plan and changing the name of Gia Lai Coffee One Member Co., Ltd. to Gia Lai Coffee Joint Stock Company.
However, the implementation of this decision has caused many problems, including the fact that workers of the company who are contracting coffee have their land and assets on the land confiscated but have not been properly compensated. This has led to widespread and prolonged complaints in the locality.
The inspection agency pointed out that the settlement of equitization and adjustment of state capital in enterprises lasting more than 5 years (from September 2018 to May 2024) was not in accordance with regulations, leading to the implementation of company transfer steps and land procedures not following legal procedures.
Notably, the incorrect determination of the value of the State capital for the Company's orchard led to incorrect determination of the enterprise value, causing loss to the State budget. The Company also under-inventoried assets, and the contract between the Company and the contractor showed the number of forest belt trees and windbreak trees (cassia).
Meanwhile, in the Company's document requesting appraisal and approval of the dossier to determine the enterprise value for equitization, there were no forest belt trees or windbreak trees, leading to loss of State assets.
The inspection conclusions indicate that the responsibility for the above violations belongs to the Provincial People's Committee, the Chairman and Director of Gia Lai Coffee One Member Co., Ltd., the Provincial Steering Committee for Equitization and agencies related to identification and appraisal, including: Department of Finance, Department of Agriculture and Rural Development; Dong A Valuation Joint Stock Company is the consulting unit for determining the enterprise value.
With the above inspection results, Gia Lai Provincial Inspectorate recommends that the Provincial People's Committee provide information and transfer all documents to the Gia Lai Provincial Police Investigation Agency on the inventory, determination of the value of the garden, determination of state capital, and determination of enterprise value in the process of equitization of Gia Lai Coffee One Member Co., Ltd. in violation of regulations, causing a loss to the State budget of more than 26 billion VND.
The loss of 26 billion VND includes incorrect determination of the value of coffee gardens, failure to inventory and determine the value of assets such as cassia trees, and a number of other issues affecting the equitization process.
Previously, as Lao Dong reported, the Gia Lai Provincial Police Investigation Agency is also investigating and clarifying the violations before the equitization of Gia Lai Coffee Company Limited. In which, the head of the unit did not perform the functions and tasks assigned by Gia Lai province, leading to many violations.
Recently, there have been many long-standing disputes between Gia Lai Coffee Company Limited and people receiving contracts, leading to lawsuits that escalated.
The company signed a contract with the people of Dun and Ia Pa communes to plant trees and develop the economy. However, when the authorities of Chu Se district reclaimed the land, many households did not agree with the district People's Committee not compensating for the property, which was a coffee garden with a contract.
