Executives of state-owned company face trial for $2.7 mln losses

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The prosecutor's office of Ho Chi Minh City has charged four former officials of a state-owned seafood export company with violating economic management regulations, causing the loss of millions of dollars.

Of the four officials, Vo Hue Tran was then director of the Coastal Fisheries Development Corporation (Cofidec) and Nguyen Thanh Xuan was his successor since February 2006.

The two others Dang Huu Thinh and Ngo Ngoc Son are former chief and deputy chief of the export-import department of Cofidec.

They were charged with "deliberately violating the State's regulations on economic management, causing serious consequences."

According to the prosecutors of the People's Procuracy, between 2004 and 2006, Tran and Xuan instructed their subordinates to draft contracts to export seafood to the US without the knowledge of the mother company, the Saigon Trading Group.

Their businesses ended up with the loss of more than US$2.7 million.

Xuan was also charged with "abuse of power" for illegally setting up a company directed by his wife to buy raw materials for Cofidec, after knowing that the company planned to establish a branch in the Mekong Delta province of Bac Lieu.

Xuan also instructed his subordinates to fake papers to transfer 20 million Japanese yen (US$208,000 at that time) that a Japanese company lent Cofidec to his wife's company, according to investigators.

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