Government Inspectorate transfers Novaland's bond violations to the Ministry of Public Security

(Dan Tri) - According to the Inspector's conclusion, the money raised was "transferred through many intermediary companies" in the Novaland-related business system.

The Government Inspectorate has just publicly concluded the compliance with legal policies on the issuance of individual corporate bonds and the use of funds from individual corporate bonds, from January 1, 2015 to June 30, 2023.

Notably, in the conclusion, the Government Inspectorate transferred two cases of violations in corporate bond issuance at No Va Real Estate Investment Group Joint Stock Company (Novaland Group, stock code: NVL) and three member companies and four related companies to the Ministry of Public Security for consideration and handling.

Money is "circled through many intermediary companies"

At Novaland Group, the inspection agency determined that this unit issued and used 1,500 billion VND from corporate bonds to increase capital in its subsidiary, Khai Hung Real Estate Company Limited.

Then, Khai Hung Company used it to receive the transfer of 99.9% of the capital (about 1,843 billion VND) of charter capital owned by Ms. Vo Thi Kim Khoa at Hoang Kim Century Real Estate Company Limited.

However, through checking the cash flow at several banks, it was shown that Ms. Kim Khoa's capital contribution at The Ky Hoang Kim Company did not exist in reality because most of it was transferred on the same day.

Furthermore, after Novaland Group transferred 1,500 billion VND from corporate bond funds to Khai Hung Company, the money was "circled through many intermediary companies". The final destination was Nova House Trading Joint Stock Company for use.

The Government Inspectorate concluded that Novaland Group and three other member companies, Unity, Aqua, and Lucky House, had committed violations in issuing corporate bonds. After receiving money from the bond source, the individuals transferred it to Nova House Trading Joint Stock Company for use, with a total of about VND7,084 billion.

Although the nature of all intermediary transactions has not been verified, the Government Inspectorate believes that the methods of Novaland Group and its three member companies in using bond money are similar in nature. These companies show signs of coordinating with individuals and legal entities to form the charter capital of individuals in legal entities.

This group also used bond money to receive charter capital transfers, transferred bond money to individuals and then transferred it to Nova House Trading Joint Stock Company for use.

The Government Inspectorate transferred Novaland's bond violations to the Ministry of Public Security (Photo: DT).

4 companies involved in violations

With 20 issuers belonging to the group of companies related to Novaland Group, during the inspection period, 45 individual corporate bond codes were issued, with a total value of VND 27,350 billion. As of June 30, 2023, there are 23 codes in circulation with a total value of VND 16,898 billion, of which 4 organizations have overdue debt of both principal and interest, 2 organizations owe interest. The total debt is VND 4,555 billion.

The inspector concluded that four companies related to Novaland Group had violated the law, including Greenwich Company, BNP Global, Cat Lien Hoa Real Estate Development, and Residence Investment and Development.

Specifically, Greenwich Company issued bonds and used 2,000 billion VND from corporate bond sources to cooperate with An Khang Company. By the end of June 2023, the bonds had overdue principal of more than 1,571 billion VND, overdue interest of more than 241 billion VND, but Greenwich had not yet paid the bondholders. At the time of inspection, there was still a risk of not being able to pay the principal and interest of the bonds, posing risks and causing losses to the bondholders.

BNP Global issued bonds worth VND2,100 billion and used the money to pay part of the value of the Mui Yen project business cooperation contract. By the end of June 2023, the company owed overdue bond principal of more than VND2,000 billion and overdue interest of more than VND64 billion. BNP Global negotiated with bondholders to extend the debt, but was not approved.

Then, by April 12, 2024, the company had paid all overdue interest and part of the principal of VND 833 billion. The remaining unpaid and overdue bond principal is VND 1,216 billion.

The Government Inspectorate believes that the company has violated its responsibility to fully and timely pay the principal and interest of bonds to investors. For now, BNP Global cannot fix the problem and arrange the funds to repay the debt to bondholders.

Cat Lien Hoa Company has issued 986 billion VND in corporate bonds, but is slow in paying interest and principal.

Residence Company issued VND3,000 billion in corporate bonds to pay for the deposit to buy resort villas for Nova House Trading Company at the Nova World Phan Thiet project. However, the inspector said that this was just a "deposit agreement" for Nova House Trading Company to use the bond money with a large value for a long time.

According to the inspection conclusion, 67 bond issuers were inspected, including 5 joint stock commercial banks, 37 joint stock companies, and 25 limited liability companies. Of these, 18 issuers belonged to the Novaland Group, 7 belonged to the T&T Group, etc.

From January 1, 2015 to June 30, 2023, 67 organizations issued a total of 827 corporate bond codes with a total value of more than VND 462,824 billion. Of which, the value of unsecured corporate bonds issued was VND 270,635 billion, equivalent to 58.4% of the total issuance value.

With 18 issuers belonging to Novaland Group and its subsidiaries, the inspectors determined that 131 corporate bond codes have been successfully issued. The codes have a term of 1-5 years, with a total value of 67,100 billion VND.

Except for 22 corporate bond codes with a total value of VND 13,500 billion that have been settled, the remaining 109 codes worth VND 53,500 billion are issued to increase capital in other enterprises; buy capital contributions; pay capital contribution contracts; receive real estate project transfers; and restructure debts.

As of June 30, 2023, there are 59 corporate bond codes in circulation at 18 issuers with a total value of VND 34,835 billion. Of which, 2 issuers are overdue with both principal and interest on bonds, 4 organizations are overdue with interest. The total amount of overdue principal and interest is VND 5,528 billion.

Source: https://dantri.com.vn/kinh-doanh/thanh-tra-chinh-phu-chuyen-vi-pham-trai-phieu-cua-novaland-sang-bo-cong-an-20251017183707166.htm