Major General Do Huu Ca, former director of Hai Phong city police, was arrested on Wednesday for allegedly fraudulently appropriating VND35 billion ($1.47 million) from a businessman who sought Ca's help to escape from a prison sentence.
Ca was detained by Quang Ninh province police's investigative agency after being temporarily detained for three days.
Ca allegedly received $1.47 million from invoice dealer Truong Xuan Duoc, 52, to help Duoc escape from a possible prison sentence as this person was investigated by Quang Ninh police.
When the incident was discovered, Ca told police that he "did not give money to anyone" but kept it. Ca has now handed the sum over to the investigative agency.
Ca's arrest is part of an expanded investigation into the case of tax evasion and illegal trading of invoices and receipts. Investigative officials discovered that a group of people had established "ghost" companies to illegally buy and sell invoices and evade taxes.
Authorities have temporarily detained Duoc; his wife, Nguyen Thi Ngoc Anh, 44; and Truong Van Nam, 33, for illegally buying and selling invoices. Three others were banned from leaving their residence on charge of tax evasion.
In Hai Phong, Duoc was nicknamed Duoc "Ca" because of his long-term relationship with Ca. Duoc was the focal point to connect with some people at the Dong Trieu Thermal Power Company in the case of illegal purchase and sale of invoices that occurred at this business.
Ca, 65, used to work at Thuy Nguyen district police station, then held the position of chief of staff at Hai Phong's police. In July 2010, he was appointed director of Hai Phong police and retired after nine years in office.
In 2012, Ca directed the handling of the case in which a man named Doan Van Vuon injured six policemen in response to the forced recovery of his aquaculture land by 100 people.
In February 2013, the Prime Minister concluded that the decisions to forcedly recover 19.3 hectares of shrimp ponds of Vuon's family were against the law. Many officials were then prosecuted for directing the demolition of Vuon's premises.