The State Audit of Vietnam has proposed the Saigon Beer-Alcohol-Beverage Corporation (Sabeco) pay the State Budget nearly 2.5 trillion VND (110.9 million USD) worth of dividends, taken from the brewer’s undistributed profit for the period prior to 2016.(Source: cafef.vn ) Hanoi (VNA) - The State Audit of Vietnam has requested the SaigonBeer-Alcohol-Beverage Corporation (Sabeco) pay to the State budget nearly 2.5trillion VND (110.9 million USD) worth of dividends, taken from the brewer’sundistributed profit for the period prior to 2016.
The amount that brewer Sabeco should pay to the State budget was calculatedbased on the State’s ownership ratio of 89.59 percent at Sabeco as of December31, 2016.
According to Sabeco’s financial report audited by PwC Vietnam Co Ltd, theundistributed profit for the prior-2016 period was more than 2.9 trillion VNDand the distributed profit was 2.78 trillion VND.
For the dividends of the remaining profits that had not been distributed before2016, the representative of the Government in managing the State capital inSabeco on November 4, 2016 sent a letter to the Ministry of Industry and Trade(MoIT) for guidance.
In response, MoIT has not had a plan to make dividend payment out of Sabeco’sprofits. The ministry asked the State capital representative at Sabeco todeliver financial reports each year since it started operating until the end of2016 and asked for the opinions of the Prime Minister about the remainingundistributed profit.
In addition, the State Audit of Vietnam demanded MoIT clarify individual andcollective responsibilities for miscalculating the valuation of Sabeco Pearl, asubsidiary of Sabeco.
In June 2016, Sabeco sold its entire 14.7 million shares or 26 percent stake inSabeco Pearl on a full-package deal at the price of 13,247 VND per share, andthe bidding price was 13,347 VND per share.
The deal has remained confidential and the buyer has remained unknown.
According to the State audit agency, the valuation of Sabeco Pearl showed somemistakes and miscalculations, which reduced the value of Sabeco Pearl andresulted in the loss of State capital.
The State Audit of Vietnam reported that Sabeco had made a provision fund forits financial losses in 10 long-term investment projects, in which Sabeco had20 percent of total charter capital.
The provision was calculated at 77.8 percent of the total investment value,including a 154 billion VND investment in the Orient Commercial Joint StockBank (OCB) and Dong A Joint Stock Commercial Bank (DongA Bank).
Most of those investment deals were not Sabeco’s core businesses and the StateAudit asked the MoIT to clarify the causes and consider individual andcollective responsibilities that were involved in the 10 investment deals.-VNA
VNA
