CMSC aims to improve accountability for State capital use

14:16 | 08/10/2018 Finance - Banking

The establishment of the Committee for Management of State Capital (CMSC) aims to improve accountability for the use and management of State capital in business operations, thereby preventing loss and wastefulness, Deputy Minister of Planning and Investment Le Quang Manh told a press conference in Hanoi on October 1. 

Deputy Minister of Planning and Investment Le Quang Manh

Manh said that on September 29, the Government issued Decree No.131/2018/ND-CP, regulating the function, mission, responsibility, and structure of the CMSC as well as the legal framework for its operations.

The CMSC will manage 19 State-owned economic groups and corporations where the State holds a 100 percent stake, as well as at joint stock companies and limited liability companies with multiple members where the State have invested its capital.

The Deputy Minister made it clear that the CSMC will only monitor the use of State capital rather than directly intervening in their production and trade.

According to consolidated financial statements by December 31, 2017, the total value of State equity at these 19 groups and corporations reached more than 1 quadrillion VND (US$43 billion) and the total value of assets was 2.3 quadrillion VND (US$99 billion).

The committee, established by the Government, has one chairperson and at most four vice chairpersons appointed or dismissed by the Prime Minister.

The aforementioned 19 enterprises are run by five ministries. Topping the list is the State Capital Investment Corporation (SCIC) under the management of the Ministry of Finance. The remaining 18 SOEs are managed by the Ministry of Industry and Trade (MoIT), the Ministry of Transport (MoT), the Ministry of Agriculture and Rural Development (MARD), and the Ministry of Information and Communications (MIC).

Most of the names on the list are enterprises under the management of the MoIT and MoT, comprised of six groups and six corporations.

The CMSC, known as the “super committee”, made its debut in Hanoi on September 30.

Theo VNA