Related to MobiFone's AVG purchase case, the Supreme People's Procuracy of Vietnam has approved the implementation of legal proceedings agains five officials of the State-owned telecommunication giant MobiFone.
Accordingly, the Investigation Police Department under the Ministry of Public Security has begun legal proceedings against these people, including three General Directors of MobiFone - Nguyen Dang Nguyen, Nguyen Bao Long, Nguyen Manh Hung - and two members of the MobiFone Members' Council - Phan Thi Hoa Mai and Ho Tuan.
These people face the charge of “breaching regulations on the management and use of public investment capital, causing serious consequences” under Article 220 of 2015 Penal Code, the ministry announced on August 26.
Earlier, the agency started legal proceedings against law violations and nine others involved in the case, for the charge of “breaching regulations on the management and use of public investment capital, causing serious consequences”.
Multiple irregularities had been found in the acquisition process initiated by MobiFone, a business under the Ministry of Information and Communications and the country’s third largest mobile carrier.
MobiFone had spent roughly VND8.89 trillion (some US$390 million) in buying 344.66 million AVG shares in late 2015.
Following a probe into the deal, the Government Inspectorate concluded that AVG was incurring losses after it was acquired by MobiFone. The irregularities and the irresponsibility of MobiFone have cost the State some VND7 trillion, including AVG’s liabilities of VND1.13 trillion.
MobiFone, VNPT, and the other 17 companies have been exposed to the gunfire of the Commission for Management of State Capital at Enterprises’ (CMSC) financial supervision.