AVG deal: Former minister Nguyen Bac Son received a bribe of 3 million USD

On September 2, the Ministry of Public Security's Investigation Agency completed and delivered the investigation conclusion on the Mobifone case of buying 95% of AVG shares.

Defendant Nguyen Bac Son (left) and defendant Truong Minh Tuan. Photo: Ministry of Public Security

The investigation agency has proposed to prosecute Mr. Nguyen Bac Son - former Minister of Information and Communications and Mr. Truong Minh Tuan - former Deputy Head of the Propaganda Department, former Minister of Information and Communications for violations related to the AVG purchase deal. Previously, Mr. Nguyen Bac Son and Mr. Truong Minh Tuan were both prosecuted for "Violating regulations on management and use of public investment capital causing serious consequences" and the crime of accepting bribes.

In addition, the Investigation Agency also proposed to prosecute Mr. Pham Nhat Vu, former chairman of AVG, along with a series of leaders and former leaders of Mobifone and directors of many other companies.

Receive 3 million USD at private home

According to the investigation conclusion, Mr. Son stated that during the project implementation, Mr. Pham Nhat Vu, former Chairman of AVG's Board of Directors, contacted him many times, called and texted him to urge him to sell his shares soon.

Mr. Son knew that his term as minister would end in April 2016, so if he wanted to make a mark for Mobifone, he had to buy AVG's television division in 2015. On the other hand, Mr. Son thought that if the purchase was successful, AVG shareholders would thank him materially.

After completing the project, Mobifone paid 95% of the contract value to AVG, Mr. Pham Nhat Vu went to Mr. Son's private house at 36C1 Ly Nam De, Cua Dong ward, Hoan Kiem district, Hanoi and gave Mr. Son 3 million USD.

Mr. Son realized that Mr. Vu gave the money because the former minister had directed the completion of the AVG share purchase project. After receiving the money, Mr. Son gave his daughter, Nguyen Thi Thu H., about 10 times, each time from 300,000 to 400,000 USD, but there was no document to prove it.

Mr. Pham Nhat Vu at the investigation agency. Photo: Ministry of Public Security

In addition, Mr. Son also admitted that on holidays and Tet, he received money from Mr. Cao Duy Hai, former General Director of Mobifone, in the amount of 200 million VND on April 30, 2015, and 200,000 USD from Mr. Le Nam Tra, former Chairman of Mobifone's Board of Members, on the occasion of Lunar New Year 2016.

During the investigation, Mr. Son realized that the money he received from Mr. Vu was an illegal benefit, so he wrote many applications to remedy the consequences. Mr. Son requested to deposit more than 500 million VND in his personal account to remedy the consequences.

Former Minister Truong Minh Tuan admitted that during the project implementation process, Mr. Pham Nhat Vu called him many times to urge him to create favorable conditions for the project to be implemented quickly. After completing the project, Mr. Vu went to Mr. Tuan's private office to give him 200,000 USD.

Mr. Tuan was aware that Mr. Vu gave him money because he participated in the project and signed Decision 236. Mr. Tuan used this money for personal purposes. Mr. Tuan asked to pay 2.12 billion VND to remedy the consequences.

Mobifone leaders also received millions of USD

Defendant Le Nam Tra, former Chairman of Mobifone Board of Directors, stated that during the project implementation, Mr. Pham Nhat Vu called many times to urge him to complete the project soon. After completing the project, before and after the Lunar New Year 2016, Mr. Tra received 2.5 million USD from Mr. Pham Nhat Vu. Mr. Tra used this money for personal use.

As Chairman of Mobifone's Board of Directors, Mr. Tra realized that receiving money from Mr. Vu was wrong and violated the law, so he requested to recover the entire amount of 2.5 million USD of illegal profits.

In addition, Mr. Tra also stated that on the occasion of Lunar New Year 2016, he gave Mr. Nguyen Bac Son the amount of 700,000 USD, of which 500,000 USD was received from Mr. Vu. However, Mr. Tra determined that this was a personal civil matter between him and Mr. Son, so he did not request a review in the case.

Investigators searched Mr. Nguyen Bac Son's house. Photo: TTO

Defendant Cao Duy Hai, former member of the Board of Members and General Director of Mobifone, stated that after completing the project, Mobifone paid 95% of the contract value to AVG. In April 2016, Mr. Pham Nhat Vu went to Mr. Hai's office at the Mobifone building and gave him 500,000 USD.

Mr. Hai realized that receiving money from Mr. Vu was wrong and resulted in illegal benefits, and he submitted a request to return the entire amount to receive leniency from the law.

Risk of state capital loss of 7,000 billion VND

According to KLĐT, leaders of MobiFone's board of members at the time of purchasing AVG (December 2015) committed many serious violations.

In addition to choosing a valuation consultancy unit with many violations, MobiFone also violated in investment proposals and assessment of AVG's financial and business status...

Accordingly, not only did it not fully assess AVG's "very bad" financial situation, but it instead positively assessed AVG's business performance when reporting to the Ministry of Information and Communications to approve the project.

MobiFone even did not rule out AVG's two non-core investments, a move considered irresponsible and intentionally violating regulations.

The above violations have caused a risk of loss of state capital at MobiFone of more than 7,000 billion VND. This has caused a decline in business efficiency from 2016 and the following years, in which the accumulated loss up to 2017 was more than 1,900 billion VND, and at the same time negatively affected the equitization of MobiFone.

According to the case file, during the implementation of the investment project, Mobifone, the Ministry of Information and Communications, the Government Office and relevant agencies committed many shortcomings and violations: The investment project had not yet been approved by the Prime Minister, but the Ministry of Information and Communications issued a decision approving Mobifone's television service investment project, violating the Investment Law;

Approving investment projects without approving the 5-year investment development strategy and plan. The Ministry of Information and Communications, with the functions and tasks of the state management and ownership representative agency, was irresponsible in appraising the project; The decision to approve the investment project did not ensure a legal basis, violating the provisions of the law...