HCMC – The HCMC investigative police agency has proposed the city’s prosecutors charge Tat Thanh Cang, former permanent deputy secretary of the municipal Party Committee, and his accomplices for the alleged mismanagement and misuse of State assets, which caused losses and wastefulness.
Investigators completed a probe into the case on January 12, the local media reported.
Accordingly, Cang was involved in violations in the sale of nine million shares of the South Saigon Development Corporation (SADECO) to Nguyen Kim Co., causing losses of VND208 billion for the State.
SADECO is a subsidiary of the State-run Tan Thuan Industrial Promotion Company Limited. In 2015, SADECO had charter capital of some VND170 billion. At the time, it reported an outstanding performance with an after-tax profit of over VND153 billion in 2016 and VND111 billion in 2017 as well as a high annual dividend payout ratio, even 40%.
However, based on a proposal by former SADECO general director Ho Thi Thanh Phuc, who had been prosecuted and arrested, a group of shareholders holding State capital at SADECO suggested the HCMC Party Committee Office come up with a plan to issues SADECO’s shares to its strategic stakeholder, Nguyen Kim Co., to raise SADECO’s charter capital.
On April 28, 2017, the HCMC Party Committee Office asked for Cang’s approval over the proposal.
After the share issuance, the ownership of the State shareholders at SADECO fell from 62.8% to 41%, while Nguyen Kim held more than 54% of SADECO’s charter capital and took control of the corporation.
According to the police, the capacity of the strategic shareholder was not assessed correctly, while the share price was not corresponding to SADECO’s asset value and potential and not based on any legal foundation or to ensure benefits for SADECO and its stakeholders.