Trung Nguyen Group lost nearly 52 billion VND because of corrupt officials

Continuously receiving reports from the Hanoi Branch with the content of “unsold goods and inventory”, Trung Nguyen Group Joint Stock Company (abbreviated as Trung Nguyen Group) was forced to take inventory of goods. As a result, this Group had thousands of boxes of coffee, worth nearly 52 billion VND, “magically” disappeared by the branch staff.

At the trial on July 30, the Hanoi People's Procuracy prosecuted Vu Huy Phong (born in 1970, residing on Ly Nam De Street, Cua Dong Ward, Hoan Kiem) - former Director of the Hanoi Branch, belonging to Trung Nguyen Group; Dang Vu Kien (born in 1982), residing on Khuong Trung Street, Khuong Trung Ward, Thanh Xuan District, former warehouse manager; Nguyen Hong Phong (born in 1977, residing on Nguyen Truong To Street, Truc Bach Ward, Ba Dinh District), former Head of the supermarket channel sales department for the crime of "Fraudulent appropriation of property". However, due to the absence of a number of witnesses and people with related rights and obligations, the trial was adjourned and the panel of judges has not yet set a time to reopen the trial.

Former Director of Trung Nguyen Group's Hanoi Branch - Vu Huy Phong was escorted back to prison after the trial was postponed.

According to the indictment, Trung Nguyen Group took inventory of goods at the Hanoi Branch. During the process of comparing accounting books and the actual amount of coffee in the warehouse from January 2009 to June 2012, Trung Nguyen Group discovered that there was a shortage of thousands of boxes of coffee, equivalent to 51,880 billion VND, so it submitted a request to the police to investigate to clarify how the above goods were lost.

Investigation results show that during the above mentioned period, Vu Huy Phong directed Dang Vu Kien to export goods to a Trung Nguyen coffee distributor in Hanoi, then embezzled the company's money.

Specifically, according to Trung Nguyen Group's regulations, when selling goods to distributors, the buyer must pay in advance, corresponding to the quantity of goods to be taken. On this basis, the accounting department will issue a delivery note and the branch is obliged to open the warehouse and deliver the correct quantity and type of goods stated on the note.

Although the company's regulations were very clear, Vu Huy Phong, as the Branch Director in Hanoi, still ignored them and repeatedly directed Dang Vu Kien to export goods against the rules. After each time he ordered his subordinates to export goods, Phong sent his personal driver to receive the money from the distributor. By this trick, the former Director of the Hanoi Branch of Trung Nguyen Group appropriated more than 25.6 billion VND from the "parent company".

In charge of warehouse management, Kien clearly knew that the "boss's" order was against company regulations, but out of respect, he became a very active helper for Phong. In addition to this behavior, Trung Nguyen Group also discovered a shortage of goods at the Hanoi Branch's warehouse for unknown reasons, equivalent to more than 12.9 billion VND. Therefore, according to Vietnam's leading coffee group and the authorities, Kien must be responsible for this amount.

In another development, taking advantage of his position as Head of the Hanoi Branch's Supermarket Sales Department, Nguyen Hong Phong colluded with outside parties to fake the need for coffee from several supermarkets in Hanoi to tell warehouse managers to ship the goods. Using this deceitful trick, from December 2011 to May 2012, Nguyen Hong Phong "secretly sold" hundreds of boxes of the company's coffee to pocket more than 7 billion VND.

According to Capital Security