High ranking officials set to stand trial for causing losses to State

Ex-Minister of Industry and Trade Vu Huy Hoang and nine accomplices are set to be brought to trial on January 7 for violations at the ministry and in Ho Chi Minh City that caused losses of some 118 million USD.

The first-instance trial will be held by the Hanoi People’s Court.

Hoang, born in 1953, and Phan Chi Dung, born in 1957 and the former Director of the Light Industry Department at the Ministry of Industry and Trade (MoIT), faced a charge of “violating regulations on the management and use of State assets, causing losses and wastefulness”.

The eight other defendants, who are former HCM City officials, including Nguyen Huu Tin, born in 1957 and the former Vice Chairman of the municipal People’s Committee, were accused of “violating regulations on land management”.

According to the indictment from the Supreme People’s Procuracy, the Saigon Beer - Alcohol - Beverage JSC (Sabeco), which is under the MoIT’s management, was given more than 6,000 sq.m in downtown HCM City for production and business purposes.

However, Hoang, former Deputy Minister Ho Thi Kim Thoa, and Dung directed subordinates at the ministry and Sabeco to carry out procedures for using land use rights and Sabeco's money as capital contributions to set up Sabeco Pearl, a joint venture between the firm and a number of private enterprises, to implement a project building a hotel, a trade and convention centre, and office space for lease on the land.

After Sabeco completed legal procedures for the joint venture’s investment and proposed the HCM City People’s Committee approve the addition of officetel and housing functions to this project, the MoIT ordered the company to transfer all of Sabeco's stake in this project to the private enterprises in the joint venture.

This was illegal and resulted in the State incurring a loss of over 2.713 trillion VND (118 million USD), according to the indictment.

Another of the accused, Ho Thi Kim Thoa, has fled, and the investigation police agency has put her on the wanted list./.