Uncovering Corporate Misconduct: The Auditors’ Exposé

Lottery Company Fails to Review Necessary Chartered Capital

Audit reports show that alongside achievements, there were limitations in managing and operating budget collection and expenditure, as well as managing and utilizing public finance and assets in 2024.

The audit agency pointed out that the Ferry and Bus Station Management Center (under the Department of Transport) leased infrastructure (Giao Long Port) from June 2015 to 2021, receiving advance rent for eight years totaling VND1.2 billion. This amount was accounted for as capital contribution to establish the Joint Stock Company of Tan Cang Giao Long according to the provincial People’s Committee’s direction…

From 2016 until the audit date (May 9, 2025), the unit did not account for the revenue to determine business results and fulfill state budget obligations. As of the audit date, the Joint Stock Company of Tan Cang Giao Long has not distributed dividends for 2024 or paid the Ferry and Bus Station Management Center.

At the Ben Tre Lottery One-Member Limited Liability Company, the auditors concluded that the company had not reviewed the necessary chartered capital in line with production and business plans. They also found that the company had not considered actual debt periods when determining the maturity of agent debt and had not reassessed or hired a valuation company to re-determine the value of pledged assets, which are land-use rights.

The People’s Committee of Ben Tre Province has not provided feedback on the proposed plan for rearranging and handling public assets (houses and land) managed by the Lottery Company. Regarding the land lot at 508 Au Co, Ward 10, Tan Binh District, Ho Chi Minh City, the Company used the land to construct a representative office (from the 1st to 3rd floors) and leased office space from the 4th to 9th floors, with a total value of VND110.435 billion. The Company is currently recording this amount under the item of basic construction investment in progress.

145 Projects Lack Allocated Capital

At the Ben Tre Irrigation Works Exploitation One-Member Limited Liability Company, the company did not have a plan to utilize and supplement chartered capital as regulated and accounted for chartered capital under the item of other capital. This includes the value of structures and works assigned by the State for management, which is inconsistent with current regulations. The People’s Committee of Ben Tre Province has not specified the maximum price for three public irrigation products and services.

According to the audit, as of January 31, 2025, there were 145 approved settlement projects that had not been allocated capital by investors to close the accounts. Among them, the project for the road from Giao Long Port to Phu Thuan Industrial Park (DT.DK.07), linking Chau Thanh and Binh Dai districts in Ben Tre Province, risks not being completed synchronously, thus delaying the effectiveness of investment capital.

The audit agency also pointed out that some state management agencies, which are not business units, were assigned 34 civil servants by the provincial People’s Committee, which is inconsistent with regulations. The decision of the Department of Transport (formerly known as the Port Authority) to assign seven civil servants on secondment from the Port Authority to perform traffic inspection tasks for the Inspectorate was not in line with their functions and tasks.

“The provincial People’s Committee’s policy to lease the entire infrastructure of the Port and the works in the Giao Long Port area at a starting price of VND150 million per year has not been implemented through auctions as prescribed,” the conclusion stated.