22 suspects prosecuted for serious violations at Việt Nam Rubber Group

22 suspects prosecuted for serious violations at Việt Nam Rubber Group

Their bribery, power abuse and lack of responsibility have resulted in more than VNĐ542.7 billion ($20.8 million) in loss for the State.

The office building of Việt Nam Rubber Group in HCM City. — Photo vrg.vn

The Supreme People’s Procuracy on Monday issued an indictment against 22 suspects in a case involving the state-owned business, Việt Nam Rubber Group (VRG), citing bribery, abuse of power and other serious violations.

The suspects are accused of violating regulations on the management and use of State assets and causing losses and waste; offering or receiving bribes; abusing positions and powers while performing official duties; and lacking responsibility leading to serious consequences.

According to the indictment, during the handling of a land plot at No. 39–39B Bến Vân Đồn Street in HCM City’s Xóm Chiếu Ward, formerly District 4, the suspects allegedly transferred State-owned assets without valuation or auction, in violation of the law.

Their acts of bribery, abuse of power and negligence are said to have resulted in losses of more than VNĐ542.7 billion (US$20.8 million) to the State.

Specifically, VRG’s former acting chairman and general director Lê Quang Thung allegedly received $300,000 and SGD200,000, out of a promised $3 million, to illegally sell the land plot at 39–39B Bến Vân Đồn Street to Lê Y Linh and Đặng Phước Dừa.

Linh was the former representative chairwoman of Retro Harvest Finance Co Ltd in Việt Nam, former director of Việt Tín Co Ltd and director of Golden Lotus Investment JSC. Dừa formerly served as chairman of Việt Tín Co Ltd.

Abusing his position and authority, Thung allegedly directed subordinates at VRG and its subsidiaries, Đồng Nai Rubber Corporation and Bà Rịa Rubber Corporation, to transfer the land from public to private ownership without valuation or auction, causing losses of $20.8 million to the State.

All 22 suspects involved in the case will be put on trial at the HCM City People’s Court, according to the indictment issued by the Supreme People’s Procuracy. The HCM City People’s Procuracy has been assigned to exercise prosecutorial authority and supervise the first-instance trial in accordance with the Criminal Procedure Code.

Thung is prosecuted for violating regulations on the management and use of State assets and causing losses and waste, and for accepting bribes, under Article 219(3) and Article 354(4) of the Penal Code.

Linh and Dừa are also to be tried for violating regulations on the management and use of State assets and causing losses and waste, and for offering bribes under Article 364(4) of the Penal Code.

Four other suspects are prosecuted for accepting bribes: Trần Ngọc Thuận, former VRG director and board member; Khương Thanh Tùng, director of Thăng Long Control and Valuation JSC; and Đoàn Ngọc Phương and Cao Đại Nghĩa, two officials from the former Ministry of Natural Resources and Environment’s Department of Land Resources Planning and Development.

Other suspects being tried for violating regulations on the management and use of State assets and causing losses and waste include 11 executives and employees of VRG and its subsidiaries Đồng Nai Rubber Corporation and Bà Rịa Rubber Corporation, and Nguyễn Thị Như Loan, former chairwoman and general director of Quốc Cường Gia Lai JSC.

Trần Khắc Chung, a former member of VRG’s Internal Audit Committee, is prosecuted for lack of responsibility leading to serious consequences under Article 360(3) of the Penal Code. 

Bizhub