HCMC – The Government Inspectorate has proposed that the Prime Minister instruct the Ministry of Construction to review and deal with the ministry’s leadership in the 2007-2008 and 2016-2017 periods, along with any associated organizations and individuals.
The Government Inspectorate has released a report concluding an inspection of the equitization and state divestment process at the Development Investment Construction JSC, known as DIC Group.
The Ministry of Construction used Decree 187 of 2004 as the legal basis for approving the equitization plan for DIC Group, but this did not follow the rules. Additionally, it approved the company value for equitization without a required review by the Equitization Steering Committee, which also violated regulations.
The consulting firm, VIVACO, along with the Ministry of Construction, did not review the land use rights for the Dai Phuoc Ecological Tourism Urban Area project. Instead, they incorporated the accumulated investment costs and the value of development rights into the company valuation for equitization.
DIC included losses of about VND23 billion from its three subsidiaries in the process of settling the state capital value, with the Ministry of Construction approving these losses to be added to the state capital value for transfer to the joint-stock company. This did not follow regulations.
Moreover, the ministry also failed to fully fulfill its responsibilities in directing the pricing of the private placement of shares in 2009 for DIC Group.
The Government Inspectorate said that the Equitization Steering Committee, the Ministry of Construction leadership for the 2007-2008 period, and the related organizations and individuals are held accountable for violations concerning the equitization procedures and the failure to reassess the land use rights for the Dai Phuoc Ecological Tourism Urban Area project.
The Equitization Steering Committee, the Ministry of Construction leadership for 2008 and 2016, and the related organizations and individuals are responsible for violations related to the losses of subsidiaries during the settlement of state capital.
Given the violations identified in DIC Group, the Government Inspector General has recommended that the Prime Minister instruct the Ministry of Construction to review and take appropriate action against the leadership for the periods 2007-2008 and 2016-2017, as well as the related organizations and individuals, in accordance with regulations.
