The Ministry of Finance has stated that although some officials hold concurrent appointments as officials of the SCIC, the most they earn from the latter responsibilities is around VND2 million a month.

The sensational story as reported by Tien Phong newspaper was summarized by VietNamNet on December 11.

The salary of other officials at the State Capital Investment Corporation (SCIC) and of managers at Jetstar Pacific Airlines will be disclosed on December 15.

Under Decision 152 dated June 20, 2005 signed by the Prime Minister, the SCIC’s management board includes permanent and non-permanent members. In 2007, the non-permanent members were Cao Viet Sinh, Deputy Minister of Planning and Investment and Do Huu Hao, Deputy Minister of Industry and Trade.

Since 2008, the non-permanent members have been Vu Van Ninh, Minister of Finance, Tran Xuan Ha, Deputy Minister of Finance, Cao Viet Sinh, Deputy Minister of Planning and Investment and Do Huu Hao, Deputy Minister of Industry and Trade.

According to the Finance Ministry, these officials only receive allowances from SCIC in accordance with the state regulations, 1.42 million dong per month in 2007 and 2.18 million dong in 2008. They receive no other payments from SCIC.

The Ministry statement pointed out that the Management Board of Jetstar Pacific Airlines (JPA) decides the salary paid to its managers, in accordancy with Articles 108 and 117 of the Enterprise Law 2005.

Because Jetstar Pacific has been running at a loss, the Finance Ministry instructed SCIC (which holds 70 percent of the airline’s shares) to consider the budget carrier’s operations with a view to cost-cutting and increased effectiveness. JPA is to check its routes, restructure personnel, cut foreign employees and amend its wage policy.

According to SCIC, JPA has reduced the number of foreign managers from 12 to 5. The salary for Vietnamese officials has been reduced by at least 25 percent. These moves are said to help Jetstar Pacific save about $1.5 million in 2009.

The Finance Ministry also asked SCIC to report to the Prime Minister the operation of Jetstar Pacific and propose solutions to the firm’s problems for submission to the competent agencies.

VietNamNet/VNE