HA NOI (Biz Hub) – HCM City's investigative police have arrested Nguyen Huu Loc, 55, for seriously violating the laws on economic management, Lao Dong newspaper reports.

According to investigators, Loc was chairman of Vietnam National Seaproducts Corporation, Bien Dong Seafood Company and Seaproducts Mechanical Shareholdings Company (Seameco) and Cuu Long Aquafeed Joint Stock Company. He was also a member of the managing board of Bien Tay Seafood Company.

Initial reports claim that when Loc was chairman of Bien Dong Seafood Company, he caused losses of more than VND150 billion (US$7.1 million).

It is further claimed that Loc took advantage of his position and illegally sold fish feed. He is then said to have transferred the money from Seameco to Cuu Long Aquafeed without reporting to the managing board.

According to the accounting file, until 2011 Cuu Long Aquafeed still owed a debt of VND135 billion($6.4million) but the investigative team calculated that the total of debt should be nearly VND250 billion ($11.9million).

Cuu Long Aquafeed has ceased operating for a year, waiting for bankruptcy proceedings to begin. It cannot pay the debt.

In addition, Bien Dong Seafood Company also lent Seameco VND21 billion ($1 million) using illegal procedures.

Furthermore, Loc and his assistants are said to have reduced the ratio of State investment in Seameco from 59 to 46 per cent without reporting to the Ministry of Agriculture and Rural Development. This means the State is no longer in charge of the company, leading to other illegal activities.

Police also placed Tran Vu Dung, director of Bien Tay Seafood Company under arrest.— VNS