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 one of the most dynamic, important pharma markets in Southeast Asia: Sandoz exec
Vietnam is one of the most dynamic and important pharma markets in Southeast Asia, and Sandoz, a Switzerland-headquatered global leader in generic and biosimilar medicines, has decided to invest massively in the country, said Charaf Eddine Kadri, general director of Sandoz Vietnam.
Executive Talk - Mon, December 23, 2024 | 8:36 am GMT+7
Noi Bai, Tan Son Nhat airport terminals to be completed in 2025: investor ACV
The T3 passenger terminal at Tan Son Nhat International Airport in Ho Chi Minh City will be completed by April 30, 2025, two months ahead of schedule, while the expansion of the T2 passenger terminal at Noi Bai International Airport in Hanoi is slated for completion next year.
Infrastructure - Mon, December 23, 2024 | 8:23 am GMT+7
Vietnam’s benchmark VN-Index to reach 1,400-1,420 points in 2025: broker
The VN-Index, representing the Ho Chi Minh Stock Exchange (HoSE), may hit 1,400-1,420 points in 2025, driven by an 18% market-wide profit growth and a price-to-earnings (P/E) ratio of 12.5-13x, according to broker MBBank Securities (MBS).
Finance - Sun, December 22, 2024 | 7:52 pm GMT+7
HCMC's first metro line officially operational after nearly 2 decades
The first urban railway line in Ho Chi Minh City, named Ben Thanh-Suoi Tien, officially started commercial operations on Sunday after nearly two decades of waiting.
Infrastructure - Sun, December 22, 2024 | 2:17 pm GMT+7
Vietnam's 2025 GDP to grow 6.5% on robust infrastructure investment, consumer spending recovery: VinaCapital
Domestic factors, including a ramp-up in Government infrastructure spending, a revival of the real estate market, and a recovery of consumer spending, will help sustain Vietnam's GDP growth at a circa 6.5% pace next year, in-line with the National Assembly’s official target and with 2024 GDP growth, write Michael Kokalari, chief economist at VinaCapital.
Consulting - Sun, December 22, 2024 | 2:00 pm GMT+7
Vietnam shipping, seaport stock rally driven by rosy outlook in 2025
Many shipping and port stocks have risen sharply since November on an optimistic outlook for the industry driven by increasing throughput and a shift in container shipping alliances in 2025.
Companies - Sun, December 22, 2024 | 10:00 am GMT+7
Singapore’s Platinum Victory seeks to raise stake in Vietnam’s REE to nearly 45%
Singaporean fund Platinum Victory Pte. Ltd. has registered to buy another 16.8 million shares in Ho Chi Minh City-based utility firm Refrigeration Electrical Engineering Corporation (REE), aiming to increase its ownership to nearly 45%.
Finance - Sun, December 22, 2024 | 9:29 am GMT+7
1.8 km road connecting Lach Huyen Port terminals to be built in northern Vietnam
The Hai Phong Economic Zone Management Board has taken a significant step forward in enhancing infrastructure around Lach Huyen Port by establishing a council to appraise the environmental impact assessment for the road connecting terminals No. 3 to No. 6.
Economy - Sun, December 22, 2024 | 8:00 am GMT+7
Hanoi TikToker internationally wanted for involving in multi-billion-dollar scam
Hanoi police have issued an international arrest warrant for Le Khac Ngo, known as "Mr. Hunter," a key accomplice in a recently-dismantled massive foreign exchange and securities fraud ring.
Society - Sat, December 21, 2024 | 10:57 pm GMT+7
Unlocking Phu Quoc’s potential to become the 'Hawaii of the East'
Leading global tourism companies have remarked that Phu Quoc has "yet to receive the recognition it deserves," despite its impressive and unexpected growth rate.
Travel - Sat, December 21, 2024 | 7:20 pm GMT+7
Thai central bank maintains policy interest rate at 2.25%
The Thai Chamber of Commerce (TCC) has said it backs the decision by the Bank of Thailand, the country's central bank, to maintain the policy interest rate at 2.25%, considering the move as suitable for a reviving economy.
Southeast Asia - Sat, December 21, 2024 | 5:43 pm GMT+7
Vietnam's military-run tech giant Viettel strikes big deals at international defence expo
Subsidiaries of Military Industry and Telecommunications Group (Viettel) signed a string of significant contracts with major global partners during the first two days of the Vietnam International Defence Expo 2024 in Hanoi.
Companies - Sat, December 21, 2024 | 5:36 pm GMT+7
Taiwan’s Wistron acquires 37ha land lot in northern Vietnam for expansion
Taiwan-headquartered Wistron, a top electronics provider and an Apple supplier, will further its investment in Vietnam’s northern province of Ha Nam by acquiring another 37.1-hectare land lot.
Companies - Sat, December 21, 2024 | 2:08 pm GMT+7
VAFIE seeks to promote sci-tech development, intellectual property policies
The Vietnam’s Association of Foreign Invested Enterprises (VAFIE) aims to enhance policies for the development of science, technology, and intellectual property, creating a more conducive investment environment.
Companies - Sat, December 21, 2024 | 1:59 pm GMT+7
Vietnamese dong likely to depreciate 3% in 2025: VinaCapital
The Vietnamese dong is likely to depreciate 3% in 2025 on anticipation that the US Dollar/DXY Index will finish 2025 nearly unchanged, says Michael Kokalari, chief economist at Vietnam's leading fund manager VinaCapital.
Economy - Sat, December 21, 2024 | 11:23 am GMT+7
First luxury railway journey across Vietnam features Indochine architecture
PYS Travel has launched the first luxury railway journey across Vietnam named Sjourney, marking a new milestone in the railway tourism sector.
Travel - Sat, December 21, 2024 | 10:09 am GMT+7