Prosecution of 2 former General Directors of Vietnam Social Security
Mr. Le Bach Hong and Nguyen Huy Ban were accused of intentionally violating State regulations on economic management, causing a loss of 1,700 billion VND.
On June 7, the Supreme People's Procuracy issued an indictment to prosecute Mr. Le Bach Hong (former Deputy Minister of Labor, War Invalids and Social Affairs, former General Director of Vietnam Social Security) for the crime ofIntentionally violating State regulations on economic management causing serious consequences, according to Clause 3, Article 165 of the 1999 Penal Code with a penalty range of 10 to 20 years.
Four former officials of Vietnam Social Security were prosecuted on the same charges: Nguyen Huy Ban (former General Director); Tran Tien Vy (former Head of Planning and Synthesis Department); Hoang Ha (former Head of Planning and Synthesis Department, Planning and Finance Department) and Nguyen Phuoc Tuong (former Head of Planning and Finance Department).
Tran Thanh Thuy (former specialist of the Planning - Synthesis Department, Planning - Finance Department of Vietnam Social Security) was prosecuted for the crime ofLack of responsibility causes serious consequences, according to Clause 2, Article 285, Penal Code 1999.
Authorities said that Mr. Le Bach Hong and the above people are in the second phase of the investigation into the case of Vu Quoc Hao and his accomplices.
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Former Deputy Minister, former General Director of Vietnam Social Security - Le Bach Hong. |
According to the prosecution, from March 2008 to August 2009, defendant Tuong, Vy and Ha made 14 requests for Mr. Hong and Ban to lend capital from the Social Insurance Fund to the Finance Leasing Company II - ALC II (Vu Quoc Hao as General Director) and were approved.
In 2011, Vietnam Social Security lent more than the guarantee limit at ALC II with a total outstanding debt of more than VND 1,000 billion. The lending to ALC II was not determined to the right subjects, did not ensure the investment principles of the Social Security Fund, and was contrary to the Law on Social Security... Because according to regulations, Vietnam Social Security is only allowed to lend capital to state-owned commercial banks.
After paying 200 billion VND, ALC II did not pay monthly interest and principal when due. In 2015, when checking and comparing the previous working minutes of debt collection of Vietnam Social Security at ALC II, the State Audit found that the debt collection of both principal and interest had not progressed.
At the end of December 2015, Vietnam Social Security had not yet recovered all principal and interest of ALC II Company with the amount of 769 billion VND in overdue capital and 735 billion VND in interest.
On July 31, 2018, the Ho Chi Minh City People's Court declared ALC II bankrupt. To date, ALC owes more than VND 1,700 billion in principal and interest and is unable to pay.
Mr. Le Bach Hong held the position of Deputy Minister of Labor, War Invalids and Social Affairs from 2005 to 2008. At the end of 2008, the Prime Minister decided to let him resign from the position of Deputy Minister of this Ministry to hold the position of Deputy Minister and General Director of Vietnam Social Security. He received the decision to retire in 2014.
