Hanoi (VNA) - Three years after aninitial public offering (IPO), the Vietnam Waterway Construction Joint StockCorporation (Vinawaco) has not transferred the State’s capital from thetransport ministry to the State Capital Investment Corporation (SCIC). The largest problem for the company is itslosses and debts, which reached 138 billion VND (6.13 million USD), local media has reported. The problem has stirred public concerns over the chance ofthe Government suffering losses when selling its stake in the company. According to company chairman Ngo Van Tuan, thelosses and debts included 66 billion VND worth of bank loans and 38.2 billion VNDin construction costs for 25 unfinished projects that were launched before2013. The largest bank loan was the 53 billion VND borrowedfrom Vietcombank’s HCM City branch 22 years ago. The loan began at 12billion VND and had generated 40 billion VND in interest after 22 years. Tuan said that the losses and debts were notcovered in the company valuation when it prepared its IPO, thus, the actualnumbers must be larger than the recorded figures. “The State is holding 30 percent of Vinawaco,equal to 109.8 billion VND. If those losses and debts are counted in thevaluation, the State’s capital will be reduced to a negative 30.3 billion VND,”Tuan said. The situation has become worse for Vinawaco, asthe company has been sued by its own shareholders, suppliers and partners,while its bank accounts have been frozen after being declared non-performingloans by local lenders, Vinawaco said in a statement sent to the transportministry. At the company’s annual shareholders meetingheld in late July, Vinawaco reported 440 billion VND in revenue and only 1.8billion VND in post-tax profits – the lowest in three years – resulting in adividend payout rate for shareholders of only 0.6 percent. The company also reported that receivables andinefficient financial investments consumed 56 to 59 percent of the totalpayables, while bank loans have tripled the firm’s owner-equity capital. To sort out solutions for Vinawaco, the Ministryof Transport had asked the company to compile and submit a report on its debtsand losses by September 30, Vietnam News Agency reported on Friday, citingdeputy transport minister Nguyen Van Cong. The report must cover Vinawaco’s loans fromVietcombank’s HCM City branch and other businesses, such as TransportInvestment Cooperation and Import and Export Joint Stock Company (Tracimexco),as well as the company’s receivables and long-term financial investments, hesaid. The ministry will seek solutions to deal withthe firm’s financial losses and debts, and seek charges against individuals andgroups that had led to this situation, Cong said. “The ministry will report anyissues that are beyond its authorisation to the Prime Minister.” Vinawaco was founded in 1982 and has beenoperating as a joint-stock company since June 2014. The company launched itsIPO in late March 2014, selling nine million shares, offered at the IPO for anaverage 10,100 VND per share. The transport ministry has remained ashareholder of the company on behalf of the Government with a 30 per centstake, equal to 109.8 billion VND.-VNA