The Macau Commission Against Corruption (CCAC) has opened an investigation into Viva Macau at the request of the Industrial Development and Marketing Fund (FDIC), in relation to a MOP212 million loan to the now-
defunct air carrier.
The CCAC will investigate whether there was any illegal transfer of assets from Viva Macau to external companies or individuals prior to its bankruptcy eight years ago.
Secretary for Economy and Finance Lionel Leong took the decision to forward the case to the CCAC, just a few days after he told reporters that the government is asking its lawyers to continue the case against Viva Macau’s guarantor, Eagle Airways Holdings Limited.
He said that the government was not prepared to have the debt forgiven and would pursue civil means to reclaim the funds.
The total debt of Viva Macau amounts to some MOP1.14 billion.
The FDIC was the second largest creditor after Eagle Airways, which loaned around MOP470 million. In total, there were some 1,800 known creditors including airlines, airports of several cities, travel agencies and banks.
The bankruptcy proceedings for the low cost airline concluded last month and left creditors without a means to recover their investments.
The Court of Final Appeal has already ruled that Viva Macau no longer has any other property or funds with which to pay creditors. That came after just MOP98,000 worth of assets was seized from the company. Accordingly, the court said prosecutors must pursue its Hong Kong-based guarantor, Eagle Airways, in order to recover the debt. However, the court was unsure of whether the current period for prosecuting such an offence has or has not already expired.
The CCAC is now investigating the case, seeking to determine whether there were any illegal transfers of assets from Viva Macau, prior to its bankruptcy.
Viva Macau was operational between 2006 and 2010, when, after an accumulation of debt and the cancellation of flights, local authorities canceled the airline’s license. In November 2010, the government filed a lawsuit against the airline to recover the MOP212-million loan.
More recently, some legislators have requested that the government provide information on the make-up of the committee that initially approved the loan. Secretary Leong indicated that the FDIC would work closely with legislators as the case develops.
Businessman Kevin Ho was a director at the guarantor company, Eagle Airways. However, authorities have been unable to locate any of the assets pledged as collateral by Eagle Airways, a Hong Kong-registered company which never directly undertook any aviation activities. Kevin Ho is the nephew of Edmund Ho, who was Chief Executive of Macau between 1999 and 2009. Ho also owns KNJ investment, who recently bought 30 percent of Portuguese group Global Media.
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