After the Ministry of Public Security issued a decision to prosecute Mr. Trinh Van Quyet, Chairman of FLC Group yesterday, Quyet authorized Deputy General Director Vu Dang Hai Yen to replace his position in the group.
|Vu Dang Hai Yen, Deputy General Director of FLC Group, will replace and represent Trinh Van Quyet to perform the duties and rights of the Chairwoman of FLC Group and the Chairwoman of Bamboo Airways JSC. (Photo: SGGP)|
Accordingly, Ms. Vu Dang Hai Yen will replace and represent Trinh Van Quyet to perform the duties and rights of the Chairwoman of FLC Group and the Chairwoman of Bamboo Airways JSC, as well as all shareholder rights in the two enterprises mentioned above following the law and the company’s regulations. At the same time, Trinh Van Quyet also authorized Vu Dang Hai Yen to have all rights related to the properties and property rights owned by Trinh Van Quyet.
FLC Group informed that the case related to Trinh Van Quyet personally conducting securities trading transactions was still in the process of the initial investigation and had not any official conclusion. Trinh Van Quyet has been coordinating with relevant authorities in the process of investigating and clarifying related issues.
FLC Group is not a subject involved and/or has activities related to this case. Accordingly, the incident absolutely does not affect or change the important orientations of FLC in production, investment, and business activities, as well as sustainable development in the coming time. At the same time, it also does not affect the legitimate rights and interests of customers, shareholders, and partners who have transactions and cooperation with the group.
Besides this decision, the BOD of FLC also had a meeting and quickly came up with measures and plans to ensure that FLC’s business activities would take place stably in the new situation, in accordance with the objectives and plans set by the BOD and the Board of General Directors.
In 2021, although revenue and profit were not as planned due to two large-scale outbreaks of the Covid-19 pandemic and long social distancing, FLC’s core sectors still recorded many bright spots, including the inauguration and start of many new projects.
With about 300 projects under investment research and legal promotion in more than 40 provinces and cities nationwide, FLC aims to complete the legal process to continue implementing several projects in 2022.
Investors should stay calm and not panic: SSC
Mr. Tran Van Dung, Chairman of the State Securities Commission of Vietnam (SSC), said that the regulator had been coordinating with the investigation agency of the Ministry of Public Security to provide information upon request. In the meantime, the SSC has asked related enterprises to disclose unusual information to investors and shareholders.
“Under the direction of the Ministry of Finance, the SSC and related units will continue to handle all issues in this case. Based on information and results from the Investigation Police Agency, the SSC will carry out affairs within its competence, functions, and tasks. We will resolutely handle the case following the provisions of the law, ensuring the fairness and transparency of the stock market,” Mr. Tran Van Dung said. At the same time, he recommended that investors should stay calm and not panic because Vietnam’s stock market is still positively assessed thanks to good macroeconomic fundamentals and internal factors.
The leader of the Ministry of Finance said that he would continue to coordinate with the Investigation Police Agency to provide relevant information within the functions and duties of the ministry about Trinh Van Quyet and related individuals and companies.
At present, the Ministry of Finance has also directed the SSC and relevant agencies and units to continue to coordinate closely with the investigation agency.
The Minister of Finance emphasized that the spirit of the ministry is to uphold the law, strictly comply with the provisions of the law. Wrongdoings will be strictly handled to maintain discipline and transparency of the market.
Vietnam’s stock market watchdog urges investors to stay calm
The stock market authorities are working with investors to ensure discipline and transparency in the operation of Vietnam’s stock market.
Following the arrest of FLC Chairman Trinh Van Quyet for alleged market manipulation, the State Securities Commission of Vietnam (SSC), the country’s stock market watchdog, called for investors to stay calm.
|FLC Chairman Trinh Van Quyet.|
“Any investment decision should be based on macro-economic factors and actual business performance of the companies in question,” stated the SSC in a statement.
In the past, administrative fines imposed on the FLC Chairman for making the unreported sales of stocks had caused negative impacts on investors’ sentiment and resulted in market instability.
The SSC said it is fully committed to cooperating with other Government agencies regarding the issue, with the aim of “maintaining discipline and transparency of the stock market.”
The Ministry of Finance (MoF) also informed it is working with the investigators to provide information related to Quyet and other individuals at the FLC Group and its subsidiaries.
“It is of great importance to follow the law and order and any violation should be strictly dealt with depending on its severity,” stated the MoF.
On January 10, Quyet sold 74.8 million shares of FLC but failed to notify the market authorities in advance. The transaction was later annulled by the Ho Chi Minh Stock Exchange (HoSE), a move later the SSC said is unprecedented, but necessary to restore the order and discipline of the market.
This incident prompted investors to sell out FLC shares and others related to Quyet, such as ROS, AMD, KLF, or HAI and resulted in their values plunging to the rock-bottom in several subsequent trading sessions.
Many experts attributed the low liquidity of FLC and other related stocks to the market’s downward trend afterward.
The Ministry of Public Security yesterday [March 29] announced the arrest of Quyet for stock market manipulation and hiding information concerning the case on January 10.
On the same day, the FLC Group released a statement distancing the corporation from Quyet’s action.
In this announcement, FLC said the arrest would not impact or change its strategic visions in core business activities, as well as the lawful rights and benefits of customers, shareholders, and partners.
The Group said Quyet has authorized Vu Dang Hai Yen, vice General Director of FLC, to serve as the acting Chairwoman of the Board of Directors of FLC and as the head of Bamboo Airways.
Quyet, 47, was one of the richest men in Vietnam’s stock market and currently owns over 30% stake at FLC Group, or 215 million shares, along with millions of shares in other subsidiaries such as ROS, ART, BOS, and GAB.
The Ministry of Public Security’s Investigation Police Agency on March 29 decided to launch criminal proceedings against and arrest Trinh Van Quyet, Chairman of the FLC Group, pending investigations into suspicion of stock market manipulation.
There is no official info on a travel ban imposed on the Chairman of the Board of Directors of FLC Group JSC as of March 28, said the Office of Investigating Police Agency under Vietnam’s Ministry of Public Security.