According to the notice on 27/04/2012, after terminating the contract, VCC did not obey the obligations in the contract and still asked the settlement underwriting bank to pay VND44 billion for the contract. However, the bank denied the request and is investigating the appeal. Meanwhile, VCC still owes TKC VND108 billion including value of sub-contractors.

Reasons:

-       According to VCC, TKC is behind the progress and has not intention of continuing the project. This claim is not true and TKC has sent documents to related parties to oppose it.

-       Accoring to TKC: TKC completed its tasks in time on 31/03/2012. Remaining items are work of designated sub-contractors of VCC. Reasons given by VCC were not persuasive, TKC doubts that VCC is taking advantage of the trust of contractors to appropriate VND108 billion and the underwriting amount for the realization of the contract (VND44 billion) to handle foreseen financial problems.

Impact: at present, VCC owes VND108 billion, in which the value realized by TKC is VND33 billion.

Solution: Leaders of TKC and VCC met and decided to solve the problem via negotiation. VCC will pay TKC after receiving the final payment request from TKC.