After the abuse of wage funds was recently uncovered at three companies in Ho Chi Minh City, the actual salary of the directors of these companies was exposed at surprisingly high rates: up to VND2.6 billion (US$123,600) per year, 41 times higher than that of a seasonal worker. On August 26, Le Manh Ha, deputy chairman of the HCMC People’s Committee, released a conclusion about the investigation into wrongdoings in using wage funds at three companies: HCMC Urban Drainage Company Limited, Saigon Traffic Works One-Member Co Ltd, and HCMC Public Lighting Company Limited. These companies belong to the public welfare section of the city, but their board of directors  have breached the labor regulations and abused their wage fund to pay two high salaries for themselves and others in 2012. According to the investigations, the total amount of money that has been spent wrongly and has to be recovered from the three companies amounts to VND6.265 billion ($297,800). Specially, VND3.2 billion must be recovered back from seven managers at the HCMC Urban Drainage Company Limited; VND554 million must be recovered from seven managers at the Sai Gon Traffic Works One-Member Co Ltd; and the rest must be given back by a number of officials at the other company.  At the HCMC Urban Drainage Company Limited, the salary of the director was VND2.6 billion, or over VND200 million per month, 41 times of the income of a low-level worker, and that of chief accountant was VND1.67 billion per year. At the HCMC Public Lighting Company Limited, the salary of the director was lower, VND2.2 billion, and that of the chief account was 1.7 billion. At the other company, the director got VND856 million per year and the chief account received VND716 million. Ha, the deputy chairman, requested that all three companies recover the money that has been spent wrongly and report their actions to the HCMC People’s Committee before September 15. Anyone who committed violations related to the use of wage funds and other related wrongdoings must be disciplined appropriately, Ha said. Breaching Labor Code, affecting 732 laborers The HCMC Urban Drainage Company Limited and Saigon Traffic Works One-Member Co Ltd have violated the Labor Code, according to the investigation results, Dan Tri news website reported. Specifically, they signed contracts with a term of under three months with people who were qualified as regular workers, and signed contracts with definite terms with people who were qualified for indefinite contracts. Such wrongdoings have affected the rights and interests of 732 workers.   All the workers affected by violations related to the wage funds at the two companies must be reimbursed satisfactorily, for example damage in social insurance and other benefits, Ha said.  These companies must build and apply a wage system that ensures equality between direct and indirect workers. No discrimination between workers is allowed, Ha said.