Circular No. 74/2007/TT-BTC guides on the composition, tasks, and powers of the Lottery Supervisory Board.

CIRCULAR

Guidelines on the composition, tasks, and authorities

of the Lottery Supervisory Council

____________________

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, authorities, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 30/2007/NĐ-CP dated March 1, 2007 of the Government on lottery business.

The Ministry of Finance issues guidelines on the composition, tasks, and authorities of the Lottery Supervisory Council as follows:

I. SCOPE OF REGULATION

1. This Circular guides the authority to establish, composition, tasks, and authorities of the Lottery Supervisory Council overseeing certain aspects of lottery business operations of Lottery Enterprises (hereinafter referred to as the Lottery Supervisory Council), including:

1.1. Supervising the organization of drawing lotteries for traditional lotteries, hand-picked lotteries (referred to as Lotto), computerized lotteries, and instant lotteries.

1.2. Supervising the recovery, counting, invalidation of unsold lottery tickets; stubs or retained parts of recovered Lotto lottery tickets.

2. The draw for instant lotteries is conducted according to a pre-established random software program allocating prizes. The Lottery Enterprise and the printing entity bear responsibility for the fairness and objectivity of the draw results and the consistency between the number and value of prizes with the prize structure announced for each issuance period.

II. AUTHORITY TO ESTABLISH, COMPOSITION, AND OPERATING MECHANISM OF THE LOTTERY SUPERVISORY COUNCIL

1. Authority to Establish

The Lottery Supervisory Council is established by the People's Committee of the province or centrally-administered city representing the owner of the Lottery Enterprise upon the proposal of the Director of the Department of Finance of the province or city.

2. Composition of the Lottery Supervisory Council

2.1. The Lottery Supervisory Council includes the following components:

a) Representative of the People's Committee of the province or centrally-administered city: Chairman of the Council.

b) Representative of the Department of Finance: Vice-Chairman of the Council.

c) Representative of the Department of Public Security: Member.

d) Representative of the Department of Justice: Member.

đ) Representative of the State Inspectorate of the province or centrally-administered city: Member.

e) Representative of the Leadership (Director or Deputy Director) of the Lottery Enterprise: Member and Secretary of the Council.

g) In addition to the aforementioned members, the Department of Finance shall propose the People's Committee of the province or centrally-administered city to invite representatives of the Vietnam Fatherland Front to participate in the Lottery Supervisory Council as Members.

2.2. Members of the Lottery Supervisory Council must not be related to each other, including: spouse, parent, adopted parent, child, adopted child, brother, sister, or half-sibling.

3. Change in Composition of the Lottery Supervisory Council

3.1. Members of the Lottery Supervisory Council may be changed in the following cases:

a) Transfer of duties or reassignment to another position.

b) Violation of discipline at the workplace or during the performance of duties of the Lottery Supervisory Council.

c) Resignation or retirement in accordance with regulations.

d) Other necessary cases.

3.2. The change in membership of the Lottery Supervisory Council is decided by the People's Committee of the province or centrally-administered city.

4. Operating Mechanism of the Lottery Supervisory Council

4.1. The Lottery Supervisory Council must have sufficient members when performing its duties. In case of objective reasons preventing full participation of members, apart from the representative of the Leadership of the Lottery Enterprise, there must be a minimum of three members representing the Department of Finance, the Department of Public Security, and the Department of Justice present.

In the absence of the Chairman of the Lottery Supervisory Council, the Vice-Chairman shall act as the Chairman to oversee the activities of the Council.

4.2. The Lottery Supervisory Council operates based on consensus. In case of differing opinions on the same issue, it shall be handled as follows:

a) A decision is passed if more than 50% of the attending members of the Council agree.

b) If the number of supporters and opposers is equal, the decision is implemented according to the agreement of the Chairman of the Council, or the Vice-Chairman in the absence of the Chairman.

4.3. The Lottery Supervisory Council operates on a part-time basis, except for the representative of the Leadership of the Lottery Enterprise.

III. TASKS AND AUTHORITIES OF THE LOTTERY SUPERVISORY COUNCIL

1. Tasks and Authorities of the Lottery Supervisory Council

1.1. Supervising the Organization of Drawing Lotteries

1.1.1. Duties of the Council:

a) Inspect the quantity; origin of the drawing equipment (ball cages, balls, electronic scales, ball testing devices); technical specifications of the equipment according to the manufacturer's design.

b) Inspect the quantity and compliance with conditions of individuals selected to participate in the drawing process according to the list and relevant documents provided by the Lottery Enterprise as prescribed.

c) Supervise the inspection of the operation of ball cages before use and after maintenance; supervise the inspection of the weight and size of balls before use and periodic inspections as prescribed.

d) Appoint members to randomly select sets of balls for use in the drawing process.

đ) Appoint members to seal and unseal the drawing equipment (ball cages, boxes containing sets of balls, electronic scales, devices for measuring ball sizes).

e) Supervise the shuffling of tickets prior to the drawing process (for instant lotteries).

g) Inspect the arrangement of imaging equipment (cameras, television screens) to ensure ease of observation and monitoring of the drawing process by the Council and witnesses.

h) Supervise adherence to regulations regarding time, location, announcement of the rules of the drawing, and the sequence of steps in the drawing process.

k) Supervise the activities of the person conducting the drawing during the drawing process.

i) Sign a confirmation record of the monitored results and lottery draw results as a basis for the Lottery Enterprise to publicly announce to participants.

1.1.2. Authorities of the Council:

a) Require the Lottery Enterprise to provide new, additional, remove, or replace equipment that does not meet standards for the drawing process.

b) Selecting balls randomly for inspection regarding weight and size before the draw number is announced (in cases where it is deemed necessary).

c) Temporarily suspend number drawing in the following cases:

- The equipment used for the draw number announcement is unsealed prior to the Council's commencement of work.

- The equipment does not meet the requirements for establishing the objectivity and fairness of the lottery draw results.

- Conducting the draw outside the announced schedule (date and time) and location.

- There are signs of fraud during the draw number announcement.

d) The Supervisory Council has the right to request the Lottery Company to conduct the draw number announcement again in the following situations:

- Organizing the draw number announcement in a sequence different from that announced in the rules of the draw.

- During the draw, the ball falls out of the drum.

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

đ) Request disciplinary action or refer cases of violations or fraudulent behavior during the organization of the draw number announcement to the competent authority for investigation and handling according to the provisions of the law.

1.2. Supervise the recovery, counting, invalidation of unsold lottery tickets; stubs or retained parts of recovered Lotto lottery tickets.

1.2.1. Duties of the Council:

a) For traditional lotteries:

- Supervise the recovery and invalidation of unsold lottery tickets (including those not yet put into circulation).

- Supervise the counting, verification, listing, and packaging of recovered tickets.

- Supervise the sealing of recovered tickets before the draw number announcement according to the prescribed regulations and before storage.

- Check and supervise the consolidation of the quantity of unsold tickets recovered, determine the number of sold tickets and revenue from ticket sales in the period by the Lottery Company. Based on this, the Lottery Supervisory Council signs a confirmation record of the issuance results of traditional lotteries.

b) For instant win lotteries (scratch-off):

- Supervise the recovery, counting, and verification between the stubs or retained parts of recovered tickets with the list of prize numbers of each agent.

- Supervise the sealing of stubs or retained parts of Lotto lottery tickets before the draw number announcement according to the prescribed regulations.

- Supervise the opening of seals to extract winning stubs or retained parts according to the draw results for each prize category; supervise the re-sealing of stubs or retained parts of Lotto lottery tickets before storage.

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

- Check and supervise the consolidation of the quantity of recovered stubs or retained parts of Lotto lottery tickets; the consolidation of lists of winning stubs or retained parts of Lotto tickets; determination of the number of tickets sold and revenue from ticket sales in the period; the number of Lotto tickets winning each prize category and the value of prizes for the issuance round. On this basis, sign a summary record of the issuance results of Lotto lotteries.

c) For instant win lotteries (scratch-off, peel-off):

- Supervise the completion of the recovery, counting of unsold tickets returned by agents and tickets not yet circulated in the same issuance round when the tickets expire.

- Supervise the invalidation of recovered tickets according to the prescribed regulations.

- Confirm the data of unsold tickets recovered for each ticket series (serial number) issued.

1.2.2. Powers of the Council:

a) The Lottery Supervisory Council has the right to request the Lottery Company not to recover tickets from lottery agents in the following cases:

- Unsold lottery tickets; stubs or retained parts of Lotto lottery tickets brought by agents for submission after the specified time or tickets submitted for recovery not on the draw date, not ensuring the prescribed submission procedures.

- Stubs or retained parts of Lotto lottery tickets without prize numbers.

- Agents apply the immediate payment method for purchasing lottery tickets upon receipt of tickets for sale.

b) Request disciplinary action or propose relevant authorities to investigate and handle violations or fraudulent practices in the recovery and counting of unsold tickets;

2. Duties and powers of the Chairman of the Lottery Supervisory Council

2.1. The Chairman of the Council is the leader and manager of the Lottery Supervisory Council, responsible for organizing the implementation of the duties and powers of the Lottery Supervisory Council as stipulated in this Circular and the Operational Regulations of the Council issued by the People's Committee of provinces and centrally-administered cities.

2.2. The Chairman of the Lottery Supervisory Council has the following duties and powers:

a) Assign specific tasks to each member of the Supervisory Council; coordinate and direct members to perform assigned tasks.

b) Has the right to retain personal opinions on issues related to supervision results and draw number announcement results.

c) Is entitled to receive additional compensation for兼任职务补贴，按照规定制度。

3. 其他监事会成员的职责和权限

3.1. 在监督抽奖活动和回收、清点、封存未售出的彩票；回收的乐透彩票存根或保留部分的过程中，遵守国家的规定。

3.2. 执行监事会主席分配的任务，并对所分配任务的结果负责。

3.3. 及时向监事会主席报告在执行任务过程中发现的违规行为或可疑表现，以便监事会主席及时审查并决定处理措施。

3.4. 在执行分配任务的过程中，有权保留个人意见。

3.5. 享有兼任职务补贴，按照规定制度。

IV. 相关机构的责任

1. 财政局的责任

1.1. 制定并提交省、直辖市人民委员会发布实施监事会运作的法律文件，包括：

a) 成立监事会的决定。

b) 发布监事会运作规定的决定。

c) 监事会成员兼任职务补贴的标准。

1.2. 协助省、直辖市人民委员会监督、检查各彩票公司遵守由省、直辖市人民委员会发布的监事会运作规定和其他相关规定的经营活动。

2. 彩票公司的责任

2.1. 遵守国家关于彩票经营活动的规定，并接受监事会在组织抽奖活动和回收、清点、封存未售出的彩票；回收的乐透彩票存根或保留部分过程中的监督。

2.2. Ensure the necessary material conditions for the supervision by the Lottery Supervisory Board.

The costs serving the supervision work and the allowances for兼任职务的津贴 of the members of the Lottery Supervisory Board shall be included in the business expenses of the Lottery Savings Company.

V. IMPLEMENTATION

1. Based on actual business operating conditions, if necessary, the Lottery Savings Company proposes to the Department of Finance to submit to the People's Committee of the province or city to establish a regional supervisory board at the district level or at locations outside the province to supervise the recovery, counting, invalidation, and sealing of tickets before the draw and before transporting the tickets back to the headquarters for recounting. The composition of the regional lottery supervisory boards shall be decided by the People's Committee of the province or city, ensuring that the ticket recovery process is accurate, honest, and free from fraud. The regional lottery supervisory boards are responsible for complying with state regulations during the execution of their assigned tasks.

This Circular takes effect fifteen days after its publication in the Official Gazette and replaces Circular No. 118/2002/TT-BTC dated December 27, 2002, issued by the Ministry of Finance guiding the organization and operation of the Witness Supervisory Board for Lottery Savings.

During the implementation process, if there are difficulties or obstacles, units shall promptly report them to the Ministry of Finance for consideration and resolution./.