Series of businesses use bond money for improper purposes
On February 13, the Government Inspectorate publicly announced Notice No. 392/TВ-TTСР Announcing the Inspection Conclusion on the compliance with policies and laws on private placement of corporate bonds (TPDN) and the use of funds from private placement of TPDN.
In which, the Government Inspectorate said that there are 3 issuing organizations (TCPH) that have not fully paid principal and interest on bonds; overdue payment of principal and interest on bonds from 2023, including: Hung Thinh Investment Joint Stock Company, Hung Thinh Quy Nhon Entertainment Service Joint Stock Company, Hung Thinh Land Joint Stock Company, with the amount of overdue money not paid up to trillions of VND. The process of issuing bonds and using money from bonds has many violations, especially violations in the use of bond capital of a complex nature. The current financial situation is extremely difficult, the number of investors holding bonds is very large (including thousands of individual investors), it is necessary to be considered, inspected, and closely monitored by relevant functional agencies, to avoid the risk of collapse, risks for investors, affecting the capital market and social security order.
14 SOEs have used the money collected from some bond codes not in accordance with the approved plan, information disclosure or not in accordance with legal regulations, not implemented in accordance with regulations: PC1 Group Joint Stock Company (90,000 million VND), Rong Viet Securities Joint Stock Company (175 million VND), Gelex Group Joint Stock Company (1,205,462 million VND), Hung Thinh Quy Nhon Entertainment Services Joint Stock Company (416,875 million VND), Hung Thinh Investment Joint Stock Company (27,409 million VND), Hung Thinh Land Joint Stock Company (349,718 million VND), Khang Dien House Investment and Trading Joint Stock Company (100,646 million VND), Nam Rach Chiec Co., Ltd. (10,135 million VND), Construction Development Investment Corporation (520,500 million VND), Nam Long Investment Joint Stock Company (245,000 million VND), Thanh Thanh Cong Bien Hoa Joint Stock Company (1,067,392 million VND), Thanh Thanh Cong Investment Joint Stock Company (600,000 million VND), TNH Hotel Investment and Management Joint Stock Company ( 992 million VND).
There are 8 SOEs that use money collected from corporate bond issuance to transfer to partners under investment cooperation contracts or supplement capital for subsidiaries but do not provide grounds and documents proving the management and supervision of the purpose of using corporate bond capital; and/or use money collected from issuance for investment cooperation, some projects do not meet the conditions for capital mobilization, have not been implemented in accordance with regulations, including: Agricultural Material Import-Export Joint Stock Company III (1,730,000 million VND), Green World General Joint Stock Company (1,350,000,000 million VND), Chau Luc Real Estate Foreign Trade and Investment Development Joint Stock Company (1,350,000,000 million VND), DCT Partners Vietnam Co., Ltd. (1,874,900 million VND), Construction Investment and Development Joint Stock Corporation (1,000,000,000 million VND), Hung Thinh Investment Joint Stock Company (2,228,720 million VND), Hung Thinh Land Joint Stock Company (5,557,566 million VND), Vietnam Sturgeon Joint Stock Company (297,799 million VND).
Transferring violations of 3 businesses to the Ministry of Public Security
From the inspection results, the Government Inspectorate proposed that the Prime Minister assign the Ministry of Finance to preside over and coordinate with relevant units to study, advise on amending and supplementing the Government's Decree on private placement of corporate bonds and issue guiding Circulars of the Ministry of Finance to overcome the shortcomings, limitations, obstacles, and inadequacies pointed out in the Inspection Conclusion.
For SOEs, the Government Inspectorate requests SOEs to urgently review and overcome the shortcomings, defects and consequences (if any) mentioned in the inspection conclusion and accompanying appendices; strictly implement the requirements and directions of the State Securities Commission, Hanoi Stock Exchange on the contents of handling violations detected through inspection according to the provisions of corporate bond law and relevant laws; report the implementation results to the Hanoi Stock Exchange, State Securities Commission for synthesis and reporting to the Ministry of Finance and the Government Inspectorate.
Notably, the Government Inspectorate provided information on the violations and shortcomings of 3 companies (Hung Thinh Land Joint Stock Company, Hung Thinh Investment Joint Stock Company, Hung Thinh Quy Nhon Entertainment Service Joint Stock Company) mentioned in the Inspection Conclusion for the Ministry of Public Security to consider and handle according to its authority.
