Financial evaluation twice a year to avoid losses from SOEs

Picture for illustration. Credit: the internet.

The law specifies responsibilities

In the petition, the constituents of Ha Noi, Binh Phuoc and Dong Nai provinces stated: Recently, many corruption cases have caused great damage to the country's economy and caused people's burning emotions.

Notably the case of Trinh Xuan Thanh – Former Vice Chairman of the Hai Giang provincial People’s Committee, the corruption of Vinalines; Pham Cong Danh – Former Chairman of the Board of Directors of Vietnam Construction Commercial Joint Stock Bank and partners in crime… causing the loss of trillions vnd to the State.

Constituent has requested the Government to strengthen measures to manage and control closely corporations and SOEs.

In response to this problem, the Ministry of Finance said that on November 26, 2014, the National Assembly promulgated the Law on Management and Use of State Capital invested in Production and Business at Enterprises No. 69/2014/QH13, in which, chapter V specifies the rights and responsibilities of the Government, the Prime Minister, the owner's representative office, the members' council or the chairman of the companies that the State hold 100% of charter capital, joint stock company, limited liability company with two or more members; Chapter VI specifies the rights and responsibilities of representatives of state capital portions and representatives of capital portions of enterprises.

The Ministry of Finance has drafted and submitted to the Government for promulgation the Decree No. 91/2015/ND-CP on state capital investment in enterprises and management and use of capital and assets in enterprises; Decree No. 87/2015/ND-CP on supervision of state capital investment in enterprises; financial supervision, operation evaluation and disclosure of financial information of SOEs and state capital at enterprises.

The Ministry of Finance has issued Circular No. 219/2015 / TT-BTC guiding some contents of Decree No. 91/2015 / ND-CP on State capital investment in enterprises and management and use of capital, property at the enterprise; Circular No. 200/2015 / TT-BTC guiding some contents on supervision of state capital investment in enterprises, financial supervision, performance evaluation and disclosure of financial information of SOEs and state capital at enterprises.

Thus, in terms of policy mechanism of the tasks assigned, the Ministry of Finance has completed the preparation and submission to the competent authorities for the promulgation. Accordingly, the policy mechanisms have to cite clearly responsibilities, powers of agencies playing as representatives of capital owners in enterprises.

Propose to handle immediately if detecting any sign of violation

About management measures, strict control at corporations, SOEs, according to the Ministry of Finance, biannually and annually, the Ministry has written reports to the Prime Minister on financial monitoring summarization and evaluation of the operation of the enterprises sent by owner's representative bodies to the Ministry of Finance.

In which, the Ministry of Finance has summed up the observance of the reporting regime by the owner's representative bodies, the production and business results, the financial situation in general of the enterprises and the list of enterprises which was judged that "There are signs of financial insecurity" by owner representatives, at the same time, proposed to handle liability for owner's representative bodies which were not reporting on financial supervision in accordance with regulations.

Besides, every year, the Ministry of Finance is authorized by the Government to synthesize the results of production and business of state-owned enterprises, economic groups, enterprises with state capital in the whole country to report to the National Assembly within overall assessment of financial status, business results of enterprises and, evaluation of SOE restructuring implementation and orientations for restructuring SOEs in the next stage. In these reports, the Ministry of Finance has proposed specific objectives, tasks, and solutions.

In addition, for each economic group, SOE, annually, based on the audited financial statements of economic groups, SOEs and reports on the results of financial supervision by the owner's representative bodies. The Ministry of Finance issued an official dispatch to the owner's representative bodies that is assessing the financial situation of the enterprises and gave a warning for cases of insecurity in finance, inefficient management and investment of capital, debt ability of the enterprise, etc., so that owner's representative bodies coordinate with the capital representative at the enterprise to enhance the management and supervision of the enterprise under its competence.