PHÂN TÍCH BÊ BỐI GIAN LẬN CỦA HẠ LONG CANFOCO

FRAUD OF HALONG CANFOCO
Ha Long Canned Food Joint Stock Company (HaLong CANFOCO) was established
in 1957 in Hai Phong.The company is the pioneer of the food processing industry in
Vietnam. The company started listing with the CAN stock code 18/10/2001 at the Ho
Chi Minh Stock Exchange (HOSE). As of 01/06/2009, the company has been listed on
the Ha Noi Stock Exchange (HNX).
In 2001, the company was involved in a financial fraud case about appropriating
value-added tax (VAT) refunds and was subsequently released. Concerning this case,
five defendantsincluding the former chief executive, the chief of the sales department
and three other public servants went to court.
About how to make fraud, in 2001, the former director of the company and four of his
accomplices signed 13 economic contracts related to the purchase of agricultural
products worth tens of billion VND with some Southern Viet Nam companies. After
that, two sales bureau personnel forged 4 sets of export documents to China, with full
customs clearance. The sales manager of the company also directed the person to open
80 export declarations to China. After that, the company has deliberately completed
the application for VAT refund in order to appropriating funds from the budget. That
is, the company had to pay for input VAT for this inventories, then the company
exported all of these shipments to China, where the VAT rate applied to the exports
was 0% Of course, if the tax authorities do not detect, the company will be refunded
input VAT.
This has cost more than 7.3 billion VND of budget. In addition, the act of posting
false information on the stock market is considered deceptive with the company’s
shareholders. The company was fined 10 milion VND by the HOSE on this matter.
According to the survey, more than 100 billion in revenue of the company (from
counterfeit export contracts to China) is the virtual number. Such disclosure causes the
shareholders and other users of the financial statements to misrepresent the company's
performance, resulting in some consequences, such as the influence of the strategies of
the investors or lender. For example, making up for financial statements will cause
lenders to loosen their lending policies and increase their debt recovery.