Circular No. 18/1998/TT-BTC guides the organization and operation of the lottery supervision witnessing council.

CIRCULAR

Guidelines for the organization and operation of the Lottery Witness Supervision Council

In order to gradually establish a system for supervising the lottery number drawing process, to effectively implement state laws and regulations on unified management of lottery issuance; the Ministry of Finance provides guidelines for the organization and operation of the Lottery Witness Supervision Council (hereinafter referred to collectively as the Lottery Supervision Council) as follows:

I. GENERAL PROVISIONS:

1. The Lottery Supervision Council shall be established in each province or centrally governed municipality where the lottery company's main office is located, to perform the task of supervising the organization of number drawings, the recovery and destruction of unsold lottery tickets according to regulations, and handling issues related to lottery activities to protect the interests of lottery ticket buyers.

2. The Lottery Supervision Council shall be established by the People's Committee of the province or centrally governed municipality with full membership as prescribed by the Ministry of Finance.

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

II. SPECIFIC PROVISIONS:

A. REGARDING THE ORGANIZATION AND MEMBERSHIP OF THE LOTTERY SUPERVISION COUNCIL
LOTTERY:

1. The membership of the Lottery Supervision Council includes:

Representative of the People's Committee of the province or centrally governed municipality serving as Chairman of the Council;

Representative of the Department of Finance and Prices: Vice-Chairman of the Council;

Representative of the State Inspectorate: Member;

Representative of the Department of Justice: Member; - Representative of the Public Security Department: Member;

Representative of the Lottery Company: Secretary of the Council.

Along with these members, the Department of Finance and Prices shall submit to the People's Committee of the province or centrally governed municipality to invite representatives from the People's Procuracy and the Vietnam Fatherland Front Committee to participate in the Council's supervision activities. When working, the Lottery Supervision Council must have all the prescribed members; in case of objective reasons, apart from the Lottery Company, at least the members representing the Department of Finance, the Public Security Department, and the People's Procuracy must also attend.

2. The Department of Finance and Prices shall submit to the People's Committee of the province or centrally governed municipality to issue a decision establishing the Lottery Supervision Council.

In case a member of the Lottery Supervision Council is transferred to another unit due to work requirements, the Department of Finance and Prices shall submit to the People's Committee of the province or centrally governed municipality to appoint a replacement in accordance with the prescribed membership.

B. DUTIES AND LIMITS OF THE LOTTERY SUPERVISION COUNCIL
LOTTERY:

1. Supervision of the organization of lottery draws:

a. Duties of the Council:

Supervise the lottery company in organizing the number drawing for various types of lotteries that require number drawing according to the principles of transparency, objectivity, and honesty; at the time and place announced, and ensure other relevant regulations in the lottery issuance rules of the Ministry of Finance for each specific type.

Before the official number drawing, check the lottery machine or ball cage, balls according to the specified requirements and ensure objectivity and honesty during the number drawing process.

Check and supervise the number of draws for each prize category according to the prize structure announced for each type of lottery.

Check and sign the record confirming the number drawing results immediately after the number drawing ends as a legal basis for public announcement.

Examine and handle issues related to the organization of number drawing and information on the results of the draw.

b. Powers of the Council:

During the supervision of the number drawing, the Lottery Supervision Council has the right to refuse to witness or not recognize the results of the draw or request a re-draw if:

The draw is not conducted at the prescribed time; the number drawing is not held at the designated location or the location for the draw has not been adequately prepared.

During the draw, the ball falls outside the designated area or for some reason, the result is unclear and inaccurate and cannot be used.

Multiple draws only produce one result in one prize category.

Has the right to recommend disciplinary action against company employees or council members who show signs of fraud in the organization of the number drawing or violate number drawing regulations.

2. Supervise the organization of the recovery of traditional lottery tickets, unsold lottery tickets, and the recovery of winning stubs of lottery tickets:

a. Duties of the Council:

a.1. For traditional lottery tickets:

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

Supervise the invalidation of tickets in accordance with regulations.

Supervise the counting, verification, and preparation of lists and packaging of recovered tickets in full quantity according to the order of each agent.

Supervise the sealing of all recovered tickets before storage.

Supervise the consolidation of the number of unsold tickets recovered, determine the number of tickets sold and revenue from ticket sales in the period by the lottery company. On this basis, the Lottery Supervision Council signs a confirmation record of the traditional lottery issuance period.

a.2. For instant lotteries:

Supervise the completion of the recovery and invalidation of lottery ticket stubs or retained parts and prize number lists in accordance with regulations; Verify the counting and comparison between the number of recovered stubs or retained parts and the prize number lists of each agent to ensure accuracy and objectivity.

Supervise the completion of the recovery and invalidation of unsold lottery tickets (if required to recover).

Supervise the sealing of lottery ticket stubs or retained parts after recovery within the prescribed time and ensure before the number drawing.

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

Supervise the consolidation of the number of recovered lottery ticket stubs or retained parts; The consolidation and preparation of lists of winning stubs or retained parts of lottery tickets; Determine the number of tickets sold and revenue from ticket sales in the period; The number of winning lottery tickets in each prize category and the value of prizes for the issuance period. On this basis, sign a consolidation record of relevant 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 for each issuance period when the official circulation period marked on the back of the ticket has expired (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 mixing of lottery tickets that reveal results immediately in accordance with the regulations set forth in the Ministry of Finance's rules on organizing the issuance of lottery tickets that reveal results immediately.

On this basis, the Supervisory Board signs the record of the mixing results.

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

b. Powers of the Council:

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

Unsold traditional lottery tickets and stubs or parts of the retained lottery slips of those agents who bring them for return after the specified time or tickets brought for recovery not on the prize draw day, without a list from the agent...

Stub of white lottery slip (without prize numbers).

The lottery agent enters into a contract with the company under the buyout form.

Review and approve the organization to destroy stored tickets that have exceeded their storage period.

Based on the report requesting the destruction of recovered lottery tickets of various types that have been redeemed or have exceeded the storage period as stipulated by the lottery company, the Lottery Supervisory Board approves and permits the lottery company to carry out the destruction.

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

4. Provide comments on lottery activities and handle specific issues reported by the lottery company.

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

The Lottery Supervisory Board has the right to request the lottery company to report on its lottery operations and propose appropriate solutions for each issue raised.

C. REGARDING THE ESTABLISHMENT OF THE LOTTERY SUPERVISORY BOARD
REGIONAL DESIGN:

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

In addition to the provincial and municipal Lottery Supervisory Boards, for areas where lottery activities are widespread throughout the province or city, depending on the specific situation, the lottery company may propose to the Department of Finance and Prices and the provincial or municipal Lottery Supervisory Board to consider establishing a Regional Lottery Supervisory Board to oversee the recovery and destruction of unsold tickets within the district, county, or town area.

a. Conditions for establishing a Regional Lottery Supervisory Board include:

Remote location from the main office of the company, difficult travel, and significant time consumption.

Large volume of ticket sales, effective lottery activities.

Strict management, meeting all requirements.

Adequate material conditions to ensure safety for organizing recovery points and serving the work of the Supervisory Board.

b. Members of the Regional Lottery Supervisory Board include:

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

Representative of the Financial Department of the district or town - Vice-Chairperson of the Board.

Representative of the Public Security Department of the district or town - Member.

Representative of the State Inspectorate of the district or town - Member.

Representative of the Lottery Company.

Additionally, invite representatives of the People's Procuracy at the same level to participate.

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

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

a. Regarding conditions for establishment:

The lottery company must have a transfer station for issuing lottery tickets outside the province approved by the provincial or municipal People's Committee 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.

Good compliance with state management requirements in the area where the transfer station is located.

b. Regarding procedures for establishment:

Based on these conditions, the lottery company should study and propose to the Department of Finance and Prices and the provincial or municipal Lottery Supervisory Board to send representatives to participate.

The members include:

Representatives of the member of the Provincial Department of Finance and Prices in the Lottery Supervisory Board responsible for overall supervision.

Representatives of the member of the Provincial Public Security Department.

Representatives of the member of the Provincial State Inspectorate.

Representative of the Lottery 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 while complying with the guidance and direction of the provincial Lottery Supervisory Board.

D. RESPONSIBILITIES OF THE LOTTERY COMPANY TOWARDS
THE LOTTERY SUPERVISORY BOARD:

To ensure the effective operation of the Lottery Supervisory Board, the lottery company must fulfill the following requirements:

1. Ensure conditions regarding: Workplace; Staff assisting the Board; Sample forms, records, funds for the Board's activities in accordance with financial regulations.

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

III. IMPLEMENTATION:

Pursuant to the provisions of this Circular, the lottery company shall conduct a comprehensive review and inspection of all issues related to the Lottery Supervisory Board, and propose to the Department of Finance - Prices for submission to the People's Committee of the province or city to reorganize the Lottery Supervisory Board in accordance with regulations. The decision to establish the Lottery Supervisory Board must be sent to the Ministry of Finance for monitoring and management.

This Circular takes effect fifteen days from the date of signature and replaces relevant provisions issued previously.

Any difficulties encountered during implementation should be reported to the Ministry of Finance for study and resolution./.