VietNamNet Bridge - Money invested in Phuoc Son cannot rescue the gold company owned by a Canadian group from bankruptcy. Hundreds of creditors, including the chair of a town, have had to resign from their posts to spend time to collect debts.

The Quang Nam provincial People’s Court decided to open bankruptcy proceedings on March 24, 2017. However, more than 100 Phuoc Son creditors have lost sleep for years because of the failure to collect debts from the big gold mining company.

Do Ngoc Thang, former chair of the Kham Duc Town in Phuoc Son district, had to resign from his post in 2014 to spend time to chase debt payments from Phuoc Son, together with his wife, who is director of Quang An Company.

The amount of money Phuoc Son owes to Quang An has reached VND17.5 billion, but Quang An still has not received any dong. 

The amount of money Phuoc Son owes to Quang An has reached VND17.5 billion, but Quang An still has not received any dong.

Thang and his family have had to borrow money from many different sources to implement construction contracts.

Tens of other people in Phuoc Son district have also not been able to collect debts from Phuoc Son.

Ly Minh Tam, director of Ly Chau Giang Trade & Tourism in Kham Duc Town, said Phuoc Son owes VND1.5 billion to his company.

Meanwhile, Le Thi Do, the owner of Trung Do Hotel, estimates that Phuoc Son has not paid VND197 million to the hotel, which is the value of the accommodation service provided to the company’s staff.

Do said she recently received a document from Quang Nam People’s Court, requesting her to send a claim for debt. However, she still has not done this, because she is not sure if she can collect debt, while she is sure she will have to pay a court fee.

Phuoc Son owes VND22 billion to businesses and people in the locality.

After the Quang Nam People’s Court released the decision on opening the bankruptcy proceedings against Phuoc Son, many creditors were worried that they could not get the money back.

The biggest creditor of Phuoc Son is the Quang Nam provincial Taxation Agency, which said Phuoc Son owed VND335 billion in tax. After taking adrastic measures, the agency got VND224 billion back, which means Phuoc Son still owes VND91 billion.

Phuoc Son was allowed to resume the operation of Dak Sa gold mine in August 2016 to help make money pay debts. However, the State Bank has refused to grant a license to the company to export gold.

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