Signing labor contracts with the wrong subjects, spending money against regulations
According to the inspection conclusion announced on February 10, in the process of organizing production and business, U Minh Ha Forestry One Member Limited Liability Company allowed the situation of signing labor contracts with the wrong subjects to occur, leading to inappropriate expenditures.
In 2024, the Company Director signed a contract to hire workers to perform tasks such as afforestation, forest care, exploitation, transportation of timber, spraying herbicides and exploiting acacia hybrid firewood with Mr. Le Minh Tan and Mr. Nguyen Chi Nhan. Meanwhile, according to personnel management records, these two individuals are forest management and protection staff receiving salaries at the company, not eligible to sign labor contracts according to regulations.
The Inspectorate determined that the signing of the above contract was not for the right subjects, not ensuring the principle of transparency in the management and use of State capital. The total amount spent on these contracts amounted to 428,973,000 VND. By the time of inspection, the amount was still accounted for by the company as suspended in unfinished production and business costs, prolonging the processing time, and posing potential risks in settlement.
In the years 2023-2024, the company also spent 271.3 million VND on direct support and financial support for forest fire prevention and fighting to the wrong subjects, not in accordance with the expenditure content. Some expenditures for employees, coordinating forces and weekend weekend direct payments were determined to be not in accordance with the current regulations of the Ca Mau Provincial People's Committee, the Ministry of Agriculture and Rural Development (old).
The Inspectorate also pointed out that, for many consecutive years, the company incurred business management expenses exceeding norms, lacking invoices and documents, forcing it to be removed from reasonable expenses when determining production and business results. In the period 2022-2024 alone, the total number of adjusted business management expenses decreased by billions of VND, changing the financial obligations of the enterprise to the State.
Large debt, many prolonged debts
Another content that the Ca Mau Provincial Inspectorate especially noted is the situation of large and prolonged receivables, in which there are many amounts arising from service business activities at Song Trem Eco-tourism Area managed by the company.
According to inspection data, by the time of inspection, the company's total receivables were more than 12.2 billion VND. The outstanding debt alone was more than 8.72 billion VND, arising from many activities such as selling forest products to exploitation contractors, selling acacia hybrid seedlings, and providing food and beverage services at Song Trem Eco-tourism Area.
The Inspectorate noted that although the company has recovered more than 4.93 billion VND, there are still nearly 3.79 billion VND uncollected. In which, some items related to service activities at Song Trem Tourist Area have not been finalized in time, prolonging the payment time, increasing receivables.
Regarding bad debts, the total amount is nearly 3.49 billion VND, mainly arising from forestry companies before consolidation. Many debts are no longer fully documented; debtors have died, addresses cannot be identified, or they are no longer able to pay. However, the company has not fully shown its responsibility to urge, handle, and report on the debt recovery situation as prescribed, especially not implementing the periodic reporting regime in 2024.
From the above-mentioned violations and shortcomings, the Ca Mau Provincial Inspectorate has re-determined the financial obligations of U Minh Ha Forestry One Member Limited Liability Company, requesting the recovery of a total amount of more than 1.62 billion VND to be paid to the State budget, including corporate income tax to be additionally paid, deduction to the development investment fund and remaining profit after tax.
The Provincial Inspectorate requested the company to seriously review the responsibilities of collectives and individuals involved; and at the same time rectify financial management, labor contract signing and debt recovery, especially for debts arising from service business activities, in order to ensure the correct and effective use of state capital.
U Minh Ha Forestry One Member Limited Liability Company was established in 2008 on the basis of merging 5 forestry companies in the melaleuca forest area in Ca Mau. In 2010, the company was converted to a one-member limited liability company model according to the decision of the Provincial People's Committee. Currently, the company is headquartered in Khanh Lam commune, Ca Mau province; with a charter capital of 40 billion VND, the State holds 100% of charter capital, operating time not exceeding 50 years.
