Financial ambiguity at Ha Nam Lottery One Member LLC

Recently, Railroad & PL Magazine received information related to lax financial management as well as prolonged loss business, public asset management … at One City Limited Liability Company. member (one member limited company) of Ha Nam lottery. For objective information, PV has repeatedly contacted this business but did not receive any answers. Is the company unit avoiding providing information to the press?
Business goes down in the long run

Ha Nam Lottery One Member Limited Company (Ha Nam Lottery Company) was licensed to operate from March 9, 2009. As a 100% state-owned enterprise directly under the People’s Committee of Ha Nam province, Ha Nam Lottery One Member Limited Company has an equity of 27.38 billion VND. Representative is Mr. Nguyen Dang Khai, Chairman and Director of the company.

Over the years, the business activities of Ha Nam Lottery One Member Limited Company always fell into a state of loss, many signs of wrongdoing in the management and financial spending of the company, causing loss of state assets. tens of billions of dong.

Specifically, according to the report on business results of Ha Nam Lottery Company, in 2017 the company lost VND 1,866 billion, in 2018 it lost VND 5,613 billion, the accumulated loss as of August 31, 2018 was VND 18,754 billion / VND 27.38 billion of equity, ineffective business activities at the Company resulted in the total remaining equity by the end of 2018 to only VND8.6 billion. In which, working capital is about 2.6 billion dong (2 term deposits are 2 billion dong) and the rest are in cash and demand deposit. Capital with fixed assets is 6 billion VND, including 1 car, the rest is real estate.

Facing the situation that the company continuously made losses, on March 6, 2019, the People’s Committee of Ha Nam Province issued Document No. 558 / UBND – KT requested: Checking and checking the losses and arising costs. Unusually high at Ha Nam Lottery Co., Ltd. Stop the loss lasting for many years. Request the Director of the company to strictly abide by the regulations and take responsibility before the law for business activities at the company. However, up to now, the company’s business has not been effective, there are still many problems that need to be solved.

Piled up mistakes in financial management

In 2018, under the direction of the Department of Finance of Ha Nam Province, VACO Independent Auditing Company audited the financial statements showing a series of mistakes of Ha Nam Lottery Company. One of the most serious mistakes is that the company does not record revenue (left off the books) of the lottery lottery from July 2016 to August 2017.

According to the revenue report, this type of revenue is from 12 to 15 million VND / day. So, in the period of 14 months, it is estimated about 5.4 billion VND to stay out of the book. The question is why Ha Nam Lottery Company did not record the revenue of the lottery type lottery from July 2016 to August 2017? How that money is spent is still unknown.

In addition, the use and management of public assets of Ha Nam Lottery Company is very loose, causing wasteful use of assets, the budget is not for the right purpose, not serving the general operation. business activities of the company. Typically, the company voluntarily purchased 01 car brand TOYOTA ALTIS 2.0 produced in 2013 without consulting the owner, Ha Nam Provincial People’s Committee.

Another corporate mistake that was discovered according to the audit report is that the issuance of lottery tickets includes: Prize structure, commission rate, and the form of dialing to issue does not comply with the regulations of the Company. law.

Specifically, the Company issued lottery tickets outside the province (sold in Hanoi). The dialing is not public, there is no record. All lottery tickets released outside the province have no invoices, only handwritten transactions. This amount is still left out of the book over 1 billion dong of unpaid and confirmed debt.

In 2018, the total cost of commissions that the company spent on 2 traditional lottery agents was up to 27%, surpassing the prescribed threshold of 12%, equivalent to VND 210,000,000. According to Circular No. 138/2017 / TT -BTC guiding some specific expenses for lottery businesses specified in Decree No. 122/2017 / ND-CP, then: Lottery businesses decide but must not exceed 15% of the revenue from the lottery business, including value added tax and special consumption tax.

In 2018 alone, hundreds of expenses amounted to more than 162 million VND of the company such as: Business, reception, conference and other general expenses but there are not enough valid invoices and documents. Even there are expenses up to tens of millions of dong, but only the payment list and the signature of the payee as well as retail invoices that are not in accordance with regulations, have no legal validity. The improper financial management and spending leading to loss is unavoidable. The question here is: Is the amount spent on items without full invoices and documents in accordance with the law is reasonable and actually spent?

For clear information, the PV contacted Ha Nam Lottery One Member Limited Company and was told by Mr. Quach Anh Hien – Head of Administration Department of Ha Nam Lottery Company: “Ha Nam Lottery Company is owned by the Provincial People’s Committee. When the Commission has a directing document, we can provide relevant information to the press ”.

Although it was explained by the PV that related to the use and management of finance, the books on the side of Ha Nam Lottery Company are independent and autonomous, while the Provincial People’s Committee only manages people. For some reason, when the PV contacted Ha Nam Lottery Company many times but did not receive any answer, the company unit is avoiding providing information to the press. .

We keep informing readers.