Authorities raided Bao Long Group.
At over 12:30 PM on June 17th, the Hanoi Security Investigation Agency completed the search of the former headquarters of the Bao Long pharmaceutical group in Son Tay town. Many seized documents were transferred to the agency's vehicle.
The search began at 11:00 AM. Numerous local police officers were deployed to provide remote security while investigators executed the search warrant. After approximately 90 minutes, authorities announced they had sealed and seized several documents to aid in the investigation into allegations that Mr. Nguyen Huu Khai (Chairman of Bao Long Group) illegally used assets, under Article 142 of the Penal Code.
 The police executed the search warrant in approximately 90 minutes. |
Witnessing the search were Mr. Khai's son, his brother, and his younger brother. Speaking to reporters, Nguyen Huu Truong, Mr. Khai's son, said that on the afternoon of June 15th, when Hanoi police arrived at the group's new headquarters in Ho Chi Minh City to execute the arrest warrant for Mr. Khai, everyone was "shocked." He believes that the dispute in the business acquisition between Bao Long Group and Bao Son Group has been "criminalized." The arrest of Mr. Khai has significantly impacted this reputable pharmaceutical company, which has built its name over more than 20 years.
"The assets, worth over 200 billion VND, have been the subject of dispute for several years, and no agency has yet determined whether they belong to Bao Son or Bao Long," he said, adding that numerous task forces from the Ministry of Health, the Inspectorate, and other agencies have come to clarify the matter, but no final conclusion has been reached. Both sides also previously sued in court for arbitration, but later withdrew their cases.
 The Bao Long signboard in Son Tay town. Photo: Ha Anh |
Mr. Khai's arrest is believed to have stemmed from the Bao Long Group selling assets in Son Tay town to the Bao Son Group. Before the lawsuit, Mr. Khai and Mr. Nguyen Truong Son (Chairman of Bao Son Group) had known each other for 20 years, after Mr. Son was cured of hyperlipidemia by Mr. Khai.
By 2011, the two had partnered in business. According to Bao Son, the company transferred approximately 227 billion VND to Mr. Khai to acquire 100% of the shares of the group's companies, additional capital contributions, and all assets, land use rights, and product brand copyrights.
However, a dispute arose between the two parties when Mr. Khai claimed that Mr. Bao Son had not fulfilled his contractual obligations and had not paid 125 billion VND. Meanwhile, Bao Son accused Mr. Khai of still owing hundreds of billions of VND to individuals and of illegally using assets already sold in Son Tay commune, Hanoi.
Currently, Bao Long Group has moved its headquarters to Ho Chi Minh City. On the afternoon of June 17th, according to observations by reporters, the group's activities were still taking place there, with many large signs still displayed.
According to VnExpress - TH
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