Companies’ financial reports are false

Almost all financial reports by companies fail to reflect their true worth, whether they are property, cost, turnover or business results, said the State Auditing Board at a press conference recently.

The auditors inspected 224 businesses, as part of 16 state owned entities.

Of the 224 companies, 208 made profits in 2008, while 16 made losses.

According to a report, Electric Vietnam, Vietnam National Coal-Mineral Industries Group, Vietnam National Shipping Lines and Saigon Beverage returned to being in the black.

State-owned groups have invested in many fields. Those fields, such as finance, banking and real estate have, lured most investment from state–owned groups, however, they did not make much profits, especially stocks investments, due to the recession of the financial markets last year. 

One of the hot issues in the report was waste. The state auditors suggested waste could be cut down by VND2.74 trillion.

The cause of such wastefulness is ignorance in planning and approving projects using the State’s money.

The report also asked the groups to return VND7.7 trillion to the State because of over-expenses.

Auditors suggested increasing the State budget with VND4.2 trillion from income tax, export tariff and other such fees.

Auditors also uncovered that money to be returned to the State by 2007 totaled just 67.3 percent of that required.

By Ng. Quang-Translated by Ngoc Minh

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