The Government Inspectorate discovered that ACB used thousands of billions of dong mobilized from bonds for purposes other than those stated in the issuance plan.

ACB uses trillions of money collected from bond issuance to lend medium, long and short term while in the issuance plan approved by ACB's Board of Directors, the purpose of issuing bonds is to "serve the need for medium and long term credit".

The Government Inspectorate has just concluded on compliance with legal policies on issuing individual corporate bonds and using funds from individual corporate bonds (from January 1, 2015 to June 30, 2023).

Accordingly, 67 inspected TCPH include 05 joint stock commercial banks (JSC), 37 joint stock companies (JSC), 25 limited liability companies (LLC); based on the characteristics, nature and requirements of the inspection, they are divided into many groups.

The Government Inspectorate discovered thatACB used money from bonds for purposes other than those stated in the issuance plan.

According to data compiled from reports of 5 credit institutions, in the period from January 1, 2015 to June 30, 2023, 05 credit institutions successfully issued 386 corporate bond codes (non-convertible bonds, without warrants, without collateral); term from 01-10 years; bond interest rate: Fixed interest rate or floating interest rate, in which floating interest rate = reference interest rate plus (+) margin from 0.1% to 2.5%) with a total issuance value of VND 255,142.86 billion, the purpose of issuance is to increase the capital scale of credit institutions, supplement tier 2 capital and other capital to serve customers, serve the credit needs of credit institutions. By June 30, 2023, at 05 credit institutions, there are 173 corporate bond codes in circulation with a total value of VND 97,828.6 billion; The Government Inspectorate inspected 85 TPDN codes at 05 credit institutions within the scope of the inspection.

Notably, regarding the use of funds from corporate bonds, the Government Inspectorate inspected the use of funds from corporate bond issuance based on documents and reporting data provided by credit institutions to assess the consistency and appropriateness of documents and reports compared to the purpose of using corporate bond funds in the issuance plan.

Within the scope of the inspection, the Government Inspectorate only examined a number of transactions using funds collected from corporate bond issuance; through the inspection, it was found that a number of credit institutions used funds collected from corporate bond issuance for purposes not stated in the issuance plan; many credit institutions did not fulfill their responsibilities in managing capital from corporate bond issuance as prescribed.

Specifically: 3/5 credit institutions used the proceeds from the issuance of some corporate bond codes not for the purposes stated in the issuance plan and the content of the information disclosure, not in accordance with the provisions in Clause 3, Article 5, Clause 2, Article 35 of Decree No. 163/2018/ND-CP; Clause 2, Article 5, Clause 2, Article 34 of Decree No. 153/2020/ND-CP.

According to detailed reporting data, ACB used the proceeds from the issuance of bonds coded TPACB2018/10Y (issue date: December 19, 2018, issuance value: VND 2,200 billion) and bonds coded ACB.2019.04 (issue date: December 6, 2019, issuance value: VND 1,500 billion) to lend medium, long and short term while in the issuance plan approved by ACB's Board of Directors, the purpose of issuing the bonds is to "serve the need for medium and long term credit".

Specifically, according to the detailed appendix of the Government Inspectorate, bond code TPACB2018/10Y: The purpose of issuance under Decision No. 4431/TCQD-HĐQT.18 dated December 13, 2018 of the Board of Directors of ACB is to "Increase the scale of the bank's operating capital to serve the need for medium and long-term credit".

However, according to data provided by ACB, ACB disbursed loans on December 20, 2018 and December 21, 2018 with a total loan amount of VND 2,664.59 billion (medium and long-term loans were VND 276.55 billion; short-term loans were VND 2,388.04 billion).

Source: https://daibieunhandan.vn/thanh-tra-chinh-phu-phat-hien-acb-su-dung-hang-nghen-ty-dong-huy-dong-tu-trai-phieu-chua-dung-muc-dich-tai-phuong-an-phat-hanh-10390774.html