Massive Debt, Negative Equity, Yet Bribes Still Flow
The Agency for Security Investigation (Ministry of Public Security) has recently concluded its investigation into a case of “Violation of regulations on the management and use of state assets, leading to waste and loss; Negligence causing serious consequences; Bribery; Accepting bribes; Abuse of position and power to gain advantages for others” involving Vietnam Oil Transport and Tourism Trading Co., Ltd. and several related agencies and organizations.
According to the investigation, Mr. Le Duc Tho, former Secretary of Ben Tre Provincial Party Committee, was found to have accepted bribes totaling over VND 27 billion, a Patek Philippe watch worth more than VND 9.8 billion, and a Mercedes Benz S450 Luxury car valued at over VND 6.6 billion.
Xuyen Viet Oil has brought many officials to justice. Photo: L.B |
In this case, Mr. Tran Duy Dong, former head of the Domestic Market Department, Ministry of Industry and Trade (before being prosecuted, he was deputy head of the Trade Promotion Department – Ministry of Industry and Trade), was also proposed to be prosecuted for ‘Taking bribes’
In May 2024, Ho Chi Minh City Tax Department published a list of tax-delinquent enterprises for May 2024. Topping the list was Xuyen Viet Oil, with nearly VND 1,740 billion in tax debts.
On July 6, 2024, at a regular Government press conference, Senior Colonel Hoang Anh Tuyen, spokesperson for the Ministry of Public Security at that time, said that Mai Thi Hong Hanh – Director of Xuyen Viet Oil – and her accomplices had misused the Fuel Price Stabilization Fund and environmental protection tax for business and personal purposes, and established relationships to offer bribes.
The conclusion of the Government Inspectorate’s inspection on petroleum business management, published on January 4, 2024, revealed that Vietnam Oil Transport and Tourism Trading Co., Ltd. had negative equity of VND 462 billion, owed the state VND 1,246 billion in environmental protection tax, and VND 212 billion to the Fuel Price Stabilization Fund, with a preliminary total debt of VND 1,920 billion.
However, the company still lent its director, Mai Thi Hong Hanh, VND 2,978 billion (Ms. Hanh was arrested in September 2023 – PV)
According to a report by the Supreme People’s Procuracy, in relation to the case of violations of regulations on the management and use of state assets, causing waste and loss at Xuyen Viet Oil and some provinces and cities, the investigation agency temporarily held 134 savings books with a total value of VND 1,320 billion during the search process…
How did Xuyen Viet Oil obtain its license?
Xuyen Viet Oil was first granted an import-export license for petroleum products on August 22, 2016. The company was reissued the license on November 19, 2021.
When granted the license by the Ministry of Industry and Trade, the company met all the conditions stipulated in Clause 7 of Decree No. 83/2014/ND-CP. Regarding the requirement for a network of gasoline and oil agents (according to regulations, enterprises need to have 40 agents), Xuyen Viet Oil had 49 agents, including 17 agents with whom Xuyen Viet Oil directly signed agency contracts and 32 agents belonging to its subsidiary, Dai Dong Xuan Company.
However, the inspection conclusion of the Ministry of Industry and Trade pointed out that: To meet the condition of having a distribution system, 37 retail agents of Dai Dong Xuan Joint Stock Company were declared by Xuyen Viet Oil to belong to its system through the mechanism of parent-subsidiary companies. Specifically, Xuyen Viet Oil holds more than 50% of the capital in Dai Dong Xuan Company.
However, what is worth noting is that on the same day the Ministry of Industry and Trade granted the license for importing and exporting petroleum products, Xuyen Viet Oil and Dai Dong Xuan Joint Stock Company signed a document canceling the share transfer contract, and at the time of cancellation, “both parties had not performed any rights and obligations of the signed contract”
In conclusion, the inspection team of the Ministry of Industry and Trade recommended that the Domestic Market Department promptly rectify the shortcomings in the appraisal and licensing of petroleum business and strengthen the inspection and supervision of the maintenance of petroleum business conditions.
At the end of the inspection, the Ministry of Industry and Trade recorded that at the time of inspection, Xuyen Viet Oil had 10 directly managed retail gas stations and 18 valid retail gas agency contracts. Xuyen Viet Oil has been administratively handled and had its license for exporting and importing petroleum products revoked for a period of 1.5 months for failing to maintain and meet the required number of retail gas agents.
In 2023, the Ministry of Industry and Trade continued to inspect Xuyen Viet Oil’s compliance with the law in the petroleum business.
At the time of the inspection, the Ministry of Industry and Trade recorded that Xuyen Viet Oil had 10 directly-managed gas stations. However, three stations had their Certificates of Eligibility for Retail Gas Stations expired at the time of the inspection, and there were 20 valid retail gas agency contracts.
Based on Xuyen Viet Oil’s continued failure to maintain and meet the conditions for trading gasoline and oil, on August 11, 2023, the Ministry of Industry and Trade issued Decision No. 2081 to revoke the license for exporting and importing petroleum products of Xuyen Viet Oil.
Luong Bang
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