former banking chief executive Vu Quoc Hao.

HCM CITY (Biz Hub)— The People's Court of HCM City yesterday proposed the death sentence for, who has been charged with embezzling VND531 billion (US$25.3 million) worth of State property.

Hao, 58, former director general of Agribank Financial Leasing Company No 2 (ALCII), has been accused of abusing his position by deliberately violating State regulations on economic management, causing serious consequences.

The company's deputy general director, Nguyen Van Tai, yesterday also faced 18-20 years in jail on similar charges.

Hao and 10 other defendants have been charged on the ground of misappropriating State property - and on using more than VND80 billion ($3.8 million) for personal gain.

As part of the alleged violations, said to have taken place from April 2008 to March 2009, Vu Quoc Hao and Nguyen Van Tai, 54, are alleged to have signed 10 contracts for financial leasing and asset purchasing and granted loans worth hundreds of billions of dong to a number of companies for asset investment.

Despite ALC II not being allowed to grant credit loans, it appears the companies spent the loan money on non-fixed assets. This will make retrieval of the money difficult, if not impossible.

Dang Van Hai, chairman of management board of of Quang Vinh Construction and Trade.— File Photos

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 withdraw VND75 billion ($3.5 million) for his personal use.

Prosecutors yesterday also proposed the death sentence for Dang Van Hai, 56, chairman of management board of of Quang Vinh Construction and Trade, for embezzling assets, trade fraud and deliberately violating State regulations on economic management, causing serious outcomes.

All defendants involved in the case have been asked to pay back VND386.9 billion to ACLII. Vu Quoc Hao was asked to repay VND83.85 billion.

ALCII is member of the State-run Viet Nam Bank for Agriculture and Rural Development located in District 5 in HCM City.

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