Trial of property loss case at Saigon Industrial Corporation

Defendants in court

On May 29, the People's Court of Ho Chi Minh City opened a trial on the case of loss of state assets at Saigon Industry Corporation (CNS) and TIE Joint Stock Company (a subsidiary of CNS, abbreviated as TIE).

Former General Director of Saigon Industry Corporation Chu Tien Dung and 9 accomplices appeared in court for the crime of "Violating regulations on management and use of state assets causing loss and waste," according to Article 219 of the Penal Code.

According to the indictment, former General Director of Saigon Industry Corporation Chu Tien Dung and his accomplices carried out two divestments of Saigon Industry Corporation's investment capital at TIE Joint Stock Company in violation of regulations, causing a loss of more than VND4.6 billion.

Specifically, the first time, Nguyen Hoanh Hoa (former Chairman of the Board of Members of Saigon Industry Corporation) clearly knew that TIE Joint Stock Company had generated profits from the Corporation's investment capital but did not direct the General Director, the unit's capital representative at TIE Joint Stock Company, to implement measures or adjust the appropriate divestment plan and roadmap to recover profits generated before divestment.

Based on Report No. 13/TTr-BTGĐ dated February 19, 2016 of Chu Tien Dung, Nguyen Hoanh Hoa did not convene, organize a meeting of the Board of Members or collect opinions from the members of the Board of Members of Saigon Industry Corporation as prescribed, but signed and issued Decision No. 331/CNS-HDTV dated February 22, 2016 on approving the divestment plan of the Corporation at TIE Joint Stock Company; at the same time, assigned the General Director of CNS to implement this Decision. This violation of the defendants caused Saigon Industry Corporation to lose more than 3.3 billion VND.

In the second divestment, on February 22, 2017, the Board of Directors of TIE Joint Stock Company issued Resolution No. 01/2017/NQ-HDQT on dividend payment for 2015, in which the dividend payment list was finalized on March 9, 2017 and the dividend payment date was from March 28, 2017.

At this time, because Saigon Industry Corporation has transferred all shares owned at TIE Joint Stock Company, it has lost the right to receive dividends in 2015.

In the first quarter of 2017, TIE Joint Stock Company completed the payment of dividends to existing shareholders. Thus, through the selection of the time and method to divest capital for the second time at TIE Joint Stock Company on December 27, 2016 as above, Saigon Industry Corporation lost the right to receive dividends in 2015 corresponding to the ratio of shares sold of more than 1.3 billion VND (1,913,980 shares x 700 VND/share).

In addition, from 2015 to 2018, defendant Chu Tien Dung and his accomplices did not comply with the provisions of law on management and use of the Saigon Industry Corporation's reward fund for foreign affairs, gratitude, and thanks during holidays, Tet or unexpected occasions, causing a loss of more than 17.3 billion VND.

Specifically, the Board of Directors of Saigon Industry Corporation and the Accounting-Finance Department did not check the information of the commended subjects, specific achievements, and the basis for awarding the commendation level to units and individuals, but still signed the submission and payment vouchers...

All award documents do not have a specific list of individuals receiving awards, and do not clearly state their achievements in supporting and contributing to Saigon Industry Corporation to receive awards according to the prescribed criteria and conditions.

The trial is expected to last until May 31.

According to VNA