Vietnam: Sabeco rebuffs state audit’s allegations of management and investing activities violations

Saigon Beer, Alcohol and Beverage Corporation (Sabeco) refuted the state audit’s allegations about its violations in the management of its operations and investing activities before it sold a stake for the foreign partner, while simultaneously affirming that its operation complies with regulations, according to newswire Vnexpress.

Recently, the State Audit Office proposed collecting VND2.5 trillion ($109.8 million) in tax arrears from Sabeco. The lion’s share of this is undeclared profit of VND2.8 trillion ($123.01 million) from 2016.

Besides, the state audit asked Sabeco to explain its losses from investing in banking, stocks, as well as pouring money into financial investment funds.

Sabeco has issued a document explaining the state audit’s allegations, especially the more than VND2.8 trillion ($122.99 million) in profit after which it had not declared tax.

Sabeco expects to earn VND39.3 trillion ($1.73 billion) in revenue in 2018, with net profit of VND4.9 trillion ($217 million), signifying increase of 11 and 2 per cent in revenue and net profit, respectively.

Accordingly, Sabeco explained that the undeclared profit was one of the problems that Sabeco could not solve before conducting the equitisation.

Besides, it affirmed that it published information relating to the state audit’s assessment before it sold the stake for the foreign partner.

Regarding the remaining assessments, Sabeco stated that its operations complied with regulations and were implemented after receiving approval from authorities.

Sabeco’s response came after the Ministry of Industry and Trade (MoIT) instructed the firm to pay nearly VND2.5 trillion ($109.8 million) in tax arrears, following the conclusion of state audit.

"MoIT will cooperate with relevant government agencies in addressing issues presented in the report," stated MoIT in its press release on March 17.

19 March, 2018