Ocean Bank freezes PAMCO accounts

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PAMCO responded by writing the State Securities Commission of Vietnam regarding the account freeze at Ocean Bank saying that, “The reasons the accounts were frozen was because Ocean Bank misunderstood PAMCO’s credit loans and obligations to Ocean Bank given PAMCO’s role as manager of the bank’s investment portfolio.”

PAMCO added that it is an asset management firm, operating within Vietnamese regulations and that it does not have any outstanding debts, lending or guaranteeing activities with any credit organisation including Ocean Bank.

Regarding the agreement entrusting PAMCO to manage Ocean Bank’s investment portfolio, PAMCO stated that both parties have completed the final steps of liquidation but that there is a final remaining over-the-counter (OCT) stock portfolio that PAMCO has not yet transferred to Ocean Bank due to incomplete legal framework.

Ocean Bank however has refused to comment on the account freeze.

According to PAMCO, the frozen accounts are deposit accounts placed at Ocean Bank and all deposit accounts entrusted by its clients are still active, and therefore PAMCO clients’ rights and benefits are not affected. PAMCO itself is still operating normally.

PAMCO’s audited financial report showed that as of June 30, 2014 it had nearly VND705 million ($335,714) in its Ocean Bank accounts, of a total nearly VND30 billion ($1.43 million) in cash and equivalents.

Additionally, the portfolio that Ocean Bank entrusted to PAMCO was valued at VND553 billion ($26.33 million) at the time, accounting for over 40 per cent of the total investment portfolios entrusted to PAMCO. This portfolio earned Ocean Bank VND1.4 billion ($666,667) in the first half of 2014.

In PAMCO’s third quarter financial report, the company had Ocean Hospitality shares valued at VND3.5 billion. All PAMCO public reports did not show any long or short-term debts.

On January 7 two members of the board of management, Hoang Thi Hong Tu and Dinh Thi Anh Phuong, resigned. PAMCO appointed Le Dinh Quang and Le Thi Quynh Trang as their successors.

PAMCO has urged Ocean Bank to request the Police Investigation Agency under the Ministry of Public Security to cease the account freeze so the company can pay its operating expenses.

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