Law

Wrongdoings result in arrest of former CEO of Saigon Industry Corporation

SGGP
The Ministry of Public Security investigators have filed legal proceedings against Chu Tien Dung, former general director of the state-owned Saigon Industry Corporation (CNS) and arrested him for alleged charges of mismanaging state assets and thus causing losses.
Investigators also filed charges against Do Van Nga, chief accountant and chief of finance – accounting department of CNS for the same violations.
The above two defendants are related to violations while using the company’s reward funds and financial management. Specifically, in the period from 2015-2018, the Ho Chi Minh City Inspectorate discovered that CNS used the bonus fund to pay for outside individuals and organizations but did not have a list of signatories.
Inspector also found out other violations. Some employees of the company had been using credit cards issued by CNS for paid transactions without receipts but the company still re-paid them later. For instance, from 2015-2018, former CEO Dung used a payment card of more than VND1.7 billion including more than VND1.2 billion for personal spending.
Additionally, Dung made other violations during the company’s divestment and investment which inspectors detected petitioning police investigators to jump into an investigation. In 2015, CNS divested from two TIE Joint Stock Company and Saigon Electronics Joint Stock Company - Sagel and later poured money into Mai Hoa Company with the value of two land plots at 181 Dien Bien Phu Street in Binh Thanh District and 200 Vo Van Tan Street in District 3 for commercial and service projects. Because of the delay of the project, the People's Committee of Ho Chi Minh City recovered the two land plots from Mai Hoa Company in 2019.
By 2019, the Ministry of Public Security requested CNS to provide documents related to divestment activities at TIE Joint Stock Company and Saigon Electronics Joint Stock Company - Sagel after a denunciation stating many violations causing losses of exiting state assets in divestment activities in these two companies. At that time, CNS confirmed that the denunciation against CNS about the divestment of the two companies above causing a loss of VND1,700 billion was a false accusation

By Van Minh - Translated by Anh Quan

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