The Macau Commission Against Corruption (CCAC) has launched an investigation to check whether Viva Macau (Macau International) illegally transferred any of its assets abroad prior to its bankruptcy in 2010, the Macau Daily Times has reported.
The probe was opened at the request of the state-owned Industrial Development and Marketing Fund (FDIC) which loaned MOP212 million patacas (USD26.2 million) to the carrier in 2008 and 2009.
The government is also determined to continue criminal and civil proceedings against the carrier to recover as much as possible from its debt. The main thrust of the legal actions will be directed at Hong Kong-based Eagle Airways, a shell company which did not conduct any aviation activities itself. Eagle Airways loaned MOP470 million to Viva Macau and was the airline's largest individual creditor. The company also acted as a guarantor for the loan given out by the FDIC.
Eagle Airways was headed by Kevin Ho, a nephew of Edmund Ho, who was the Chief Executive of Macau between 1999 and 2009.
The recently concluded Viva Macau bankruptcy proceedings left nearly all 1,800 creditors of the airline disappointed as the court had only managed to recover MOP98,000 worth of assets to cover for the total debt estimated at MOP1.14 billion.
Viva Macau launched operations in 2006 but went bankrupt in 2010 in the wake of the global financial crisis. The airline operated out of Macau International to Asia and Australia.
