Vinalines sells incriminating floating dock at knock-down price
Vinalines sells incriminating floating dock at knock-down price
Vietnam National Shipping Lines (Vinalines) has completed the bid to sell its floating dock 83M for VND38.5 billion ($1.71 million), according to newswire Tienphong.vn.
However, there is no information about the winner.
Floating dock 83M, which was purchased in 2008, is currently anchored at Go Dau port in the southern province of Dong Nai. It has been abandoned since its purchase.
The dock was retained by authorities as the material evidence of two criminal cases: one is intentionally violating state regulations on economic management, causing serious consequences and asset embezzlement at Vinalines; the other related to asset embezzlement at Vinalines Shipyard Limited (VNLSY), a subsidiary of Vinalines.
The charges were made because former board members of Vinalines were found guilty of falsifying documents and accepting kickbacks for themselves and others, totalling $1.66 million, in a corrupt deal to buy the aging floating dock from Russia at an over-inflated price, causing a $17.26 million loss to the state budget.
Since late 2012, Vinalines contacted the ministry with plans of teaming up with capable investors to operate it or leasing it.
However, despite Vinalines’ attempts to find investors, the fate of the floating dock had remained undecided until recently.
As of December 31, 2015, the estimated value of the floating dock was over VND500 billion ($22 million), including Vinalines’ expenses for buying the floating dock, port services, and maintenance expenditures.
In November 2015, VNLSY signed a deal with a local consulting firm to appraise the floating dock. The value was then put at only VND34.8 billion ($1.55 million), as the steel structure had significantly deteriorated over the years of abandonment.
Therefore, in February 2016, Vinalines requested for the Ministry of Transport’s permission to auction the floating dock for the initial price of VND34.8 billion ($1.5 million).
