Te Tri Dung, former CEO of Tan Thuan Industrial Promotion Company, attends a meeting in HCMC in 2017. Photo by VnExpress/Huu Khoa
Two former CEOs of state-owned firms have been arrested following a seven-month investigation by HCMC authorities.
On Tuesday night, Te Tri Dung, former CEO of Tan Thuan Industrial Promotion Company (IPC), was arrested by HCMC police for “embezzlement” and “violations of regulations on the management and use of state-owned property that led to losses or wastefulness.”
The same evening, Ho Thi Thanh Phuc, CEO of IPC-owned South Saigon Development Corporation (Sadeco) was also arrested for the same charges.
Prior to the arrest, Dung had been suspended from his post pending the investigation. He was directly involved in the selling of IPC’s shares in Sadeco at cheap prices in 2017, causing a loss of VND153 billion ($6.5 million) to the city budget.
IPC only used part of the building which it was assigned and illegally rented out office space to 81 companies, earning more than VND295 billion ($12.6 million) in rent over seven years. Despite the profit, the company signed up for a bank loan on which interest of more than VND8 billion ($341,720) had to be paid.
The investigation also showed that IPC had organized overseas trips for its managers which were not approved by HCMC government. Several spent more time abroad than needed, causing the city to lose another VND1.3 billion ($55,543).
IPC was established by the HCM City People’s Committee in 1993 to work on construction and infrastructure investment programs.
The ongoing anti-corruption campaign spearheaded by Party chief Nguyen Phu Trong has netted big names including government officials and businesspeople.
Embezzlement can face death penalty in Vietnam.