Former MobiFone chairman arrested
Mr. Le Nam Tra was prosecuted and temporarily detained on charges of violating regulations on management and use of public investment capital, causing serious consequences.
July 10, the Investigation Police Agency (Ministry of Public Security)prosecute the case“Violating regulations on management and use of public investment capital causing serious consequences” (Article 220 of the 2015 Penal Code) occurred at MobiFone Telecommunications Corporation and related units.
The investigation agency also decided to prosecute and detain Mr. Le Nam Tra (former Chairman of the Board of Directors, former General Director of MobiFone) and Mr. Pham Dinh Trong (Director of the Department of Enterprise Management, Ministry of Information and Communications) for the same crime.Mr. Le Nam Tra is currently an officer of the Office of the Ministry of Information and Communications.
The prosecution decisions were issued more than a month after the Ministry of Public Security received the dossier from the Government Inspectorate.
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Mr. Le Nam Tra.Photo: Gia Chinh |
Previously, at the end of June, the Central Inspection Committee announced the results of its 27th session. Considering the content, nature, level, and consequences of the violations; based on the Party's regulations on disciplinary action against violating Party organizations and Party members, the Committee decided to expel Mr. Tra and Mr. Trong from the Party.
In mid-March, the Government Inspectorate announced the conclusion of a comprehensive inspection of the MobiFone project to buy AVG shares, in which it identified violations, violations of regulations, and lack of responsibility by MobiFone related to this project, "the existing risk of serious damage to State capital at MobiFone of about 7,006 billion VND"...
Considering this a very serious economic case, the Government Inspectorate recommended that the Prime Minister assign the competent investigation agency of the Ministry of Public Security to receive all project inspection records and documents for review, investigation, and handling of the right person, right violation, and right law.
Violations of Mr. Le Nam Tra in the inspection conclusion
The Inspectorate's conclusion clearly stated that Mobifone had committed many shortcomings and violations in: proposing investments, assessing the financial and business status of AVG; selecting consulting units to appraise AVG's enterprise value, consulting on business mergers and acquisitions; accepting and using AVG's valuation results as a basis for negotiating the purchase price of shares...
When reporting the investment proposal to receive AVG shares transfer and prepare the Investment Project to submit to the Ministry of Information and Communications for approval, Mobifone reported dishonestly, incompletely, and incorrectly assessed the very bad financial situation of AVG, even positively assessing the financial and business situation of AVG as follows: "From 2012 to 2014, AVG's revenue increased, gross profit is gradually increasing (although it is still at a loss as planned), all indicators show growth..." is a violation of regulations on prohibited acts in the field of investment, management, and use of state capital in enterprises: "Providing information, reporting dishonestly, inaccurately, incompletely, and untimely as prescribed by law". The responsibility belongs to the Board of Directors, Chairman and members of the Board of Directors of Mobifone, the conclusion of the Government Inspectorate clearly stated.
Mr. Pham Dinh Trong's violations in the inspection conclusion
The investigation conclusion clearly stated that Mr. Pham Dinh Trong, Director of the Department of Enterprise Management, Ministry of Information and Communications, in his role as head of the appraisal team, did not fully synthesize the opposing opinions of some members, such as: the necessity of investing in AVG, the choice of investment options to buy shares, the determination of AVG share purchase ratio, but assessed that Mobifone had fully and comprehensively researched the Project, which was lacking in objectivity and subjective.
While the share purchase price and investment efficiency have not been clarified; the Prime Minister has not yet decided to approve the project investment policy according to the provisions of the Investment Law, but Mr. Trong submitted to the leaders of the Ministry of Information and Communications to decide to approve the Investment Project; agreed and advised to leave 2 amounts that AVG had invested outside the television field, which is a violation of Decision No. 929 of the Prime Minister; inconsistent with the direction of the Ministry of Information and Communications, showing intentional wrongdoing.
"The responsibility for the above violations belongs to the Appraisal Team, in which the main responsibility belongs to the Team Leader and Head of the Department of Enterprise Management," the Government Inspectorate stated.
The MobiFone project to buy AVG shares was announced by this corporation at the end of 2016. However, in early March, the two parties agreed to cancel the transfer contract and return what they had received from the partner. Afterwards, the conclusion of the Government Inspectorate announced in mid-March pointed out very serious economic violations of this project, from the investment proposal, establishment, and appraisal of the investment project; the submission and approval of the investment project to the project implementation and investment efficiency. In early May, MobiFone reported to the Ministry of Information and Communications that the AVG shareholder group had paid more than VND8,500 billion, including the entire value of 95% of shares and VND60 billion for related expenses. However, MobiFone requested the Ministry to provide guidance on the next steps as well as request the Government Inspectorate to determine the amount of money transferred by shareholders to comply with regulations. |
