At the regular government press conference on April 2nd, Hoang Vinh Bao, Deputy Minister of Information and Communications, answered the press about AVG's contract cancellation and refund for Mobifone.
Bao said that AVG shareholders had paid back Mobifone nearly $110 million.
As committed by AVG, within 90 days at most after the contract cancellation agreement is signed, the money will be paid off. The Ministry of Information and Communications is directing Mobifone to speed up the process.
"This deal involves Mobifone, a state-owned enterprise, owned by the Ministry of Information and Communications. As a result, the Ministry has the right to direct the contract cancellation and refund. Cancelling MobiFone’s contract to buy AVG is reasonable," Bao said.
According to him, the full text of the inspection conclusions was issued, with which Prime Minister agreed.
Previously, on March 12th, AVG and Mobifone cancelled the share purchase agreement. AVG had to refund the money that Mobifone has spent to own 95% of AVG shares.
Two days later, the Government Inspectorate officially announced the conclusion of a comprehensive inspection on this deal. The conclusion showed a series of violations of Mobifone; especially it stressed the risk of wasting more than $307.5 million out of the State’s capital.
