Police in southern Tra Vinh Province have detained Nguyen Huu Loc, ex-chairman of Seaprodex, one of the country’s leading seafood exporters, for his deliberate violations of economic management regulations. Loc was chairman of Vietnam National Seaproducts Corporation (Seaprodex), Seaproducts Mechanical Shareholdings Company (Seameco), Bien Dong Seafood Company and and Cuu Long Aquafeed Joint Stock Company. He was also a member of Bien Tay Seafood Company’s management board. Also arrested yesterday was Tran Vu Dung, former director of Bien Tay Joint Stock Company, a subsidiary of Seaprodex. The two men have been charged with “intentional acts against the State’s economic management regulations and causing serious consequences,” police said. According to investigators, the two defendants counterfeited financial statements to turn the actual losses into profits and signed false material procurement contracts to appropriate money from the state budget, among other offenses. According to a report by Seaprodex submitted to the Ministry of Agriculture and Rural Development in September 2012, the management board of Bien Dong Seafood Company in June 2007 established Aquafeed Cuu Long Joint Stock Company in the Long Duc Industrial Park in Tra Vinh, with a charter capital of VND1.5 billion (US$72,000). In 2008, Bien Dong increased the capital to VND2.1 billion.Making false contracts, selling shares In 2012, Aquafeed Cuu Long was inspected by the ministry, which confirmed that the Seameco, represented by Dung, had invested more than VND7.2 billion into Aquafeed Cuu Long. Investigators have discovered abnormal acts by Dung and Loc in relation to transferring money from Seameco as investments to Aquafeed Cuu Long and Bien Tay Joint Stock Company, which was set up in 2007. The transfers were made based on bogus contracts for the sale of fish feed prepared by Dung and Loc and signed between the three entities, investigators said. Meanwhile, Loc offered to sell 900,000 shares of Seameco with a nominal value of VND10,000 per share at his own discretion, reducing the State’s stake in Seameco from 59 percent to 49 percent, thereby undermining the controlling role of the State in the company’s operations. Under applicable regulations, Loc was obliged to ask for approval from the board before selling such shares, but he failed to do so, investigators said. In fact, Loc directly controlled all operations of Seameco and Aquafeed Cuu Long, which has fallen deep into debt since January 2012, Bui Thi Tuyet Mai, general director of Seameco, said in a relevant report. Since its establishment, Aquafeed Cuu Long has not sent any reports on operating results to Mai, she said.Insolvency Meanwhile, a January 2012 report from Nguyen Van Tan, who represented the State’s stake in Seameco, said “the financial situation is seriously imbalanced, with the payable debts much larger than the company’s assets. Meanwhile, the company faces difficulties in recovering debts from its debtors, and has even failed to recover them.” Tan also reported that “Aquafeed Cuu Long owed VND100 billion ($4.8 million) to the bank, VND115 billion (including interest) to Seameco, and VND7 billion to other companies.” Meanwhile, the total amount of Aquafeed Cuu Long’s assets and receivable debts was VND150-160 billion. From mid 2011, Aquafeed Cuu Long has had no money to buy materials, and most of its workers have are underemployed or have nothing to do. In addition, the company has not paid workers salary for several months, and owes about VND1 billion to the social insurance agency. The police are continuing to investigate the offenses committed by Loc and Dung.
More
Investor borrows $1.8bn to execute Long Thanh airport project in southern Vietnam
The bank loan has a 20-year term
Read more
McDonald's Vietnam apologizes for improper fast-food ad based on Chinese man’s suicide
It has also removed all the indignation-causing content from the ads on its online food sales platforms
19 hours agoHo Chi Minh City to dismantle illicitly-built projects, including part of Lotte Mart
Lotte Vietnam promised to dismantle the illegally built part of the Lotte Mart shopping center in District 7 before May 31
22 hours agoVietnam marks 70th anniversary of Dien Bien Phu Victory with massive display of force
At 7:45 am, a 21-cannon salute was fired to start the ceremony to celebrate 70 years of the Dien Bien Phu victory
1 day ago1 dies, 18 hospitalized after eating goat blood pudding in northern Vietnam
The goat blood and meat were transported to Thai Binh from Ninh Binh Province, also in northern Vietnam
1 day agoWhat do Hoi An tourists dislike?
'I stayed in Hoi An from April 27 to May 1 and found that there were many problems that needed to be dealt with'
2 days agoHighlights
4 Vietnamese footballers, including former Golden Ball winner, detained in drug probe
Three were regular starters in official lineups
Foreigners disagree on fleecing in Vietnam
7 hours agoPhotos
Artist paints murals on house to raise awareness of COVID-19 prevention in Hanoi
He drew the virus, vaccine, and earth on the exterior walls of a house
Latest news
4 Vietnamese footballers, including former Golden Ball winner, detained in drug probe
Three were regular starters in official lineups
Australia raises minimum savings for student visa, warns on fake recruitment
Australia said on Wednesday it would raise the amount of savings international students will need to get a visa and warned several colleges of fraudulent student recruitment practices, as part of efforts to rein in record migration
Investor borrows $1.8bn to execute Long Thanh airport project in southern Vietnam
The bank loan has a 20-year term
World's record-breaking temperature streak extends through April
The world just experienced its hottest April on record
Heavy rainfall dampens various parts of Ho Chi Minh City
District 12, Thu Duc City, and the two outlying districts of Hoc Mon and Cu Chi experienced thunderstorms
Vietnamese lender LPBank files for name change to ‘Fortune Vietnam Bank’
Its English name’s abbreviation will remain unchanged as LPBank
Hummels stuns Mbappe and PSG to take Dortmund to Champions League final
Mats Hummels headed in the only goal as Borussia Dortmund stunned Kylian Mbappe and Paris Saint-Germain in their Champions League semi-final second leg
Vietnam’s banks spearhead green credit initiatives
Banks assert that this trend is irresistible
AI boom set to fuel data center deals in Asia this year
In 2023, the region's data center deals hit a record high of $3.45 billion
Foreigners disagree on fleecing in Vietnam
Foreigners show a more lenient perspective on the matter