Thursday, October 27 2016


Executives face trial on embezzlement charges

Update: November, 26/2015 - 10:28
HCM CITY (VNS) — The People's Court of Ho Chi Minh City yesterday commenced a preliminary hearing for two defendants involved in a major embezzlement scandal at the Agribank Financial Leasing Company No 2 (ALC II).

This is one of the eight key cases that the Central Steering Committee on Anti-corruption requested to bring to trial before the 12th National Party Congress, slated for early 2016.

According to the indictment, Vu Quoc Hao, former Director of ALC II and Dang Van Hai, ex-Chairman of Quang Vinh Construction and Trade Co Ltd, were prosecuted for "misappropriating public property" and "intentionally violating State regulations on economic management that causes severe consequences."

In 2014, Hao received a death sentence and a life sentence for commiting embezzlement and abusing power and position in several other cases.

In the current case, he borrowed VND60 billion (US$2.64 million) from Le Hoang Tam, Director of the Hai Phong-based Dai Duong shipbuilding company. Hao transferred the money to Chairman of the Ham Rong Company Le Van Phong to invest in the Truong An apartment project in Thuan An commune of southern Binh Duong Province and buy land in District 7, Ho Chi Minh City.

To pay debt, Hao and Hai signed financial leasing and false contracts to withdraw money from ALC II.

Using "blank/fake" contracts signed with Quang Vinh Co., Hao transferred to Quang Vinh VND120 billion ($5.2 million) from ALCII, and pocketed VND75 billion ($3.3 million) of the amount.

Also in 2007, Hao ordered the establishment of Cat Long Hai Joint Stock Company, an affiliate of ACL II. Then he directed his subordinates at the new company to buy an old submarine for VND100 million ($4,700).

Hao colluded with members of the Vietnam Verification and Appraisal Joint Stock Company (VIVACO) to falsely assess the value of the old ship at VND130 billion ($6.15 million).

He later appropriated VND78 billion (nearly $3.7 million) and used the money to buy 90,000sq.m in Tien Giang Province.

The indictment stated that Hao and Hai violated Articles 165 and 278 of the Penal Code. According to the law, the highest penalty for such violations is the death sentence.

The hearing will run until November 30. — VNS

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