Tat Thanh Cang, former deputy secretary of Ho Chi Minh City’s Party Committee, on Thursday saw his previous prison sentence reduced by 18 months under a court of appeal ruling, to eight years and six months.
After three days of trial, the High People's Court in HCMC accepted the Procurator's proposal, reducing the 50 year old's prison term, dealt for violating regulations on the management and utilizing of state assets, causing loss and waste.
According to the jury, the defendant, as acting deputy secretary in charge of the Party Committee’s Office - the owner of the committee’s capital at Sadeco - must have been well aware that any sale of additional shares to increase charter capital must be conducted via auction in line with the law.
However, Cang approved the sale of nine million Sadeco shares at the price of VND40,000 per share to Nguyen Kim Investment JSC without an auction.
The approved price was lower than the market value, causing a VND669 billion ($28.87 million) loss to the state budget.
When the case was discovered, Nguyen Kim Company returned all nine million shares and associated profits to Sadeco.
"Defendant Cang has a good personal background, committed a crime for the first time, has a family with meritorious services to the revolution, received many certificates of merit in his work history, sincerely admitted his wrongdoings, and contributed to entirely recovering the state budget losses," the jury stated while explaining the reasons for the sentence reduction.
As for Te Tri Dung, former board chairman of Sadeco, the appellate court determined that the defendant had used the corporate valuation from a company not licensed to evaluate corporate assets, leading to the lower price of Sadeco shares when being transfered to Nguyen Kim Company.
Dung and his accomplices also caused damage to Sadeco when directing subordinates to fund the "visiting, surveying, and studying" trips of certain individuals, in opposition to state regulations.
Moreover, he embezzled VND4.6 billion ($198,500) of the company's remuneration and bonus fund without giving it back to the state capital owner.
The appellate court accepted the proposal of the Procuracy, noting that Dung's family had compensated Sadeco VND485 million, so the 10-year sentence was reduced to nine years in prison for the crime of state asset embezzlement.
Combined with 10 years in prison for violating regulations on management and use of state assets, causing loss and waste, Dung must serve a penalty of 19 years in prison.