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Six former executives of Sadeco charged for alleged asset embezzlement

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HCMC – The HCMC People’s Procuracy has approved filing charges against six former executives of the South Saigon Development Corporation (Sadeco), who were former chief accountant and ex-members of the boards of directors and supervisors of the corporation, for their alleged asset embezzlement.

The move was part of an expanded investigation into the violations of Tat Thanh Cang, former permanent deputy secretary of the HCMC Party Committee, and 18 accomplices at the Tan Thuan Industrial Promotion Company Limited (IPC) and its subsidiary—Sadeco, Thanh Nien Online newspaper reported.

The six comprised Nguyen Van Minh, former head of Sadeco’s board of supervisors; Pham Xuan Trung, ex-deputy general director of IPC; Tran Dang Linh, former deputy general director of Sadeco; Tran Cong Thien, former IPC general director; Huynh Phuoc Long, ex-officer of the HCMC Party Committee Office; and Do Cong Hiep, ex-chief accountant of Sadeco.

Among the six, Linh was detained.

Trung, Linh, Thien, Long and Hiep had been prosecuted for allegedly violating regulations on the management and use of State assets, causing losses and wastefulness.

The six were prosecuted for their alleged involvement in the misuse of the remuneration and bonus fund from 2016 to 2018.

On January 11, Tat Thanh Cang and 18 accomplices were indicted for allegedly violating regulations on the management and use of State assets, causing losses and wastefulness, and embezzling assets at IPC and Sadeco.

In March, the HCMC People’s Procuracy asked the HCMC Police Department’s Economic Police Division to redetermine the State losses in the case and clarify the role of Nguyen Kim Co., which bought nine million shares of Sadeco.

Last month, the Economic Police Division announced the State losses in the case were over VND1.1 trillion, higher than the previous figure of VND940 billion.

The procuracy later required the division to investigate the remuneration and bonus payment at Sadeco and determine the responsibility of each individual for the State losses in the sale of nine million Sadeco shares. As a result, charges were filed against the six.

According to investigators, from December 2017, Sadeco’s director board had nine members, five representing State stakeholders—Dung, former Sadeco general director Ho Thi Thanh Phuc, Long, Thien and Trung. Only Phuc was a dedicated member of Sadeco’s director board, so she could receive her remuneration and bonuses, while the remaining needed to submit the remuneration and bonuses to their companies or agencies.

However, from 2016 to 2018, Te Tri Dung, former IPC general director and Sadeco ex-chairman, abused his position and power to approve the allocation of over VND2.2 billion from the remuneration fund of Sadeco’s director and supervisor boards for these individuals and did not pay IPC and the municipal Party Committee Office their share.

In 2017, Dung also approved the payment of bonuses worth VND5.3 billion for the ex-members of Sadeco’s director and supervisor boards, but only VND413 million was transferred to the HCMC Party Committee Office.

As of December 26, 2018, Dung and the relevant individuals returned the amount.

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