VietNamNet Bridge – The Government Inspectorate last week announced numerous wrongdoings at the state-run Electricity of Vietnam, the country’s sole power distributor.

According to the inspectorate, EVN invested VND121.8 trillion ($5.8 billion) in businesses out of EVN, much higher than its chartered capital of just VND76.7 trillion ($3.7 billion). Of the total, the group has poured nearly VND2 trillion ($95 million) into financing, banking, insurance and securities.

“EVN does not abide by the Ministry of Finance’s Circular 117/2010/TT–BTC and Decision 1876/QD–BTC. EVN’s investing in businesses out of EVN failed to show economic efficiency,” the inspectorate concluded.

In addition, EVN built up targets to define internal power selling prices for EVN SPC but lacked some receivables and expenses relevant to power distribution activities. The grant of VND3.2 billion ($150,333) from the basic depreciated capital source for EVN NPC to build a school for ethnic minority students in the northern province of Lai Chau’s Tan Uyen District was not in line with the purposes of using basic depreciated capital sources.

EVN wrongly transferred capital in 11 projects which have been completed and became operational, leading to power production costs increasing by an additional VND223.9 billion ($10.7 million) in 2011 in 11 projects. The group has not yet compiled regulations on salary payments, allowances, bonuses and other interests for its representatives.

EVN flouted Ministry of Finance restrictions when it bought two Toyota land cruisers worth VND3 billion ($142,857).

From 2005 to July 2012, EVN implemented 20 out of 42 projects lagging behind the schedule, causing power shortages and increasing input costs for the projects.

Furthermore, member companies of EVN also made many wrongdoings. For examples, EVN HCM invested VND141 billion ($6.7 million) in non-core businesses and lagging behind schedule at 66/113 projects, causing extra costs, or North Power Corporation injected VND52 billion ($2.5 million) into non-core areas.

Source: VIR