Le Nam Tra, former Chairman of Mobifone’s Member Council (Source: Vnexpress.net)Hanoi (VNA) – The Ministry of Public Security’s Investigation PoliceAgency (C46) has launched criminal proceedings against law violations relatingto the State-owned telecommunication giant Mobifone’s purchase of 95 percent ofshares of Audio Visual Global JSC (AVG).
In a statement released on late July 10, the agency announced that ithad issued Decision 26/C46-P13 initiating a criminal case on suspected violationof regulations on the management and use of public capital that lead to seriousconsequences in Mobifone, which is under the management of the Ministry ofInformation and Communications (MIC), and related agencies.
C46 also began legal proceeding against and ordered the arrest of Le NamTra, former Chairman of Mobifone’s Member Council, who is currently an officialof the MIC’s Office - and Pham Dinh Trong, Director of the MIC’s Department of EnterpriseManagement.
Both Tra and Trong are charged with breaching regulations on themanagement and use of public capital that lead to serious consequences underClause 3, Article 220 of the 2015 Criminal Code.
They face up to 20 years in prison.
The same day, the Supreme People’s Procuracy approved C46’s decisionsand orders.
Earlier on June 27-28, the Party Central Committee’s InspectionCommission held a meeting on applying disciplinary measures against Tra andTrong by dispelling them from the Party.
On July 10, the Party Central Committee’s Secretariat decided to give aformal warning to the Party Committee of the MIC for the 2011-2016 tenure.
According to theGovernment Inspectorate (GI), Mobifone was irresponsible and broke regulationsin the acquisition, especially in assessing AVG’s financial situation, leadingto State budget losses of 7 trillion VND, and affecting Mobifone’s finance,resulting in difficulties equitising the company.
AVG faceddifficulties from its establishment to the time of business valuation in March2015, with accumulated losses of more than 1.6 trillion VND, accounting for 45percent of its charter capital.
However, Mobifonewas dishonest in reporting AVG’s financial situation to the MIC during theacquisition.
According to the GI,the assessment violated regulations for investment and managing and using Statecapital.
The GI stated thatthe responsibility for the wrongdoings went to the Board of Members, Board ofDirectors, the chief accountant and other departments of Mobifone.
The GI also saidthat the MIC, as the representative of the State ownership and the State agencyin charge of management of information and communication, showed a lack ofresponsibility in assessing the acquisition. Its approval of the acquisitionhad violated legal rules, causing serious losses of State capital and thus mustbe annulled, the GI said.
In addition, theacquisition was not eligible for being classified as a State secret, but theministry asked the Ministry of Public Security to include it in the list ofclassified information, which violated laws on issuing regulations on thepublishing of information of State-owned one-member limited liabilitycompanies.
MIC officials incharge of the case must bear responsibility for the violations, the GI said.
A day before theGI’s announcement, Mobifone and AVG decided to cancel the transfer of 344.66million shares and refund each other the amount received under the agreement.
AVG shareholderswill refund the entire amount paid by Mobifone, while Mobifone will return toAVG the number of shares and assets transferred. The two sides will also try tonot let the other party suffer more damages.
In addition to the amountpaid to AVG, Mobifone said it had to pay some related expenses, such asconsultants’ fees. AVG has agreed to share this expense with Mobifone.-VNA
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