Which ministries violated the MobiFone purchase of AVG case?

The conclusion of the Government Inspectorate was announced on the afternoon of March 14, clearly stating the violations of ministries and branches related to the project of MobiFone Telecommunications Corporation buying 95% of shares of Global Audiovisual Joint Stock Company (AVG).

The Government Inspectorate stated that this is a very serious economic incident, the project has a total investment of 8,900 billion VND, however, MobiFone's violations, violations of regulations, and lack of responsibility lead to the risk of serious damage to the State's capital at this enterprise of about 7,006 billion VND.

Ministry of Information and Communications, tAlthough the project has not been approved by the Prime Minister, the Ministry has issued a decision approving MobiFone's television service investment project, violating the Investment Law.

The inspection conclusion mentioned 4 frequency channels that the Ministry of Information and Communications granted to AVG to pilot the "investment project to build digital transmission and broadcasting infrastructure and develop paid digital entertainment television activities" in association with Binh Duong Provincial Radio and Television Station.

According to the provisions of the Law on Radio Frequencies, these 4 frequency channels are national resources with high commercial value; when assigned to units for use and exploitation, they must be auctioned or selected for the right to use radio frequencies to collect money for the State budget, but the Ministry of Information and Communications has not revoked them to comply with the regulations.and proposed that the Prime Minister "allow MobiFone to continue using the 4 frequency channels granted to AVG to serve its television and telecommunications service business activities".

Although the above proposal of the Ministry of Information and Communications has not been approved by the Prime Minister, the decision to approve the investment project, the Ministry has allowed Mobifone to continue using these 4 frequency channels, which is a violation of the provisions of the Law on Radio Frequencies and other relevant regulations.

The inspection conclusion stated, do There was no auction and no valuation, so the damage could not be determined. However, according to AMAX's valuation, the value of the 4 frequency channels is 112.32 million USD, equivalent to more than 2,429 billion VND.

In addition, in this project, the purchase price of 95% of AVG shares and investment efficiency are two important factors, in the project appraisal report and documents sent to the Prime Minister and relevant ministries.Although the Ministry of Information and Communications is still concerned and has repeatedly requested assistance, although it has not been clarified, the Ministry still submitted the project investment policy to the Prime Minister for approval and has decided to approve the investment project.

Although the Ministry of Information and Communications reported to the Prime Minister and relevant agencies about the use of 30% equity capital and 70% credit loan capital of the total investment for the project, t...The decision approving the investment project did not specify the source of investment capital;In fact, MobiFone uses 100% of its equity capital to invest in the project.

"The Ministry of Information and Communications, with its functions and duties as the agency representing the owner and state management of information and communications, was irresponsible in project appraisal; the decision to approve the investment project did not ensure a legal basis, violated the provisions of the law, causing serious damage to state capital," the inspection conclusion stated.

The Government Inspectorate said that MobiFone's acceptance of the transfer of 95% of AVG shares was not a state secret, but the Ministry of Information and Communications sent a document requesting the Ministry of Public Security for comments and listed the transaction as confidential, which was not in accordance with regulations.

The Ministry of Information and Communications requested the Ministry of Public Security to give its opinion on many issues that are not under the state management of the Ministry of Public Security, even under the field of specialized management ministries (on investment policies, investment procedures and processes; on the issue of share purchase price, investment efficiency of the project...) to seek the opinion of the Ministry of Public Security, which is not in accordance with the provisions of law. Therefore, the Ministry of Information and Communications cannot base on the opinion of the Ministry of Public Security to claim that it has complied with the instructions of competent state agencies.

When the Government Inspectorate sent a document requesting the Ministry of Information and Communications to consider and decide according to its authority prescribed by law on declassification or continued confidentiality, the Ministry of Information and Communications did not do so and at the same time requested the Government Inspectorate to report and ask for the Prime Minister's opinion, which is not in accordance with regulations.

Ministry of Planning and Investment, the inspection conclusion stated,This setDocument No. 721 dated November 24, 2015 sent to the Prime Minister, requesting approval of the project investment policy is not in accordance with the provisions of the Investment Law.

Notably, after MobiFone signed a contract to transfer 95% of AVG shares and paid 95% of the contract value, on January 22, 2016, the Ministry of Planning and Investment issued document No. 27, which clearly stated the direct impact with many risks from purchasing 95% of AVG shares while MobiFone was in the process of equitization and "requested to stop implementing the project".

The opinions of the Ministry of Planning and Investment in the above two documents are inconsistent, the responsibility belongs to the relevant officials and civil servants of this Ministry.

Ministry of Financeresponsible for state management of the financial sector, directly related to the implementation of MobiFone's equitization, failed to promptly provide full and comprehensive analysis, assessment, and recommendations on the direct impacts of the enterprise investing a huge amount of capital in the project (more than VND 8,889 billion, accounting for nearly 60% of Mobifone's charter capital), negatively affecting the equitization process.

On the other hand, the Ministry of Finance has requested the Ministry of Information and Communications to direct MobiFone to continue reviewing the investment project to ensure the efficiency of production and business activities, but still agrees with the proposal of the Ministry of Information and Communications on the project investment policy, ... requesting the Government Office to synthesize and report to the Prime Minister, while Mobifone is conducting equitization; the responsibility belongs to the relevant officials and civil servants of the Ministry of Finance.

Government OfficeThe project documents have not been completed yet, but documents have been sent to the Ministry of Planning and Investment and the Ministry of Finance for comments; compiled, analyzed, gave opinions for examination, and submitted to the Prime Minister for approval in principle for MobiFone to buy shares of AVG Company to develop television services...

In document No. 209 dated October 28, 2015, the Ministry of Information and Communications proposed that the Prime Minister "consider approving the investment policy for MobiFone's television service investment project", but the Government Office submitted to the Prime Minister and issued document No. 2678 dated December 14, 2015 with the content: "Approve the policy for MobiFone to purchase shares of AVG to develop television services and assign the Ministry of Information and Communications to implement the above-mentioned share purchase project in accordance with the provisions of law" which is not in accordance with the content that the Ministry of Information and Communications proposed.

In fact, the project has not been appraised, submitted and the Prime Minister has not decided to approve the project investment policy according to the provisions of the Investment Law; the responsibility belongs to relevant officials and civil servants of the Government Office.

Ministry of Public SecurityThere is document No. 4352 dated December 8, 2014, requesting the Ministry of Information and Communications to instruct AVG Company not to transfer shares to foreign countries, but to sell shares only to domestic partners, state-owned enterprises is best; on the other hand, MobiFone's acceptance of the transfer of 95% of AVG shares is not in the field of State secrets, but based on the request of the Ministry of Information and Communications, the Ministry of Public Security has a document agreeing with the Ministry of Information and Communications on putting this transaction document in the list of confidential documents of the Ministry of Information and Communications with the level of "CONFIDENTIAL", implementing confidentiality of the purchase and sale, without limiting the time of information confidentiality, is not appropriate.

The Ministry of Public Security does not have the function and task of state management of investment and finance, but has sent document No. 2889 to the Ministry of Information and Communications, which states: The Ministry of Public Security assesses the process and procedures for implementing the project directed by the Ministry of Information and Communications as being cautious, strict, and in compliance with legal regulations; there are conditions and grounds to resolve security issues as stated by the Ministry of Public Security; MobiFone's plan to invest more than VND 8,898 billion to buy 95% of AVG Company's shares as stated in the official dispatch of the Ministry of Information and Communications is lower than the valuation of valuation units...

According to the inspection conclusion, the above opinions of the Ministry of Public Security are not consistent with the functions, tasks and authorities as prescribed.

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 the records and inspection documents of the above project for review, investigation, and handling of the right people, right violations, and in accordance with the law.

The Government Inspectorate also forwarded the conclusion to the Central Inspection Committee for consideration and handling according to its authority for officials under the management of the Politburo and the Central Secretariat related to the shortcomings and violations stated in the inspection conclusion.