X Close

Regional

Published: Monday December 16, 2013 MYT 9:05:00 PM
Updated: Monday December 16, 2013 MYT 9:08:58 PM

Vietnam shipping execs given death penalty for embezzlement

HANOI, Dec 16, 2013 (AFP) - Vietnam on Monday sentenced two former top executives at scandal-hit national shipping company Vinalines to death for embezzlement as authorities try to allay rising public anger over corruption.

State-owned Vinalines nearly collapsed under some $3 billion of debt, according to official media, in one of several high profile scandals at large state-run companies which are a pillar of the economy.

Former Vinalines chairman Duong Chi Dung, who fled the country but was later apprehended, and the group's chief executive Mai Van Phuc were given the death penalty Monday after a three-and-half day trial.

"Dung's behaviour caused especially serious consequences," said court president Ngo Thi Anh.
Dung, 56, fled after the scandal broke in May 2012 when Vinalines defaulted on loans worth more than $1.1 billion.

He was arrested in September last year in neighbouring Cambodia after three months on the run.

The death sentences relate to the chairman and CEO's role in the procurement of an old, broken Japanese floating dock which then racked up enormous repair and maintenance bills.

"Going on the run showed that he (Dung) wanted to escape from his responsibilities," the court president said, adding that he was the main driver of the embezzlement scheme which was estimated to involve more than $1.5 million.

"All the defendants were (communist) party members but became rotten in their nature (and) need to be seriously punished before law," Ngo Thi Anh added.

Eight other defendants, all officials at Vinalines or other state-owned entities, were given between four and 22 years in jail on charges of defying state regulations and embezzlement.

"I did not take any money. I have been wrongly charged," Dung told the court.

He did however, accept some responsibility for the Vinalines debt scandal, and apologised to "the party, state, national assembly, government, people and Vinalines employees".

The trial follows the sentencing last year of nine former top executives at scandal-tainted state shipbuilder Vinashin, who were given lengthy jail terms on similar charges.

Concerns over state-owned firms were first triggered by Vinashin's near-collapse in 2010 under billions of dollars of debt.

Some of its loss-making sea transport projects were transferred to Vinalines, though experts warned the shipping company was ill-prepared to manage them.

Vietnam is ranked as one of the world's most corrupt nations and graft is a top concern for many ordinary people.

Corruption, mismanagement and huge debts at state-run companies are seen as fuelling the country's economic woes.

Last month a former banker and his business associate at a large state bank were sentenced to death for embezzling $25 million.

Vietnam does not disclose the number of executions it carries out each year, but rights group Amnesty International recorded five in 2011 and 23 new sentences handed out that year, mainly to drug traffickers.

Murder, rape and some serious financial crimes can also carry the death penalty.

Tags / Keywords: Vietnam, death sentence, national shipping company, Vinalines, embezzlement, corruption

advertisement

  1. Police: Karpal died on the spot from impact of crash
  2. Karpal dies: Highly emotional family members arrive at Kampar hospital mortuary
  3. Shocked Malaysians pay Twitter tribute to Karpal Singh
  4. Karpal Singh dies in car accident
  5. Four more sea turtles found killed
  6. Johor man first person in Asia to succumb to MERS
  7. High time for the leaders to act
  8. India's highest court recognises transgenders as 'third gender'
  9. MH370 search: Remark on solving mystery in one second illogical, says Najib
  10. Crane falls off 11-storey building, killing operator

advertisement

advertisement