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Vinamilk executives found guilty of mismanagement
Viet Nam Dairy Products JSC (Vinamilk) violated securities regulations and mishandled billions of dong in State funds over the last few years, according to a statement released by Deputy Prime Minister Nguyen Sinh Hung on Wednesday.
First, Vinamilk was supposed to sell 94,680 shares to employees, but instead allocated the shares to outside investors.
The State owned company's equitisation plan, which was approved by the then Ministry of Industry in 2003, originally indicated 11.2% of total shares would be sold to employees.
Second, the company was supposed to allocate preferential shares to dairy farmers, but instead used its own funds to buy the shares at preferential prices.
Finally, Vinamilk was ordered on Wednesday to pay interests on capital originally earmarked for the Fund for Assisting SOEs' Restructuring and Equitisation. The total amount comes out to VND25.9bil (US$1.61mil).
The money was raised when Vinamilk auctioned shares and was supposed to go toward the fund. The company instead told State officials it needed the cash as operating capital for several months.
The Deputy PM ordered officials to find the Vinamilk executives responsible for the mismanagement and report back to Government Office by the end of November.
The Government's statement clears Vinamilk of other corruption allegations that have plagued the company this year.
"The accusations that executives bought preferential shares and the company along with foreign partners hold a monopoly in the southern milk market are unfounded," said the statement.
Viet Nam News
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