HCMC – The HCMC People’s Court has handed down a 10-year prison term to Tat Thanh Cang, former standing deputy secretary of the HCMC Party Committee, for his involvement in violations in the sale of nine million shares of the South Saigon Development Corporation (SADECO).
SADECO ex-chairman Te Tri Dung got an 11-year jail term for violating regulations on the management and use of State assets, which caused losses and wastefulness, and a nine-year term for embezzlement, resulting in a combined jail term of 20 years, the local media reported.
Former SADECO general director Ho Thi Thanh Phuc will stay behind bars for nine years for violating regulations on the management and use of State assets, which caused losses and wastefulness, and seven years for embezzlement. In total, she must serve a prison term of 16 years.
Seventeen other defendants received two years of probation or prison sentences of up to 13 years.
Cang, who was serving as deputy secretary of the municipal Party Committee at the time, was responsible for managing the committee’s assets and would have known that the sale of SADECO’s shares needs to be in line with regulations on the State capital management and the shares must be put up for bidding.
However, Cang signed a decision approving the no-bid sale of nine million SADECO shares to Nguyen Kim Company at VND40,000 per share, causing losses of VND669 billion for the State.
As for Dung, the court concluded that he had held many meetings and signed a resolution approving the transfer of the shares to Nguyen Kim. He also directed Phuc and other subordinates to spend SADECO’s money on the illegal overseas trips of many individuals, causing losses of over VND2.1 billion for the State.
Dung and Phuc also abused their position and power to approve the allocation of SADECO’s remuneration fund, appropriating more than VND4.6 billion.
Phuc actively supported Dung in all the violations.
According to the court, Nguyen Kim Company has returned all nine million shares and interest to SADECO. Dung and his accomplices have also returned the VND4.6 billion appropriated.
The court asked Dung and the relevant defendants to return the VND1.3 billion spent on the unapproved overseas trips of SADECO’s employees.