Former state-owned corporate executives jailed for abuse of position

By Phan Thuong, Thanh Nien News

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Former state-owned corporate executives jailed for abuse of position


A court in Ho Chi Minh City on Thursday handed down prison terms for two former officials of a state-owned finance company for embezzling more than VND39 billion (US$1.8 million).
The HCMC People's Court sentenced Luu Trung Hieu, former chief executive officer of Vinashin Finance Company, HCMC branch (VFC.HCM), to 14 years' imprisonment and Duong Anh Tu, former director of VFC.HCM Credit and Investment Department, to 8 years' imprisonment.
They were convicted of abuse of position of authority.
VFC is a finance subsidiary of Vinashin, the scandal-plague state-owned shipbuilding firm which had to restructure and renamed Shipbuilding Industry Corporation (SBIC) in late 2013.
Hieu and Tu were found to have granted loans worth VND39.1 billion to eight companies between Aug. 2012 and Aug. 2013.
All eight companies were nominally owned by Hieu's and Tu's relatives and friends, who did not benefit from the loans.
After the loans were disbursed to the companies, Hieu and Tu used them to invest in other personal businesses.
By the time police launched a criminal investigation in Sep. 2014, the duo had lost all the money in a string of failed investments.
Hieu also told investigators that he had used VND1 billion to bribe SBIC Chairman Nguyen Ngoc Su in an attempt to secure the post of vice general director of VFC.
However, the investigators said they could not find substantial evidence to support Hieu's claim.

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