Editorial words: August 19, Binh Duong Provincial People’s Committee announced Inspection Conclusion No. 2735/KL-UBND dated August 13, 2015 of Binh Duong Provincial People’s Committee Chair regarding the investigation of Dai Nam Joint Stock Company. Accordingly, Dai Nam JSC was ruled for breaches on legal regulations on land, on legal compliance with capital construction, on observation of legal regulations on environment and water resources, on observation of investigation conclusion and post-investigation recommendations, etc. So as to bring up the objective and full picture of the investigation against Dai Nam JSC, we, Binh Duong Newspaper, published our articles detailing the case.
Government Inspectorate’s conclusion against denouncement implemented
As reported, the Government Inspectorate concluded 3 contents of denouncement in its Conclusion No. 1549/KT-TTCP dated July 4, 2014, demanding Binh Duong Provincial Party Committee and People’s Committee to consider responsibility of organizations and individuals making mistakes, demanding functional agencies to investigate and resolve the case of land allocation and sales within Song Than 3 Industrial Park under investment holding of Dai Nam Joint Stock Company.
Binh Duong Provincial authority has seriously implemented the conclusion in accordance with Official Dispatch Document No. 1071/VPCP-V.I dated June 18, 2014 of Government Secretariat extending the directing decision of Prime Minister on processing the denouncement verification and Conclusion No. 1549/KL-TTCP. However, during the process, Dai Nam JSC has submitted documents to evade and postpone the Prime Minister Conclusion implementation.
An extract of investigation conclusion against financial obligations of land allocation and sales made by Dai Nam Joint Stock Company under Song Than 3 Industrial Park Project. Photo: P.V.
Binh Duong Provincial Party Committee has, particularly upon acquiring the denouncement conclusion, demanded police agencies to investigate the case of land allocation and sales within Song Than 3 Industrial Park. The investigation agencies have demanded for tax authority to report on tax observation of Dai Nam JSC during such process. Binh Duong Provincial Department of Tax has reported to Binh Duong Provincial People’s Committee and been approved with sudden investigation. This has been legally made. However, Dai Nam JSC showed their non-cooperating notion with the inspectorate of Department of Tax.
On January 5, 2015, Binh Duong Provincial People’s Committee made Decision No. 02/QD-UBND on establishment of a scrutiny delegation to investigate the production and business operations as well as law observation of Dai Nam Joint Stock Company. Implementing the decision, Binh Duong Provincial Inspectorate carried out investigation at Dai Nam Joint Stock Company from January 8 through May 13, 2015.
As the matter of fact, it can be affirmed that the scrutiny against Dai Nam Joint Stock Company was to continue implementing directing decision and Conclusion No. 1549/KL-TTCP dated July 4, 2014 of Prime Minister. The decision making and scrutiny against Dai Nam Joint Stock Company was not a fault finding game.
Legal investigation
Before Binh Duong Provincial Inspectorate’s actions, various investigations have been made in October 2012, August 2013, and July 2014 respectively by Department of Tax, and Region IV Audition regarding tax law observation in 2011, audition of budget payments in 2011 and 2012, and tax inspection in 2012.
Meantime in January 2015, the local inspectorate followed Decision No. 02/QD-UBND dated January 5, 2015 of Binh Duong Provincial People’s Committee to investigate comprehensive operations and operation-related law observation of Dai Nam Joint Stock Company from 2009 through 2014. Thus, Binh Duong Provincial People’s Committee Inspectorate has implemented wider investigation on obtaining investigation results of previous investigations as mentioned while fulfilling those aspects not investigated including cost allocation for enterprise income tax. (The local inspectorate continued to investigates other years of business operations excluding the interest of personal loans of Huynh Uy Dung used for other purposes). Clause 2 of Article 7 of Law on Inspection 2011 reads: “Scale, subjects, contents, and time of investigation and/or inspection should not be overlapping from one agency to another.” Referring to this, Binh Duong Provincial People’s Committee Inspectorate has not violated the laws regarding its operations.
This proved the legality of inspection against Dai Nam Joint Stock Company as implemented by the local inspectorate. The wrong-doing of Dai Nam Joint Stock Company has been uncovered legally as acknowledged by Nguyen Dinh Khuong (the authorized of Huynh Uy Dung) with signatures on working minutes with the inspectorate and on administrative violation minutes as well as in meetings approving draft investigation results of the inspectorate and Binh Duong Provincial People’s Committee Chair. The inspectorate will not re-investigate the conclusions of previous inspectorate delegations.
Various violation uncovered
Under Conclusion No. 2735/KL-UBND dated August 13, 2015 of Binh Duong Provincial People’s Committee, Dai Nam Joint Stock Company has made use of 25.23 hectares of land to service Dai Nam Theme Park without established land procedures. By doing so, the company violated Article 12 of government Decree No. 102/2014/ND-CP dated November 10, 2014 promulgating on administrative sanctions against cadaster regulation violation. The land allocation was not used for the construction of over 3 storey apartment building in accordance with the registered purposes for Song Than 3 Industrial Park, instead, it was for sales; this violated Clause 1 of Article 110, Clause 2 of Article 107, Clause 1 of Article 174, Clause 2 of Article 170, and Clause 6 of Land Law 2013. Dai Nam Joint Stock Company constructed its Commercial Center in 2011 but failed to put the project into operations, thus, violating Item I of Clause 1 of Article 64 of Land Law 2013.
Dai Nam Joint Stock Company has changed specifications of 4 licensed and owned constructions; its 167 complete constructions, of which 4 were not complied with the planning, have not been licensed and registered for construction ownership. The mentioned actions have breached Decree Numbers 121/2013/ND-CP dated October 10, 2013, 23/2009ND-CP, and 126/2014/ND-CP of the government. Besides, Dai Nam Joint Stock Company also breached legal regulations on environment and water resources as ruled by Decree Numbers 179/2013/ND-CP dated November 14, 2013 and 142/2013/ND-CP dated October 24, 2013 of the government.
Dai Nam Joint Stock Company has, particularly, not rightly recognized the economic nature of the emerged activities; the accounting finalization failed to follow financial principles at some points; accounting finalization procedures under the current accounting policies were not observed; the cost allocation was not conformed and violated some tax legal regulations, decreasing the payable taxes. The Company has not seriously observed the post-investigation conclusion and recommendations made by functional agencies.
By Reporters – Translated by Vi Bao
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