The former "king" of the steel industry recorded losses in the third quarter of 2022. This result further confirms the warning of billionaire Tran Dinh Long.
The future of TISCO II remains a big question mark, but since the beginning of the year, this stalled project has already consumed more than 241 billion VND.
The former chairman of VINAINCON denies accusations of abandoning the Thai Nguyen Steel Plant project due to lack of capacity and asserts that the company is not at fault for the project's delays.
In the prosecution's closing arguments, defendant Mai Van Tinh, former Chairman of the Board of Directors of Vietnam Steel Corporation, was recommended a sentence of 6-7 years in prison.
The defendants in the Thai Nguyen Steel Plant case argue that it is because of a document from the Ministry of Industry and Trade directing the project to continue that they are now standing before the court.
A TISCO representative stated that the 830 billion VND figure does not represent the final loss for the company, while the former chairman of Vietnam Steel Corporation denied embezzling assets.
In court, defendant Mai Van Tinh admitted to making mistakes and not being thorough enough in the Thai Nguyen Steel Plant project because he "trusted his colleagues too much."
Regarding the 830 billion VND in damages, a TISCO representative stated that this is interest paid to the bank, but since the project is still underway, the final amount of the loss is unknown.
TISCO's TIS stock rose 2,91% to 10.600 VND on a trading day that saw the VN-Index surge nearly 21 points.
This morning (April 12), 19 defendants accused of causing 830 billion VND in losses at the Thai Nguyen Steel and Iron Project were escorted to the Hanoi City People's Court for the first-instance trial.
Former leaders of Vietnam Steel Corporation are accused of wrongdoing in the implementation of the second phase of the Thai Nguyen Iron and Steel Company's production expansion project, causing losses of over 830 billion VND.
In the irregularities that occurred at the Thai Nguyen Steel Plant project, 19 defendants were prosecuted by the Supreme People's Procuratorate with two groups of charges.
According to the indictment, Vinaincon was selected as a subcontractor in the TISCO 2 project despite lacking the necessary qualifications; this increased the total investment cost of the project.
Nineteen defendants have been prosecuted for numerous violations that occurred during the implementation of the second phase of the Thai Nguyen Iron and Steel Company's production expansion project, causing losses exceeding 830 billion VND.
Since the beginning of the year, TIS shares of Thai Nguyen Steel Corporation have fallen by 33,3%, and after-tax profit has also plummeted by 60% to just over 16 billion VND.
The Investigation Department of the Ministry of Public Security has just issued a decision to initiate a criminal case and prosecute 14 defendants for investigation related to irregularities that occurred at Thai Nguyen Iron and Steel Company (TISCO).
The auditors issued a qualified opinion regarding the project that Vietnam Steel Corporation is investing in at Tisco Thai Nguyen.
If the principal and interest payments on Tisco's debt were to "evaporate" the value of one Camry a day, then at Thai Binh 2 Thermal Power Plant, this amount is roughly equivalent to five Camrys.
Tisco's finances are in an extremely difficult situation, with the risk of a financial crisis leading to bankruptcy looming.
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