Vietnam’s Minister Of Construction Explains Huge Losses Of State Giant

NA deputies questioned the Minister of Construction about outstanding debts and misconducts, equaling VND10 trillion (USD480 million) at Song Da Group.

NA deputy, Tran Minh Dieu, from Quang Binh Province voiced public concerns about the recent alleged misconducts at Vietnam Construction Industry Group (Song Da Group) and raised questions about the agencies’ practices.

Dung said at that time, the Central Inspection Committee carried out inspection, yet nobody was held accountable despite serious misconducts.

Le Nhu Tien, NA Deputy from Quang Tri Province, said Song Da Group is guilty of a number of wrongdoings. A loss of VND1.2 trillion at Halong Cement Company and being unable to repay its foreign debt at Dong Banh cement company project translated into a total of VND10 trillion in losses. He asked, not only how many Song Da subsidiaries are in financial trouble, but also about the minister’s responsibility.

Minister of Construction Trinh Dinh Dung

Minister of Construction Trinh Dinh Dung

Government Inspector General Huynh Phong Tranh

Government Inspector General Huynh Phong Tranh

Dung suggested that the VND10 trillion loss was not a result of business, but of administrative misconducts and shady dealings with subsidiaries.

The inspectorate asked the Song Da Group to pay over VND30 billion back into State budget. The mother company would have to pay VND7.7 billion, and a subsidiary up to 23 billion to return bonuses and benefits not in compliance with regulations.

Government Inspector General, Huynh Phong Tranh, said the scrutiny over the Song Da Group lasted from 2011 to March of this year. A loss of over VND10 trillion was reported to come from major misconducts, include using misuse of capital, not setting up risk prevention fund, investing in non-core businesses and investment exceeding the limits of its chartered capital.

In the period spanning from September to early October, the inspectorate recovered about VND5 trillion and is in the process of trying to recover another VND5 trillion.

However, Tranh said the responsibility of individuals in the company is still under investigation.

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