The Government Inspectorate has just issued a notice concluding its inspection of the implementation of policies and laws in the state management of petroleum. The inspection agency mentioned a series of "big guys" in the petroleum business sector, due to violations in the course of business operations.

Continuously administratively punished

According to the inspection results, 7 out of 15 key petroleum traders used the price stabilization fund for the wrong purpose of price stabilization, not transferring it to the price stabilization fund account but leaving it in the business's regular payment account for many periods before returning it to the price stabilization fund, with a total amount of more than 7,927 billion VND.

Among them, 3 key petroleum traders have been administratively sanctioned by competent state agencies for violations 3 times or more. Specifically, Hai Ha Waterway Transport Company Limited was fined 4 times, Xuyen Viet Oil Trading, Transport and Tourism Company Limited was fined 3 times, and Thien Minh Duc Group Joint Stock Company was fined 3 times.

In addition, three key petroleum traders have set aside and used the price stabilization fund for a volume of petroleum exceeding the volume on the books, leading to incorrect setting aside of the price stabilization fund of more than VND4.7 billion and incorrect use of the price stabilization fund of more than VND22 billion.

Specifically, Hai Ha Waterway Transport Company Limited set aside more than VND4.7 billion for the price stabilization fund. Other companies that spent more than VND4.6 billion were Long Hung Trading and Service Company Limited, Hai Ha Waterway Transport Company Limited, and more than VND14 billion.

According to the inspection results, Xuyen Viet Oil Trading, Transport and Tourism Company Limited set up a price stabilization fund that was short by more than 3 billion VND, and Dong Thap Petroleum Trading Joint Stock Company made some accounting entries to reduce the price stabilization fund by more than 10 billion VND, which was not in accordance with accounting principles.

Although a number of petroleum traders have been administratively sanctioned many times, the Ministry of Industry and Trade has not promptly considered and handled the suspension of business operations or revoked the certificate of eligibility to be a petroleum trader. This has led to the price stabilization fund being continuously appropriated and misused by the traders.

Paradox of environmental protection tax

The inspection results also showed that due to the General Department of Taxation (Ministry of Finance) and many tax departments' incomplete implementation, improper regulations, and lack of inspection and supervision, many key petroleum traders owed thousands of billions of VND in environmental protection tax for many periods and many years.

The Government Inspectorate determined that as of September 30, 2022, 6 out of 15 inspected petroleum traders owed environmental protection tax with a total amount of more than VND 3,219 billion.

Notably, despite still owing the state budget environmental protection tax, some key petroleum traders have lent thousands of billions of dong to many individuals for personal use.

In particular, from 2017 to 2022, Thien Minh Duc Group Joint Stock Company lent more than VND 7,485 billion to Mr. Chu Dang Khoa, Deputy General Director, and Ms. Chu Thi Thanh, Chairwoman of the Board of Directors of this company. At the time of inspection, the two individuals above still owed the company a total of more than VND 1,396 billion.

Similarly, Xuyen Viet Oil Trading, Transport and Tourism Company Limited has a negative equity of more than VND462 billion, owes the State over VND1,246 billion in environmental protection tax, and owes the price stabilization fund over VND212 billion. However, the company is currently owing Ms. Mai Thi Hong Hanh, Chairwoman of the Board of Directors of this company, over VND2,978 billion.

5 years, enjoy price difference of more than 9,770 billion VND

Notably, the Government Inspectorate said that, stemming from regulations issued by the Ministry of Industry and Trade, many illegal acts of buying and selling gasoline have occurred, causing the gasoline trading system to be disrupted.

When buying and selling gasoline from each other, the main gasoline traders have become distributors, having the opportunity to buy and sell through intermediaries, increasing circulation costs. Typically, Nam Phuc Investment Joint Stock Company acts as an intermediary in buying and selling gasoline, enjoying a price difference of more than 2 billion VND.

This reality also creates an intermediate level to enjoy discounts and price differences. In just 5 years, some key traders in the petroleum business bought and sold petroleum and enjoyed discounts or price differences of up to more than 9,770 billion VND.

The inspection results also showed that due to the Ministry of Industry and Trade's lax management and lack of strict handling, petroleum trading activities have become complicated, with many illegal trading activities occurring frequently over a long period of time.

Specifically, Dong Thap Petroleum and Trading Joint Stock Company authorized the purchase and sale of gasoline to companies that were not subsidiaries and were not granted a certificate of eligibility to act as gasoline distributors.

For example, the Vietnam National Petroleum Group (Petrolimex) authorizes its subsidiaries to sign contracts to buy and sell petroleum with other key traders and re-export petroleum, with an output of more than 4.4 million ^m3 , while Petrolimex's joint stock companies re-export petroleum with an output of more than 6.2 million ^m3 .