Legal Counselling

Guidelines for handling of losses assets of Vietnam Environment Protection Fund

Kim Linh

08:59, 29/02/2016

The Management Board, Executive Committee and Director of the Fund shall be responsible to the law and state administration agencies for managing capital and assets of the Vietnam Environment Protection Fund, ensuring purposeful and effective use of capital, and complying with regulations on financial management, accounting and audit.

According to Circular No. 132/2015/TT-BTC, upon losses on assets, the Fund must determine lost value, causes, responsibility and handle as follows:

- Determine objective reasons (natural disasters, diseases, conflagration, accidents, and political risks) and subjective reasons.

- In case of subjective reasons, organizations or individuals causing losses must make compensations as prescribed. The Management Board shall make decisions or authorize the director of the Fund to make decisions on level of compensation and take responsibility for its decisions.

- Any asset that is insured shall be handled according to laws in the area of insurance.

- Value of the asset after losses are compensated for by organizations and individuals that cause the loss and insurance organizations shall be accounted for as expenses in the period.

- In special cases such as natural disasters or force majeure events that cause serious damage beyond control of the Fund, the director of the Fund shall make reports to the Management Board on handling measures for submission to the Minister of Natural Resources and Environment for decision.
View more details at Circular No. 132/2015/TT-BTC of the Ministry of Finance of Vietnam, effective from January 01, 2016.

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