The board of directors of TTF has submitted to shareholders a plan to fix the existing problems suggested by Vo Truong Thanh, former chair and CEO of TTF, and Vo Diep Van Tuan, Thanh’s son and former deputy CEO.Under the plan, Thanh and Tuan would compensate a part of the consequences caused by his poor management in cash or assets.
In exchange, Thanh and Tuan will be free of all responsibilities, including legal responsibility. TTF will work with Tan Lien Phat, the big shareholder which holds 30 percent of TTF shares, so that Tan Lien Phat waives its claim against Thanh and Tuan.
TTF, under management by Thanh and Tuan, incurred the loss of VND1.1 trillion in the second quarter of 2016 because of the ‘evaporation’ of inventory products and provisioning.
|TTF and Sacombank cases have reminded people of the big losses of trillions of dong incurred by state-owned enterprises such as Dinh Vu Fiber Plant, Thai Nguyen Steel Mill and Dung Quat Ethanol Plant in Quang Ngai. No one is taking responsibility for the losses.|
Prior to that, in 2015, Tram Be, who was then deputy chair of Sacombank, also voluntarily transferred Sacombank and Southern Bank shares to the State Bank and the institutions or individuals appointed by the State Bank. The institutions or individuals have full rights as shareholders at the banks.
Be promised that during the process of implementing the restructure and debt settlement of the bank after the merger, if the value of the assets guaranteeing his debt obligations is not big enough, he will provide other assets under his ownership.
Using personal properties to compensate businesses’ losses is believed to be a reasonable solution that helps ease losses for businesses and shareholders. However, the solution is not appreciated by many people.
In case of TTF, Thanh and Tuan proposed to transfer 15 million TTF shares, VND57 billion worth of capital contributed to other enterprises. They also have other assets, including land and houses. The total assets are worth VND160 billion.
According to Huynh Minh Tuan from VnDirect Securities Company, the consequences to TTF are too big (the company lost VND1.1 trillion, prestige has been seriously affected) which cannot be compensated by private assets.
He also pointed out that the mismanagement made investors lose big money. Many of them bought TTF shares at VND30,000-40,000 per share and had to sell at VND6,000 per share, which means they lose VND34,000 for every share.
“The total damages to shareholders are worth up to trillions of dong,” he said.
TTF and Sacombank cases have reminded people of the big losses of trillions of dong incurred by state-owned enterprises such as Dinh Vu Fiber Plant, Thai Nguyen Steel Mill and Dung Quat Ethanol Plant in Quang Ngai. No one is taking responsibility for the losses.