Former ALCII chief executive Vu Quoc Hao was charged with embezzling VND531 billion ($25.3 million) worth of State property, abusing his position and power while on duty and deliberately violating State regulations on economic management, causing serious outcomes.

Of the total funds, Hao, and ten other defendants indicted on charges of misappropriating property, were accused of taking more than VND80 billion ($3.8 million) for personal gain.

Under the alleged violations which occurred from April 2008 to March 2009, Vu Quoc Hao and Nguyen Van Tai, the former deputy general director of ALC II signed 10 contracts for financial leasing and asset purchasing and granted loans of hundreds of billions of dong to a number of companies for asset investment.

Despite ALC II not being allowed to grant credit loans it transpires the companies spent the loan money on non-fixed assets, thus retrieving the money is expected to be difficult, if not impossible.

These companies include; Quang Vinh Construction and Trade Co Ltd, Ham Rong JSC, Xuan Viet Trading and Service Co Ltd, and Dai Phu Gia company.

The court heard that Hao used his power and position to sign financial leasing contracts to draw out VND75 billion ($3.5 million) for his personal use. Hao was also accused of appropriating VND4.9 billion from a contract signed with Anh Phuong Company in southern Dong Nai Province.

ALCII is member of the State-run Viet Nam Bank for Agriculture and Rural Development located in District 5 of HCM City and Vu Quoc Hao is listed as a member of the board of directors and the general director.

The trial is expected to run until November 20. — VNS