Though Debt and Asset Trading Corporation (DATC)’s deposits at Agribank’s Financial Leasing Company II (ALC II) were more than two years overdue as of 31 December 2011, the total interest amount gained only 12.68 billion dong, implying losses of above 70 billion dong.
The State Audit Office of Vietnam said this firm failed to perform its principal duty of debt trading and long-term investment for corporate restructuring.
Moreover, ineffective capital deployment, improper deposit taking and lending and troubled debt trading also remain.
DATC’s funds as of 31 December 2010 totalled to 2,616.49 billion dong, 47.23pct of which was to finance debt purchasing and long-term investment for corporate restructuring.
The capital preservation ratio for 2010 (equity 2010/equity 2009) stayed at 1.04pct. After-tax profit to equity ratio was 5.48pct, much lower than one year ago whereas ratio of after-tax profit over investment capital in affiliates, joint ventures and other long-run investments were 5.2pct, 0.06pct and 2.8pct respectively.
DATC’s receivables and acquired assets were employed to set up Bac Kan-DATC Cement JSC., without price appraisal and handling existing debts and assets.
Deputy State Auditor general Le Minh Khai urged for further involvement of both DATC and State Capital Investment Corporation (SCIC) in the economy reform particularly in terms of state-run enterprise and banking restructuring.