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Thursday, December 2, 2021

Saigon Industry Corp’s ex-leader Chu Tien Dung arrested

The Saigon Times

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HCMC – Ministry of Public Security investigators have arrested Chu Tien Dung, former general director of the state-owned Saigon Industry Corporation (CNS), on alleged charges of mismanaging state assets and thus causing losses.

The police searched Dung’s office at the headquarters of the Saigon Industry Corporation on Nguyen Tat Thanh Street in District 4, HCMC, on November 3.

Investigators filed charges against Do Van Nga, chief accountant and chief of the finance – accounting department of CNS, for the same violations.

Earlier, the ministry’s Security Investigation Agency had begun legal proceedings against the case at the corporation in line with Article 219 of the 2015 Penal Code.

According to the initial results of an investigation, the case at the Saigon Industry Corporation evolves around divestment of state assets under the management of the company.

In early 2017, Saigon Industry Corporation sold its entire 51% stake in the Saigon Electronics and Industrial Services Joint Stock Company (Sagel), collecting a total of nearly VND21 billion. However, Sagel was using a number of land plots at prime locations in HCMC at the time, including one at 119 Pho Quang Street, Phu Nhuan District, which was valued at over VND3 trillion.

Similarly, CNS divested from the TIE Joint Stock Company, which was using some land lots at prime sites in the city.

The corporation’s divestments from Sagel and TIE caused losses of an an estimated VND1.7 trillion for the State.

In early 2019, the People’s Committee of HCMC decided to suspend the transaction and transfer of some land lots that were initially Saigon Industry Corporation’s assets.

Inspectors of HCMC then launched an investigation into the divestment of CNS at Sagel and TIE as well as the transfer of state land through capital injection.

Inspectors have provided the Security Investigation Agency of the Ministry of Public Security with documents over the investigation results of the case for a further probe.

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