On October 17, the Government Inspectorate publicly announced Inspection Conclusion No. 276/KL-TTCP on compliance with legal policies on the issuance of individual corporate bonds (CIs) and the use of funds from individual CIs, period January 1, 2015 to June 30, 2023.
In this conclusion, the Government Inspectorate has transferred 2 violations of the issuance of corporate bonds at No Va Real Estate Investment Group Joint Stock Company (Novaland Group) and 3 member companies, 4 related companies to the Ministry of Public Security for consideration and handling.
For Novaland Group and its subsidiaries, the Government Inspectorate determined that 5/18 issuing organizations (TCPH) did not comply with regulations in using TPDN money for the purpose of receiving the transfer of charter capital of organizations and individuals at other enterprises, investment and business cooperation in the real estate sector; however, during the implementation process, there were signs of using money from issuing TPDN for the wrong purpose with the acts of creating transactions, transferring TPDN money through many intermediary organizations and individuals for another company to use ( Nova Business Joint Stock Company); the violation was complicated, some PCs at the time of the inspection had not yet paid principal and interest on TPDN, causing risks to bondholders.
The total amount of corporate bonds from TCPHs through creating transactions and transferring money through organizations and individuals has been transferred to Nova Business Joint Stock Company for use of about VND 7,084 billion from the time of issuance to the time of inspection.
There are 6/18 TCPH in which: 2 TCPH uses corporate bond money to increase capital contributions to subsidiaries, then subsidiaries use corporate bond money to contracts and cooperate with other businesses; 4 TCPH uses corporate bond money to contracts and cooperate with other businesses.
However, these TCPH authorize the cooperating party to use corporate income money without fulfilling the responsibility of managing corporate income money sources to ensure that corporate income is used for the correct purpose according to the issuance plan.
The results of the cash flow review showed that the cooperating enterprises had transferred money to different organizations and individuals for unknown purposes.
For companies related to Novaland Group, 4/20 TCPH violated the use of corporate bonds with signs of being against the purpose, in which: 2 TTH including Green Wich Company and BNP Joint Stock Company used corporate bonds to deposit, contract, and cooperate in business with other enterprises in investing and developing real estate projects while these projects have not ensured the legality according to regulations.
In addition, enterprises that receive cooperation after receiving the corporate bond money have used to pay for many transactions with organizations and individuals with unknown purposes, with large amounts of money, over a long period of time; have signs of incorrect purposes according to the commitment in the contract, have corporate bond money after transferring to the intermediary company and are still owed by another bank; at the time of inspection, the twoCPs mentioned above have not yet paid the principal and interest due, causing risks to bondholders; there are still some PCs ( room room for profit) that have sold all their collateral but have not paid off all of their debts, still have a large balance, and cannot be corrected in the immediate future.
Cat Lien Hoa Company used corporate bond money to receive transfers of capital contributions from individuals at other enterprises, however, this capital contribution was withdrawn by individuals through compensation agreements and site clearance with signs of violating the law.
Residence Company uses corporate bond money to pay a deposit to buy real estate at NovaWorld Phan Thiet Project with Nova Housing Business Company; However, this project has not been opened for sale by the competent authority; After receiving the corporate bond money, Nova Housing Trading Joint Stock Company used it and transferred it to many different organizations and individuals...
With the contents pointed out, the Government Inspectorate has provided information on violations and shortcomings ofCPs for the Ministry of Public Security to consider and handle.
