Former Saigon Co.op leader charged with abuse of power

Diệp Dũng at the trial yesterday. In 2016, he allegedly signed two agreements totalling VNĐ1 trillion (US$41 million) without the approval of the Saigon Co.op’s Board of Directors. VNA/VNS Photo Thành Chung

HCM CITY On December 28, the People’s Court of HCM City commenced the trial of defendant Diệp Dũng (former Chairman of the Board of Directors of the Cooperative Alliance of Trade Unions in Ho Chi Minh City – Saigon Co.op) on charges of “abuse of power in the execution of duty.”

Four co-defendants, Nguyễn Thành Nhân (former CEO of Saigon Co.op), Hồ Mỹ Hòa (former CFO of Saigon Co.op), Võ Thành Trung (CEO of the New Urban Company), and Tôn Thất Hào (Director of Đại Á Company), are also being tried for the same offence.

The remaining four defendants, Trần Trung Liệt (former Chief Accountant of Saigon Co.op), Hàng Thanh Dân (former Head of the Saigon Co.op Control Committee), Phạm Thị Minh Ngọc (former Deputy Head of the Saigon Co.op Control Committee), and Nguyễn Thị Thùy Trang (member of the Saigon Co.op Control Committee), faced charges of “negligence causing serious consequences.”

During the morning session, the procuracy presented an indictment. In 2016, Saigon Co.op proposed the acquisition of the Big C Vietnam chain, a project approved by the HCM City People’s Committee. To implement this, on March 4, 2016, Diệp Dũng issued a memorandum calling for capital mobilisation for the project. On March 10, 2016, Saigon Co.op received VNĐ3 trillion (US$123 million) from individuals and companies as capital for the Big C acquisition. However, the auction in late May 2016 was unsuccessful.

Around July 2016, defendant Diệp Dũng directed defendant Hồ Mỹ Hòa to withdraw VNĐ1 trillion ($41 million) from the capital mobilisation account for investment cooperation. On August 19, 2016, without the approval of the Board of Directors, Diệp Dũng unilaterally signed an agreement with Đại Á Company for VNĐ300 billion ($13 million) and another with the New Urban Company for VNĐ700 billion ($28 million), both with an annual fixed profit of seven per cent.

According to the agreements, Saigon Co.op would receive an annual fixed profit of seven per cent on the cooperation amount, with a contract term of three months, and a one-time payment (principal + interest) at the end of the cooperation period. Subsequently, Diệp Dũng, representing the two companies, continued to sign four contract addenda to extend the contract term and maintain the fixed profit of seven per cent per year.

In March 2018, Diệp Dũng signed a supplementary agreement, with the two companies to adjust the seven per cent per year profit rate to 0 per cent per year from August 19, 2016, citing unprofitability in the investment cooperation.

The actions of Diệp Dũng and his accomplices resulted in Saigon Co.op not receiving the interest amount. This adjustment of fixed profit led to damages exceeding VNĐ115.6 billion ($4.7 million), identified in the indictment as the loss in this case.

The trial is scheduled to last two days.

Earlier, at the end of 2022, the People’s Court in HCM City sentenced Diệp Dũng to two years in prison for “misappropriation of State secrets.” During the investigative process into irregularities at Saigon Co.op, Diệp Dũng admitted to being informed about the inspection and verification process.

Subsequently, the police identified Nguyễn Hoài Bắc, a former HCMC Police officer, as the source of leaked investigative information for his partner Lê Thị Phương Hồng, who relayed the information back to Dũng. Bắc was later sentenced to five years in prison, and Hồng received a six-year prison sentence for “intentionally disclosing State secrets.” VNS