Tan Tao Investment & Industry Joint Stock Company, with the Chairwoman of the Board of Directors Dang Thi Hoang Yen residing in the US, on September 12 sent an urgent request for help to the leader of the Communist Party of Vietnam and the Vietnamese National Assembly delegates, saying that there are “conspiracy and actions to sabotage, force death and acquire Tan Tao Company.”
The petition was signed by the Board of Directors including Mr. Dang Quang Hanh – General Director; Ms. Phan Thi Hiep – Standing Deputy General Director; Nguyen Thanh Phuong – Deputy General Director; and Chairman of Trade Union Nguyen Trong Dung.
The petition states that so far Tan Tao Company has not received any official documents from any tax authority, either the General Department of Taxation or the Tax Department of Ho Chi Minh City; However, these agencies have provided information to the press in advance about the tax inspection of Tan Tao Company. The news reports on the state media that ITACO said were accompanied by comments, citing the law to deal with violations … This according to Tan Tao Company has affected the psychology of shareholders and bewildered investors. As a result, ITA shares lost 15% of their value just two days after the news of Tan Tao’s tax inspection.
Vietnam’s state-controlled media on September 6, citing the confirmation of the Ho Chi Minh City Tax Department said that the General Department of Taxation requested in writing that the HCM City Tax Department review the tax declaration data of Tan Tao. -ITA that this company publishes on securities trading homepages, including the homepage of the State Securities Commission of Vietnam.
A clearly stated request is to check and verify the amount that Tan Tao-ITA has advanced to Ms. Dang Thi Hoang Yen, American name is Maya Dangelas (Chairwoman of the Board of Directors of the corporation), in order to promptly develop implement, handle violations if any and avoid loss of revenue for the state budget.
In the financial statement of Tan Tao-ITA announced on July 29, this company recorded an advance payment to Maya Dangelas Dang Thi Hoang Yen of VND1.94 trillion ($80 million) to participate in an investment project in the state of California, USA. The project in question is the development of a high-class pharmaceutical and medical industrial park. The news said the project has been licensed and is completing the procedures to build infrastructure and roads in the area.
However, more than a week later, Tan Tao-ITA corrected that it only spent VND633 billion, not VND1.94 trillion as announced earlier.
In the latest correction report, this advance is a “share transfer contract” according to the resolution of the annual general meeting of shareholders approved three months ago.
Also in the announcement, after adjusting the advance amount for Ms. Dang Thi Hoang Yen, Tan Tao-ITA’s asset structure fluctuated sharply with the value of short-term assets from VND7.6 trillion to VND6.26 trillion. At the same time, long-term assets increased from VND5.64 trillion to VND6.98 trillion. Along with that, ITA’s share price decreased by less than VND8,000/share.
On July 5, ITA released a press release stating that the company listed on the Vietnamese stock market now has no choice but to sue the Vietnamese Government after the Vietnamese side demanded to sell the company’s assets worth billions of dollars as the ITA failed to pay a debt of approximately $900,000 related to an ITA subcontractor while the ITA was not involved in the contract.