On September 24, a source from the Tien Phong correspondent informed that the An Giang Provincial Inspectorate had concluded an inspection on the compliance with legal regulations in the management and operation of the province’s Investment and Development Fund.
The Fund, established by the An Giang People’s Committee on October 3, 2012, with a charter capital of VND 100 billion, now boasts a capital of over VND 104 billion.
The An Giang Investment and Development Fund has a high rate of non-performing loans.
The inspection pointed out that in credit activities, the Fund advised the Management Board to issue several regulations that were inconsistent with the State Bank’s regulations. This led to the Fund implementing credit procedures according to its internal regulations or agreements in some credit contracts, which contradicted provisions on loan classification, risk provision, loan security, and the order of principal and interest collection.
“Regarding credit quality, the total outstanding balance at the end of 2023 was VND 80 billion, of which bad debts amounted to VND 43.6 billion (accounting for 54% of the total outstanding balance). While bad debt decreased in 2020 and 2021 compared to the previous year, it increased again in 2022 and 2023, reaching a high level. Four loans with large outstanding balances are considered non-performing, including a loan for the Agriculture Cooperative project of over VND 1.3 billion, the Dế Mèn Kindergarten project with VND 7.8 billion, additional investment in medical equipment for the Huỳnh Trung Dũng General Hospital with VND 8.7 billion, and the Vĩnh Thạnh Trung Trade Center infrastructure construction project with VND 3 billion in interest debt,” the conclusion stated.
According to the inspection conclusion, regarding the management of entrusted capital, although the An Giang Investment and Development Fund has repeatedly requested the return of advanced capital, it has not yet recovered a total of VND 39 billion from two projects funded by the Land Development Fund: the Infrastructure Construction for Border Military Command Area project in An Giang province (VND 20 billion) and the Tri Ton District Administrative Center Land Fund project (VND 19 billion).
The Fund’s operations have been profitable every year, except for a loss of over VND 9 billion in 2023. From 2020 to 2023, the Fund temporarily spent over VND 1.3 billion on welfare and rewards, but no settlement has been made yet.
The inspection recommended that the An Giang People’s Committee direct the Department of Home Affairs to advise and organize an inspection of the former Director and Deputy Director of the Fund during the 2020-2023 period.
The Investment and Development Fund was urged to promptly recover overdue and non-performing loans to safeguard its charter capital and address the loss of over VND 9 billion in 2023. Additionally, the Fund should organize a review of the individuals involved in the limitations, shortcomings, and errors mentioned in the conclusion and take corrective actions.
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