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Results of MobiFone inspection still under wraps

Released at: 14:19, 25/04/2017

Results of MobiFone inspection still under wraps

Photo: Duc Anh

Inspection of AVG deal completed but conclusions not released as certain matters need to be addressed.

by Quynh Nguyen

An inspection of MobiFone’s purchase of AVG shares has been completed but the results not yet released due to certain problems and the need to compare the results with other inspection units, Mr. Ngo Van Khanh, Government Deputy Chief Inspector, said at the Government Inspectorate's regular press conference  for the first quarter on April 24.

Mr. Khanh said that the inspection was conducted according to regulations but the Government Inspectorate is yet to release its conclusions as there are certain issues still to be clarified.

Inspections of the Vietnam National Coal-Mineral Industries Group (Vinacomin) and the PetroVietnam Construction Joint Stock Corporation (PVC) were also the subject of questions during the press conference.

The Deputy Chief Inspector emphasized that the inspection of Vinacomin has been completed but conclusions not yet announced because uniformity is needed with the Ministry of Industry and Trade and the Ministry of Finance. Similarly, results of the PVC inspection need to be unified with the Ministry of Public Security before publication. 

The Government Inspectorate announced last October it would conduct a comprehensive inspection of PVC. According to Mr. Khanh, this was an extra-ordinary inspection to inspect the observance of legal policies in PVC’s production and business activities, focusing on investment implementation at projects from January 1, 2008 to December 31, 2013.

On September 15, 2016, the Ministry of Public Security's investigative police announced criminal proceedings for violations at PVC. Police arrested four former PVC executives as part of an investigation into some VND3.2 trillion ($142 million) in losses accumulated under their watch.

In August last year, meanwhile, Deputy Prime Minister Truong Hoa Binh officially decided to conduct a comprehensive inspection into the deal in which MobiFone purchased 95 per cent of AVG.

No reason for the inspection was given at that stage but three questions were posed relating to the deal: its value, the transaction method (cash payment or share swap), and why MobiFone chose AVG.

Minister and Chairman of the Office of the Government Mai Tien Dung said that such inspections “are normal activities conducted by agencies” and the final results “will be released after the inspections are completed.”

Any organization or individual, he added, who unlawfully takes advantage of their position and authority for personal gain will be strictly punished according to the law.

MobiFone’s financial report revealed that the official value of its investment in AVG was VND8.9 trillion ($400 million) and was the only investment it made in the first half of last year.

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