Circular No. 118/2002/TT-BTC guides the organization and operation of the lottery supervisory council.

CIRCULAR

Guidelines for the organization and operation of the Supervisory Council

witnessing lottery draws

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In order to gradually establish a system for supervising the witnessing of lottery draws, ensuring compliance with state laws and regulations on unified management of lottery issuance; the Ministry of Finance provides guidelines for the organization and operation of the Supervisory Council for witnessing lotteries (hereinafter referred to collectively as the Supervisory Council for Lotteries) as follows:

I. The Project Owner is the Ministry of Planning and Investment, People's Committees of Hoa Binh, Son La, Lao Cai, Yen Bai, Phu Tho, and Bac Giang provinces. To implement the project and coordinate activities within the Project, the Project Owners establish the Project Management Board.

1. The Supervisory Council for Lotteries shall be established in each province or centrally governed city where the lottery company's main office is located to perform the task of supervising the organization of lottery draws, the recovery and invalidation of unsold lottery tickets, and handling certain issues related to lottery activities to protect the interests of lottery ticket buyers.

2. The Supervisory Council for Lotteries shall be established by the People's Committee of the province or centrally governed city in accordance with the provisions of the Ministry of Finance.

3. The lottery company is responsible for ensuring material conditions to serve the operations of the Supervisory Council for Lotteries in accordance with the prescribed financial regulations. The company must regularly report to the Supervisory Council for Lotteries on the results of its lottery activities to guide supervision.

II. SPECIFIC PROVISIONS:

A. REGARDING THE ORGANIZATION AND COMPOSITION OF THE SUPERVISORY COUNCIL FOR LOTTERIES:

1. The composition of the Supervisory Council for Lotteries includes:

- Representative of the People's Committee of the province or centrally governed city serving as Chairman of the Council.

- Representative of the Department of Finance and Prices serving as Vice-Chairman of the Council.

- Representative of the State Inspectorate serving as a member of the Council.

- Representative of the Department of Justice serving as a member of the Council.

- Representative of the Public Security Department serving as a member of the Council.

- Representative of the Lottery Company serving as Secretary of the Council.

In addition to these members, the Department of Finance and Prices shall invite representatives of the Vietnam Fatherland Front to participate in the Council's supervisory activities upon the request of the People's Committee of the province or centrally governed city.

When conducting work, the Supervisory Council for Lotteries must have all the stipulated members present. In cases where some members are absent due to unforeseen circumstances, at least the representatives from the Department of Finance, the Public Security Department, and the Department of Justice must be present.

2. The Department of Finance and Prices shall submit to the People's Committee of the province or centrally governed city for issuance:

- Decision establishing the Supervisory Council for Lotteries;

- Decision promulgating the operational rules of the Supervisory Council and the responsibilities of its members.

In case of work requirements, if a member of the Supervisory Council for Lotteries transfers to another unit, the Department of Finance and Prices shall submit to the People's Committee of the province or centrally governed city for replacement in accordance with the stipulated composition.

B. DUTIES AND POWERS OF THE SUPERVISORY COUNCIL FOR LOTTERIES:

1. Supervision of the organization of lottery draws:

a. Duties of the Council:

- Supervise the lottery company in organizing lottery draws for various types of lotteries that involve number draws according to the principles of transparency, objectivity, and honesty; at the time and location announced, and in compliance with other relevant regulations in the issuance rules of the Ministry of Finance for each specific type of lottery.

- Inspect the lottery drawing machine or ball cage, balls before the official lottery draw according to regulations ensuring fairness and transparency during the lottery draw process.

- Monitor the number of draws for each prize category in accordance with the prize structure announced for each type of lottery.

- Check and sign the record confirming the results of the lottery draw immediately after the draw ends, serving as a legal basis for public announcement.

- Examine and handle issues related to the organization of the lottery draw and information about the draw results.

b. Powers of the Council:

- During the supervision of the lottery draw, the Supervisory Council for Lotteries has the right to refuse to witness the draw or not recognize the draw results or require the re-draw of the winning numbers if:

+ The lottery company conducts the draw outside the specified time or location, or the draw location is not adequately prepared.

+ During the draw, the ball falls out of the designated area or the draw results are unclear, inaccurate, or unusable.

+ Multiple draws result in the same outcome for a particular prize category.

- Has the right to recommend disciplinary action against company employees or council members who exhibit fraudulent behavior in organizing the lottery draw or violate draw regulations.

2. Supervision of the organization of the recovery of traditional lottery tickets, lottery tickets that have not been sold and the recovery of stubs of winning tickets for instant lottery:

a. Duties of the Council:

a.1. For traditional lotteries:

- Supervise the recovery of unsold tickets in accordance with the issuance rules of each corresponding type.

- Supervise the invalidation of tickets in accordance with regulations.

- Supervise the counting, verification, and compilation of lists and packaging of recovered tickets from each agent in full quantity.

- Supervise the sealing of all recovered tickets before storage.

- Check and supervise the consolidation of the number of unsold tickets recovered, determining the number of tickets sold and revenue from ticket sales during the period. On this basis, the Supervisory Council for Lotteries signs a confirmation record of the traditional lottery issuance period.

a.2. For instant lotteries:

- Supervise the recovery and invalidation of stubs or retained parts of instant lottery tickets in accordance with regulations. Verify the count and comparison between the recovered stubs or retained parts of tickets with the list of numbers for each agent to ensure accuracy, fairness, and honesty.

- Supervise the completion of the recovery and invalidation of unsold instant lottery tickets (if required).

- Supervise the sealing of instant lottery ticket stubs or retained parts after recovery within the specified time and before the draw.

- Supervise the opening of seals to retrieve winning stubs or retained parts according to the draw results for each prize category.

- Check and supervise the consolidation of the number of recovered instant lottery ticket stubs or retained parts; compile a list of winning instant lottery ticket stubs or retained parts; determine the number of tickets sold and revenue from ticket sales during the period; the number of winning instant lottery tickets in each prize category and the value of prizes for the issuance period. On this basis, sign a consolidation record of related data.

a.3. For instant win scratch-off lotteries:

- Monitor the recovery and counting of unsold tickets that agents are permitted to return according to regulations and tickets not yet put into circulation from the same issuance round when the official circulation period marked on the back of the ticket expires (including any extended period if applicable).

- Monitor the invalidation of recovered tickets in accordance with the prescribed regulations.

- Confirm the data on unsold tickets recovered for each issuance series.

a.4. For instant scratch-off lottery tickets:

- Monitor the shuffling of instant scratch-off lottery tickets in accordance with the regulations on organizing the issuance of instant scratch-off lottery tickets set forth by the Ministry of Finance. On this basis, the Supervisory Board signs the minutes of the shuffle results.

- Monitor the recovery and counting of unsold tickets returned by agents (if return is allowed) and tickets not yet put into circulation from the same series at the company upon expiration of the issuance period; monitor the invalidation of recovered tickets; the consolidation of the quantity of recovered tickets as the basis for determining the number of tickets consumed for each series.

b. Powers of the Council:

The Supervisory Board of Lottery Tickets has the right to require the lottery ticket company not to accept the recovery of tickets from agents in the following cases:

+ Unsold traditional lottery tickets and stubs or the retained portion of lottery tickets brought by agents after the specified time or tickets brought for recovery not on the draw date, without an agent's list...

+ Blank lottery ticket stubs (without prize numbers)

+ Agents of lottery tickets who enter into contracts with the company under the buyout model.

3. Examine and approve the organization of destroying stored tickets beyond their storage period.

Based on the report requesting the destruction of various types of recovered or expired lottery tickets beyond their storage period submitted by the lottery ticket company, the Supervisory Board of Lottery Tickets approves and permits the company to carry out the destruction.

The Supervisory Board of Lottery Tickets has the right to request the lottery ticket company to explain its storage work, change the method of destruction or arrange members of the board responsible for supervising the destruction of the company (if necessary).

4. Contribute opinions on lottery ticket operations and handle specific issues reported by the lottery ticket company.

Based on actual supervision work, the Supervisory Board of Lottery Tickets participates in providing opinions on lottery ticket operations and recommending improvements to management mechanisms. At the same time, it handles specific issues related to the issuance of lottery tickets reported by the lottery ticket company.

The Supervisory Board of Lottery Tickets has the right to request the lottery ticket company to report on its operational status and propose appropriate solutions for each issue raised.

c. Regarding the establishment of the Supervisory Board of Lottery Tickets in regions:

1. For regions operating according to provincial or city markets:

In addition to the Provincial or City Supervisory Board of Lottery Tickets, for areas where lottery ticket operations are widespread throughout the province or city, depending on specific circumstances, the lottery ticket company proposes to the Department of Finance and Prices and the Provincial or City Supervisory Board of Lottery Tickets to consider and submit to the People's Committee of the province or city for approval to establish a Regional Supervisory Board of Lottery Tickets to oversee the recovery and destruction of unsold tickets within the district, county, or town area.

a. Conditions for establishing a Regional Supervisory Board of Lottery Tickets are:

- Remote location from the main office of the company, difficult travel, and time-consuming.

- Large volume of ticket sales and effective lottery ticket operations.

- Strict management meeting all requirements.

- Adequate material conditions ensuring safety to organize recovery points and serve the work of the Supervisory Board of Lottery Tickets.

b. Composition of the Regional Supervisory Board of Lottery Tickets includes:

+ Representative of the People's Committee of the district or town where the recovery point is organized - Chairman of the Board.

+ Representative of the District or Town Finance Office - Vice-Chairman of the Board.

+ Representative of the District or Town Public Security Office - Member.

+ Representative of the State Inspectorate of the District or Town - Member.

+ Representative of the Lottery Ticket Company.

The Regional Supervisory Board of Lottery Tickets must comply with state regulations and implement the assigned monitoring procedures and responsibilities.

2. For regions implementing a common market mechanism, the organization of a representative body of the Provincial Supervisory Board of Lottery Tickets to supervise the recovery and destruction of unsold tickets outside the province is regulated as follows:

a. Regarding conditions for establishment:

- The lottery ticket company must have a transfer station for issuing lottery tickets outside the province, approved by the People's Committee of the province or city to establish or have an appropriate organizational form to ensure safety for conducting recovery of unsold tickets outside the province.

- Large volume of ticket sales and effective operations.

b. Regarding procedures for establishment:

Based on the above conditions, the lottery ticket company studies and proposes to the Department of Finance and Prices and the Provincial or City Supervisory Board of Lottery Tickets to send representatives to participate.

- Members include:

+ Representative of the member of the Provincial or City Department of Finance and Prices in the Supervisory Board of Lottery Tickets responsible for overall management.

+ Representative of the member of the Provincial or City Public Security Department.

+ Representative of the member of the Provincial or City State Inspectorate.

+ Representative of the Lottery Ticket Company.

Supervision of the recovery and destruction of unsold tickets outside the province must also be carried out in accordance with current regulations of the Ministry of Finance and must follow the guidance and direction of the Provincial Supervisory Board of Lottery Tickets.

C. RESPONSIBILITIES OF THE LOTTERY TICKET COMPANY TOWARDS THE SUPERVISORY BOARD OF LOTTERY TICKETS:

To help the Supervisory Board of Lottery Tickets operate effectively, the lottery ticket company must:

1. Ensure conditions regarding: Workplace; staff assisting the Board; sample forms, minutes, financial resources serving the activities of the Board in accordance with the prescribed financial regulations.

2. Provide relevant legal documents related to lottery ticket operations to support the specific monitoring activities of the Board.

III. IMPLEMENTATION:

Based on the provisions of this Circular, the lottery ticket company conducts a comprehensive review and inspection of all contents related to the organization and operation of the Supervisory Board of Lottery Tickets, and proposes to the Department of Finance and Prices to submit to the People's Committee of the province or city to reorganize the Supervisory Board of Lottery Tickets in accordance with regulations.

The decision to establish the Supervisory Board of Lottery Tickets should be sent to the Ministry of Finance for monitoring and management.

This Circular takes effect 15 days from the date of signature and replaces Circular No. 18/1998/TT-BTC dated February 13, 1998, guiding the organization and operation of the Provincial or City Supervisory Board of Witnessing Lottery Tickets.

In the course of implementation, if there are any difficulties, they are recommended to be reported to the Ministry of Finance for study and resolution.