Director General of VEAM "flies" just because of a "administrative deficiencies procedure"?


On April 1, 2019, Vietnam Motors and Agricultural Machinery Corporation – CTCP (VEAM Corp. – code VEA) published information on the electronic portal of the State Securities Commission, the Council said. The VEAM administration officially issued a resolution on March 29, 2019 on the resignation of the Director-General of Mr. Tran Ngoc Ha.

This decision is made in the context where VEAM is falling into a very rare case, while there are two CEOs after Mr. Tran Ngoc Ha is suspended from the post of VEAM General Director to focus on recovery. debts and sales work with batch production lots of 3,000 Hyundai components.

Director General of VEAM

The decision to dispense with the Director General of VEAM for Mr. Tran Ngoc Ha gave no specific reasons (In the photo: VEAM factory in Thanh Hoa)

Mr. Tran Ngoc Ha was born in 1964 and has worked for VEAM for 30 years as an engineer, market specialist and senior management, ranging from commercial market manager to deputy general manager and general manager. Chairman of the Board of Directors, Secretary of the Party Committee, Member of the Board of Directors, General Director …

In August last year, he was suspended from the position of General Director of VEAM due to the fact that at the end of 2017, he himself decided and appointed the Director of VEAM Automobile Factory to buy 3,000 sets of automotive parts worth about VND 1,600 billion. VND, but not through the Council. Although in the official announcement of the VEAM, as well as the content of the unspecified resolution, Mr. Tran Ngoc Ha was fired, but the great possibility is related to this incident.

However, so far, Mr. Ha still struggles, saying that there are sufficient grounds to prove that he did not make mistakes that the Ministry of Industry and Commerce had previously evaluated. Specifically, at the time of signing the contract in 2017, VEAM's total assets exceeded VND 17,000 billion, based on VEAM's Business Law and Charter, the General Director signed contracts related to production and business. daily of the Corporation below 25% x VND 17,000 = VND 4,250 billion does not require a decision of the Board of Directors.

Therefore, Mr. Ha's position as Managing Director agreed to allow VEAM Automobile Factory to sign a contract to purchase 3,000 Hyundai parts worth VND 1,600 billion under VND 4,250 billion. From the CEO. On the other hand, the purchase of many goods only requires a deposit of 5%, and 95% is a debt of reimbursement according to the plan of sales of 2018, so it does not mainly use the capital of this corporation and the ability to make profits high.

In fact, earlier this year, VEAM completed the entire consumption of 3,000 Hyundai cars and considerable economic benefits. Specifically, the cost of these 3,000 vehicles is VND 1,544.3 billion, but sold VND 1,762.6 billion, net profit temporarily brought to VEAM approximately VND 66 billion.

Mr. Ha just acknowledged that "there are flaws in administrative procedures" by signing the above consignment contract does not express the opinion or written authorization and therefore "only be serious to withdraw experience."

The report of Mr. Tran Ngoc Ha to the Party Committee of the Ministry of Industry and Commerce after 4 months of suspension of the post of Director General to focus on the designated work also showed that from 8/8 to December 31, 2018 recovering VND 116.9 billion of debt to VEAM.

However, this task inevitably faces many challenges, especially with some large debts: the VND debt of 327.6 billion from the Matexim Company as of 2011; the amount of VND 215.8 billion of Matexim Hai Phong Company arising from 2010 and earlier and the Vetranco Company's VND 219.6 billion debt arising from 2013 and earlier. These are all debts incurred before Mr. Tran Ngoc Ha became General Director of VEAM (2015).

Just one day before being dismissed from the post of Director-General (March 28), Mr. Tran Ngoc Ha, as Secretary, signed a report from the Party Party Committee to send to the Party Committee of the Ministry of Industry and Commerce for reflect on the VEAM. There are issues of "inconsistency," especially when between the Chairman of the Board and other company representatives have not yet received unanimous guidance, but still present the resolutions in violation of Decision 4676 of the Ministry of Industry and Commerce.

This report also stated that, since Mr. Ha has been temporarily suspended, the resolutions and decisions on organization and personnel issued by the Board of Directors and the Director General have not consulted the Party Committee. This is a violation of the Party's work in the dominant state-owned enterprises. Currently in VEAM, the Ministry of Industry and Commerce represents a state-owned shareholder that holds 88.47% of the capital.

After being dismissed from the position of Managing Director, Mr. Tran Ngoc Ha is still a member of the Board of Directors and Secretary of the VEAM Party Committee.

Mai Chi

Director General of VEAM
Director General of VEAM


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