In a report submitted to the National Assembly Saturday, the agency said it found many inadequacies in the management and use of state capital in 235 subsidiaries operating under 36 corporations or groups in 2019.It said that many of these subsidiaries have shown signs of lacking financial security. At the top of this list is the Vietnam Coal & Mineral Group (TKV), with 24 subsidiaries cautioned about their financial safety.Those with higher financial risk have been put on a special financial supervision watchlist. These include major names like budget carrier Jetstar Pacific Airlines, a subsidiary of national carrier Vietnam Airlines; Ninh Binh Fertilizer, Ha Bac Nitrogenous Fertilizer and DAP-Vinachem Fertilizer plants in northern Vietnam which are subsidiaries of chemical giant Vinachem; and Petrolimex Laos, a subsidiary of national petroleum distributor Petrolimex.Many companies were found without any capital management rules, engaging in ineffective cash flow practices. The problem of cross-ownership of subsidiaries within a corporate group has also not been overcome, the auditing agency said. For instance, six subsidiaries of TKV were found to have contributed capital to the Cam Pha Thermal Power Plant, while two state-owned parent corporations contributed capital to the Nong Son Coal Plant.Many companies and corporations have also been… Read full this story
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