Ex-officials nabbed for stock market fraud

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Investigators with the Ministry of Public Security Wednesday arrested in Hanoi two former officials of a subsidiary company of the state-owned oil and gas group PetroVietnam for management violations.

 

Dao Duy Phong, former chairman of the PetroVietnam Real Estate Joint-stock Company (PVPowerland), and Nguyen Ngoc Sinh, former director general of the company, will be kept in custody for four months, investigators said.

 

They are accused of "lacking responsibility," resulting in the company incurring losses of billions of dong in the sale of shares of Thai Binh Duong Services Joint-stock Company, of which PVPowerland is a founding shareholder.

 

The investigators had last month placed Dang Sy Hung, former chief of PVPowerland's economics and planning department under investigation, the Nguoi Lao Dong newspaper reported.

 

The paper also said that Hung was still at large.

 

Initial enquiries show that when selling 12 million shares of PVPowerland to Le Hoa Binh, chairman of the 1-5 Construction and Services Joint-stock Company, Hung and Binh made a deal at VND14,000 per share, while it was listed at nearly VND21,000, Nguoi Lao Dong said.

 

Hung and his accomplices then pocketed the price difference of VND66 billion (US$3.38 million).

 

The case is being investigated further.

 

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