Losses from MobiFone-AVG deal minimized

Law enforcement agencies have so far collected a whopping VND8.845 trillion (US$382 million) to recover losses from a murky share acquisition between State-run MobiFone Telecommunications Corporation and a private pay TV provider.

Losses from MobiFone-AVG deal minimized

Pham Nhat Vu, chairman of Audio Visual Global JSC, speaks at an event 

The now-aborted deal saw MobiFone Telecommunications Corporation, a business under the Ministry of Information and Communications (MIC), overpay for a 95% stake in the loss-making Audio Visual Global JSC (AVG) in 2015, reported the Vietnam News Agency.

The Supreme People’s Court stated in the case’s indictment that between December 28, 2015, and January 15, 2016, MobiFone had paid more than VND8.445 trillion, equivalent to 95% of the deal’s value, to AVG shareholders.

To pool the large sum of money within the 19 day period, MobiFone was found to have withdrawn money from term deposits ahead of their maturity dates from local banks, leading to VND115 billion in lost interest. Therefore, the total damage to the State amounted to over VND8.56 trillion.

When the Government Inspectorate uncovered irregularities associated with the deal, MobiFone and AVG decided to terminate the transfer of 344.66 million shares and refund each other between April and August 2018.

As a result, MobiFone recovered more than VND8.774 trillion from AVG shareholders, where VND8.445 trillion covered the value of the deal and VND115 billion covered the lost interest, reducing the damages borne by the State.

Former AVG chairman Pham Nhat Vu, 46, who was detained for bribery in connection with the deal in April 2019, confessed to investigators that he had used MobiFone’s payments to AVG to finance the firm’s business activities and pay its debts.

Regarding MobiFone’s repayment obligation, Vu arranged for all money to come from his personal funds and loans from his firm and other individuals. He and his shareholders agreed to make the payment without any disputes.

According to the indictment, Vu had offered bribes worth a total of VND137 billion to the then-leaders of the MIC and MobiFone to speed up the sale of his company’s stake.

Losses from MobiFone-AVG deal minimized

Then Minister of Information and Communications Nguyen Bac Son (R) awards a prime ministerial decision appointing Truong Minh Tuan to serve as his deputy minister in February 2014 – PHOTO: MIC

Former Minister of Information and Communications Truong Minh Tuan, 59, and his 66-year-old predecessor, Nguyen Bac Son, admitted to accepting bribes worth US$200,000 and US$3 million, respectively.

 

Meanwhile, MobiFone’s former board chairman Le Nam Tra and former general director Cao Duy Hai, both 58, received US$2.5 million and US$500,000, respectively, from the-then AVG leader.

The four individuals were recently indicted for public capital mismanagement and passive bribe taking.

Seeking leniency, Tuan, Tra and Hai had their families return all of the bribes, while Son was only able to return a trivial sum of roughly VND592 million (US$25,500) from his bank account as his family was uncooperative in handing over the remainder.

Son admitted that he had given US$3 million in cash to his daughter, Nguyen Thi Thu Huyen, in 10 disbursements, ranging from US$300,000 to US$400,000 each, but she vehemently denied the allegation.

The results of the first-instance trial will serve as the grounds for looking into this claim, according to the Supreme People’s Court.

Authorities have frozen the former ministers’ assets to recover the losses in the case.

The country’s top prosecution agency noted that Vu of AVG will not have to bear all liability for MobiFone’s losses in the deal as he has proactively returned VND8.5 trillion paid by MobiFone to acquire AVG and has cooperated with investigators. SGT

AVG ex-chairman Pham Nhat Vu entitled to leniency

AVG ex-chairman Pham Nhat Vu entitled to leniency

Pham Nhat Vu, former chairman of private pay TV firm Audio Visual Global JSC (AVG), will not have to bear all liability for MobiFone’s losses in the MobiFone-AVG deal.

MobiFone-AVG deal: two former ministers prosecuted

MobiFone-AVG deal: two former ministers prosecuted

The Supreme People’s Procuracy on October 19 notified the prosecution of two former ministers of information and communications (MIC) – Nguyen Bac Son and Truong Minh Tuan, along with 12 other defendants.

AVG deal: Former minister Nguyen Bac Son takes $3 million of bribery

AVG deal: Former minister Nguyen Bac Son takes $3 million of bribery

Two former communication ministers have been accused of taking millions of dollars in bribes to make sure the deal to sell AVG to the State-owned telecom corporation MobiFone went ahead smoothly.

 
 

Other News

.
Runway upgrade at TSN airport completed
Runway upgrade at TSN airport completed
BUSINESSicon  10/01/2021 

The runway renovation project commenced on June 29 last year, with a total investment of some VND2 trillion.

For the sake of sustainable fish export
For the sake of sustainable fish export
BUSINESSicon  10/01/2021 

The price of tra (pangasius) fish has experienced one fluctuation after another. This year is forecast to be a recovery time for the fish.

Minister urges quick building of project on natural forest protection
Minister urges quick building of project on natural forest protection
BUSINESSicon  10/01/2021 

The forestry sector should take swift action to build a project on zoning off and protecting natural forests in the time to come, said Minister of Agriculture and Rural Development Nguyen Xuan Cuong.

Resilience helps Vietnam overcome year of COVID-19
Resilience helps Vietnam overcome year of COVID-19
FEATUREicon  09/01/2021 

Though COVID-19 has sent the global economy into one of its worst recessions ever, Vietnam posted GDP growth of 2.91 percent in 2020 thanks to its solid control of outbreaks and timely support to both enterprises and local people.

Construction of T&T Group’s modern trade center commences in Dak Nong Province
Construction of T&T Group’s modern trade center commences in Dak Nong Province
BUSINESSicon  09/01/2021 

The construction of the VND645 billion Dak Mil Trade Center was kicked off in the Central Highlands province of Dak Nong on January 6 by the Vegetable Import and Export Joint Stock Company (a member of T&T Group).

VIETNAM BUSINESS NEWS JANUARY 10
VIETNAM BUSINESS NEWS JANUARY 10
BUSINESSicon  10/01/2021 

VNR500, top 10 prestigious companies honoured

Vietnamese, US officials talk economic, trade issues
Vietnamese, US officials talk economic, trade issues
BUSINESSicon  08/01/2021 

Minister of Industry and Trade Tran Tuan Anh has held phone talks with US Trade Representative (USTR) Robert Lighthizer to discuss bilateral economic and trade issues.

Opportunities opened for food processing industry
Opportunities opened for food processing industry
BUSINESSicon  08/01/2021 

According to Vietnamese trade counselors, in 2021, Vietnamese goods, in general, have a great opportunity to export to Europe, Northern Europe, the US, the Eurasian Economic Union, Japan, South Korea, and China.

Insurance groups signal intent to raise funds for stock boost
Insurance groups signal intent to raise funds for stock boost
BUSINESSicon  08/01/2021 

Insurance companies in Vietnam are lifting the curtains on their public fundraising plans, seen as a step towards luring more cash in the promising insurance and reinsurance market.

Vietnam to be among top growth performers again in 2021: HSBC
Vietnam to be among top growth performers again in 2021: HSBC
BUSINESSicon  09/01/2021 

Vietnam posted the fastest growth in Asia in 2020 and will once again be among the most outstanding performers in the region this year, according to the Hong Kong Shanghai Banking Corporation (HSBC).

FDI enterprises increase but more losses reported
FDI enterprises increase but more losses reported
BUSINESSicon  08/01/2021 

The number of foreign direct investment (FDI) enterprises continues to increase in Vietnam, but more are reporting losses. 

VIETNAM BUSINESS NEWS JANUARY 9
VIETNAM BUSINESS NEWS JANUARY 9
BUSINESSicon  09/01/2021 

Credit growth forecast to reach 13-14 percent this year: SSI

Vietnam imports rice from India for first time
Vietnam imports rice from India for first time
BUSINESSicon  08/01/2021 

Vietnam’s rice output is more than enough to satisfy domestic demand, but country is importing rice from India to use mostly for animal feed.

Property prices expected to rise 10 percent in 2021
Property prices expected to rise 10 percent in 2021
BUSINESSicon  08/01/2021 

Real estate prices in 2021 are expected to increase by 10 percent over the previous year, said Nguyen Van Dinh, deputy general secretary of the Vietnam Real Estate Association (VNREA).

Spikes in rent scaring away industrial zone tenants
Spikes in rent scaring away industrial zone tenants
BUSINESSicon  08/01/2021 

The supply of industrial land and real estate has so far not kept up with the ever-rising demand from manufacturers and investors, leading to price hikes like never before.

New entity to invigorate Vietnam’s stock markets
New entity to invigorate Vietnam’s stock markets
BUSINESSicon  07/01/2021 

With general optimism well-founded for Vietnam’s stock market building in the past year, there is now significant anticipation for 2021 with the arrival of a new entity to run the country’s exchanges.

High expectations laid out through fresh policy move
High expectations laid out through fresh policy move
BUSINESSicon  08/01/2021 

Three amended key laws on securities, enterprises, and investment have now come into force.

Vietnam’s manufacturing output returns to growth in final month of 2020
Vietnam’s manufacturing output returns to growth in final month of 2020
BUSINESSicon  08/01/2021 

The Vietnamese manufacturing sector ended the year 2020 in growth territory as business conditions improved following disruptions caused by a succession of storms in November, with output, new orders and employment all increasing in December,

Stage set for scale-up of nation’s rice
Stage set for scale-up of nation’s rice
FEATUREicon  07/01/2021 

Vietnam’s rice processing and trading have overcome the difficulties caused by the ongoing pandemic to acquire the export turnover of over $3 billion in 2020, a record in the past nine years, with exporters remaining bullish over future prospects.

4% inflation target set for 2021 within reach: experts
4% inflation target set for 2021 within reach: experts
BUSINESSicon  07/01/2021 

Vietnam is likely to meet its target of reining in inflation at a rate of below 4% in 2021, although experts warn that unfavourable factors could impact market fluctuations.

 
 
 
Leave your comment on an article

OR QUICK LOGIN