How is Mr. Tat Thanh Cang related to Tan Thuan's violations - IPC?

Source of informationVnExpresssaid,Implementing the direction of Chairman of Ho Chi Minh City People's Committee Nguyen Thanh Phong, the Department of Home Affairs has organized a review of the management responsibility of the leaders of Tan Thuan Industrial Development Company Limited (IPC) regarding the violations and shortcomings previously concluded by the authorities.

Mr. Te Tri Dung (37 years old, manager, directly signed many economic contracts that violated the law) and other leaders involved in the violations accepted disciplinary action.reprimand.

"The Department does not accept IPC leaders unanimously accepting the lightest form of discipline. It requires them to seriously review the level of violations and propose appropriate and corresponding forms of discipline," he said.

IPC is under the HCM City People's Committee, established 25 years ago and operates in many fields. General Director Te Tri Dung has been suspended from his position to serve the investigation. He is a member of the HCM City People's Council and was absent from the year-end meeting in early December.

The previous conclusion of the City Inspectorate pointed out violations at IPC, including the company's failure to comply withdirection of Mr. Tat Thanh Cang - Standing Deputy Secretary of Ho Chi Minh City Party Committee.

According to the restructuring plan, IPC with a 44% ownership ratio does not need to further reduce its ownership ratio at Sadeco Company, especially in the context that this company is making very high profits.

However, the IPC documents dated May 31, 2017 and June 7, 2017 both state: "...The City Party Committee Office issued Notice No. 495 dated May 18, 2017 (attached document) conveying the direction of the Standing Deputy Secretary of the City Party Committee approving the plan to issue shares to strategic shareholders to increase charter capital at Sadeco....". From there, IPC proposed that the City's Enterprise Finance Department approve and submit to the City People's Committee for approval the plan to increase charter capital and reduce IPC's ownership ratio at Sadeco to 28.8%.

Next, in the document signed on June 16, 2017, IPC reported to the City People's Committee, supplementing the role and impact of Nam Saigon Development Joint Stock Company on the development of the South Saigon Area, stating:"...The Standing Committee of the City Party Committee also approved the plan to issue shares to strategic shareholders to increase charter capital in Notice No. 495 dated May 18, 2017...".

Assessing this, the City Inspector said, IPC said"The Standing Committee of the City Party Committee has approved the policy..."is incorrect. Because document No. 495 only conveys the personal opinion of Standing Deputy Secretary of the City Party Committee Tat Thanh Cang.

If IPC issues shares to existing shareholders (instead of strategic shareholders), it will be a more optimal solution. In case IPC does not want to continue investing in Sadeco, it should transfer the capital contribution rights to other organizations and individuals through auction so as not to cause damage to IPC in particular and the state in general...

"The above incidents show that the reduction of IPC's capital contribution ratio at Sadeco has signs of violating the law and needs to be clarified," the City Inspectorate's conclusion stated.

Along with the above violations, IPC was also concluded to have sold 9 million shares to Nguyen Kim at a low price.In June 2017, before submitting the capital increase proposal to the City People's Committee, Sadeco issued 9 million shares and sold them to Nguyen Kim at 40,000 VND per share. This action by Sadeco is said to have caused a loss of at least 153 billion VND to the State budget - based on the fact that Exim Company sold shares to Nguyen Kim in September 2016 (57,000 VND).

"In early 2017, real estate in the South Saigon area was affected by the land fever, prices increased a lot so the actual damage was very large," the inspection agency said. In addition, the sale of these shares also helped Nguyen Kim take over Sadeco when it took 54% of the shares, IPC only had 28.8%.

Along with the violations at Sadeco, Chairman of the People's Committee Nguyen Thanh Phong assignedCity police investigate signs of violations by Tan Thuan IPCin issuing shares to strategic shareholders at Hiep Phuoc Industrial Park Joint Stock Company (IPC's subsidiary) causing damage to the budget.

In addition, the City Inspector's conclusion also pointed out a series of signs of violations by IPC Company in the implementation of the Thanh My Loi Residential Area Project and other projects invested by IPC...

Or IPC's capital contribution to the An Phu Tay Resettlement Area project (invested by Nam Sai Gon Development Joint Stock Company) and the transfer of IPC's divided products; the investment process in the construction of a number of projects in Nha Be district; the capital contribution to form a joint venture and the production and business activities at Saigon Central Container Port Company.

The management of the headquarters building is also said to have many violations.Specifically, IPC only uses a part of the building, the rest is rented out to 81 units as offices (total rental revenue in the last 7 years is more than 295 billion VND); the business is profitable but borrows from the bank to pay the profit to the budget, resulting in interest of more than 8 billion VND.

In 2016-2017, IPC organized for company leaders to go abroad without permission from the City People's Committee; some cases of going abroad beyond the time limit were sent... with a total cost of more than 1.3 billion VND.

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