AL approves debate on Viva Macau loan case

The Legislative Assembly (AL) has approved the request of two lawmakers, Pereira Coutinho and Sulu Sou, for a debate to discuss and vote on the controversial Viva Macau bankruptcy case.

The AL has scheduled the debate for August 7. The two lawmakers said the debate will focus on the MOP212 million- loan case, which they had criticized in last week’s AL plenary session.

The Commission Against Corruption (CCAC) is currently investigating the defunct airline to determine whether it had illegally transferred any assets abroad prior to its bankruptcy. However, Sou believes that the probe will take over a year.

“Some cases that were sent to CCAC took over a year to be investigated,” Sou told the Times.

“Maybe a defensive reason explains why the government refuses to provide more details […] to the legislators and the public,” he added.

The CCAC probe was opened at the request of the state-owned Industrial Development and Marketing Fund (FDIC), which loaned MOP212 million to the carrier in 2008 and 2009. Viva Macau is now some MOP1.14 billion in debt.

As the loans exceeded MOP9 million, they required authorization from the then Chief Executive (CE) Edmund Ho, in accordance with FDIC regulations.

Coutinho and Sou also requested an examination of potential family ties involved in the loan process. These may include Kevin Ho, nephew of the former CE, who was a director at the Hong Kong-registered guarantor company Eagle Airways, which never directly undertook any aviation activities. Kevin Ho also owns KNJ investment, who recently bought 30 percent of Portuguese group Global Media.

Sou expressed his hopes for the debate to be productive and for the authorities to disclose all reports and documents related to the loan process, including the carrier’s letters to the government to request the loan.

“The AL president [Ho Iat Seng] approved the legislative debate proposal and I think legally, this is all [for] the good of AL,” he said.

Coutinho had previously criticized the government for failing to indicate that the loan would be repaid, stressing that the scandal is related to the misuse of public treasury without independent external control.