From the Warning of the State Securities Commission and the Suspension of Auditors: A Look Back at the Trillions in Cash Flow at Saigon Water Infrastructure (SII)

The State Securities Commission (SSC) has concluded that SII’s 2024 audited financial statements do not meet requirements, leading to the suspension of the involved auditors. A significant change occurred when DNP Water increased its ownership in SII to 50.6%. SII sold 40.85% of shares in Tan Hiep Water Investment Company, generating a profit of 544.6 billion VND in 2024, with revenue primarily from divestment. However, the company later reported a loss of nearly 22 billion VND in the first half of 2025. Cash flow from divestment was redirected to lending activities, increasing short-term receivables to over one-third of total assets. Many large loans have no collateral, linked to key individuals in the lending companies. As of June 30, 2025, SII had total debts of 725.9 billion VND, and the Chairman confirmed that all transactions complied with procedures.