State Securities Commission official turns blind eye to FLC chairman’s violations for fear of job loss
State Securities Commission (SSC) official Le Cong Dien has admitted he spotted multiple problems while checking the capacity profile of Faros Construction JSC - a member of FLC Group - but did not dare to reject its listing application as he was afraid his job could be affected.
Dien claimed he was worried about losing his job as then FLC chairman Trinh Van Quyet "had many relationships with leaders at all levels and owned a company specializing in legal consultancy”, the head of the stock market watchdog's (SSC) Public Company Supervision Department told the police.
Dien was one of three SSC officials accused of intentionally publishing false information or concealing information related to securities activities by the Ministry of Public Security’s investigation agency (C01) on Saturday after they wrapped up an extended probe into a stock manipulation and asset appropriation case involving Quyet.
The two others are Duong Van Thanh, general director of SSC’s Vietnam Securities Depository (VSD); and Pham Minh Trung, head of VSD’s securities registration division.
According to C01, Dien was responsible for appraising and approving listing registration documents and controlling auditing units. When assigned to evaluate the Faros application, he discovered there was insufficient basis to determine contributed capital in the company’s audited reports.
However, he signed a document approving the application and then published it in the media. Later, Faros was successfully listed on the HoSE with charter capital of VND4.3 trillion ($174.5 million).
Dien’s actions helped Quyet and his accomplices to list Faros’s 430 million ROS shares on the Ho Chi Minh Stock Exchange (HoSE) to commit fraud, appropriating more than VND3.6 trillion ($146 million) from investors.
At the police station, Dien admitted his wrongdoings, saying during the appraisal he had requested Faros to provide more evidence, but the company complained twice that he "performed his task beyond authority and caused difficulties for the business". Dien claimed that because he was afraid that his job would be affected, he still did it although he “knew it was wrong".
C01 determined that Dien's actions amounted to intentionally publishing false information or concealing information related to securities activities, andd he has been charged in line with Clause 2, Article 209 of the 2015 Penal Code.
In Thanh's case, as general director of VSD, he received the application to register and deposit 430 million ROS shares with a capital contribution value of VND4.3 trillion from Faros. Thanh clearly knew this profile did not provide enough basis to determine the actual amount of contributed capital.
However, he still signed and issued a securities registration certificate to Faros and notified depository members (securities companies), thus enabling Quyet and his subordinates to appropriate money from investors.
Trung, head of the VSD’s securities registration division, was assigned by Thanh to study Faros's application for securities registration and depository. Although he clearly knew that Faros's documents did not show enough basis to determine the actual amount of contributed capital, he still asked Thanh to sign the securities registration certificate for Faros.
Thanh and Trung admitted their violations and face the same charge as Dien.
In its conclusion, the C01 also proposed prosecuting four former HoSE officials, including former chairman Tran Dac Sinh; Le Hai Tra, former board member, permanent deputy general director and independent member of the Listing Council; Tran Tuan Vu, former deputy general director and vice chairman of the council; and Le Thi Tuyet Hang, member of the council.
The four were charged with abusing power while performing duties per Clause 3, Article 356 of the 2015 Penal Code.
Trinh Van Quyet and seven others were investigated for stock market manipulation and fraudulent appropriation of assets; while 13 were charged with stock market manipulation and 22 with fraudulent appropriation of assets.
- Read More
Vietnam startup expert closes Monkey in Black coffee shop
Tung BT (Tran Thanh Tung), a popular startup expert and social media influencer, is closing his final coffee shop in Ho Chi Minh City, ending a 10-year journey of the "Monkey in Black" brand.
Companies - Thu, November 21, 2024 | 8:16 am GMT+7
Vietnam-Singapore ties set for elevation to comprehensive strategic partnership
Vietnam and Singapore will elevate bilateral ties to a comprehensive strategic partnership and Singaporean Prime Minister Lawrence Wong will visit Vietnam next year.
Politics - Wed, November 20, 2024 | 8:16 pm GMT+7
Vietnam’s Vingroup establishes robotics firms, with co-founder’s 2 sons as major shareholders
Vingroup, Vietnam’s largest private conglomerate by ecosystem, has set up a robotics unit as it moves to ramp up its industrial-high technology ecosystem.
Companies - Wed, November 20, 2024 | 6:17 pm GMT+7
E-commerce, digital platforms likely to pay taxes on behalf of their sellers in Vietnam
E-commerce and digital platforms will have to declare and pay taxes on behalf of their sellers starting January 1, 2025, according to a draft amendment to the Law on Tax Administration.
Finance - Wed, November 20, 2024 | 5:37 pm GMT+7
Flexibility, adaptability key to effective leadership: PepsiCo Vietnam exec
In a rapidly changing world, leaders need to develop the skill of being “as flexible as seaweed,” says Nguyen Viet Ha, general director of PepsiCo Foods Vietnam.
Companies - Wed, November 20, 2024 | 3:52 pm GMT+7
Central Vietnam province okays $88 mln automobile part project
Binh Thuan province's industrial zone authority on Tuesday granted an investment registration certificate to a $88 million project invested by Taiwan’s NeoSCM Limited.
Industries - Wed, November 20, 2024 | 3:44 pm GMT+7
Thai packaging firm Thantawan Industry makes inroad into Vietnam
Thantawan Industry Public Company Limited, a leading Thai manufacturer of premium plastic packaging, has inked a deal for a 30-year factory lease, marking its inaugural investment in Vietnam.
Industries - Wed, November 20, 2024 | 3:34 pm GMT+7
Developer Novaland gets legal hassles cleared for satellite urban area bordering HCMC
Major property developer Novoland has had legal obstacles for its Aqua City project cleared after Dong Nai Chairman Vo Tan Duc approved Tuesday a critical adjustment to the southern province’s urban development plan.
Companies - Wed, November 20, 2024 | 2:29 pm GMT+7
Pegatron to quadruple workforce at $800 mln project in Vietnam
Pegatron Vietnam, a subsidiary of Taiwanese electronics manufacturer Pegatron Corporation, is set to soon quadruple the company's workforce for its $800-million project in Vietnam.
Industries - Wed, November 20, 2024 | 2:03 pm GMT+7
Thailand’s WHA greenlighted to invest $55 mln in central Vietnam industrial park
WHA Group, a leading Thai provider of fully integrated logistics and industrial facilities solutions, has secured in-principle approval from the Vietnamese government to invest in an industrial park in central Vietnam.
Industrial real estate - Wed, November 20, 2024 | 12:01 pm GMT+7
Indonesia, Brazil sign cooperation deals worth $2.65 bln
Indonesia and Brazil on Monday sealed cooperation agreements worth $2.65 billion in the areas of renewable energy, sustainable agriculture and technology at the Indonesia-Brazil Business Forum held in Rio De Janeiro, Brazil, on the sidelines of the G20 Summit.
Southeast Asia - Wed, November 20, 2024 | 11:57 am GMT+7
Nusantara not yet feasible as Indonesia’s capital city: authorities
Indonesian Minister of Home Affairs Tito Karnavian said Jakarta still holds the capital status despite the enactment of State Capital Law No. 3 of 2022, adding that the capital city will officially be relocated after the president issues a presidential decree.
Southeast Asia - Wed, November 20, 2024 | 11:55 am GMT+7
Malaysia’s Halal industry to make up 10.8% of GDP by 2030
Malaysia’s Halal industry is projected to account for 10.8% of the country's GDP by 2030, with an estimated value of RM231.1 billion ($51.7 billion).
Southeast Asia - Wed, November 20, 2024 | 11:48 am GMT+7
Thailand takes more fiscal measures to sustain growth momentum
The Thai government is working on a raft of fresh fiscal measures to sustain an economic recovery, foster new foreign investment, and lower the near-record household debt, says Thai Prime Minister Paetongtarn Shinawatra's top aide.
Southeast Asia - Wed, November 20, 2024 | 11:46 am GMT+7
Indonesia named world's most generous country in 2024
Indonesia has been the world's most generous country for the seventh consecutive year since 2017, reported local weekly magazine Tempo.
Southeast Asia - Wed, November 20, 2024 | 11:41 am GMT+7
Work begins on Mitsubishi Estate’s $55 mln logistics facility in northern Vietnam
Logistics facility brand Logicross, under Japan’s Mitsubishi Estate, kicked off the construction of its Logicross Hai Phong ready-built warehouse in Vietnam’s northern city of Hai Phong on Tuesday.
Industrial real estate - Wed, November 20, 2024 | 10:58 am GMT+7