Former IPC leader arrested for embezzlement

Te Tri Dung, former general director of HCMC-based Tan Thuan Industrial Promotion Co., Ltd (IPC), was arrested on Monday on charges of embezzlement and State asset mismanagement at the State-run company.

Former IPC leader arrested for embezzlement
Ho Thi Thanh Phuc (L), general director of South Saigon Development Corporation and Te Tri Dung, former general director of HCMC-based Tan Thuan Industrial Promotion Co., Ltd. – PHOTO: TNO

The local media reported that investigators at the HCMC Police Department searched the house and workplace of the 38-year-old Dung, both located in District 7, on Monday evening.

In October 2018, the HCMC People’s Committee suspended Dung from his post for his involvement in IPC’s irregularities.

Early last month, the city’s chairman, Nguyen Thanh Phong, told the chairman of the members’ council at IPC, as the company’s legal representative, to hold the offenders accountable, following the findings of the municipal inspectorate last October. Dung was found to have obstructed the inspection process.

The IPC chairman was tasked with determining the liability of the accused individuals and to work with the company’s Party unit to handle the matter in line with the Party’s rules.

He had to take steps to tackle its outstanding debts of roughly VND70 billion. Also, he was responsible for asking the relevant individuals and the group to reimburse interest payments totaling more than VND8 billion arising from the total value of bank loans, at some VND400 billion, taken in 2016 and 2017.

Though IPC earned profits in the two years, it still borrowed from the bank to pay into the city’s State budget. The company explained that the borrowing was needed to create a financial relationship with the lender bank, which led to the unnecessary interest payments.

The IPC chairman was also asked to resolve violations by the company’s employees in terms of compliance with State and Party regulations on overseas travels, whether for business or personal trips, which cost the State VND1.3 billion.


The former IPC leader, Dung, was found to have traveled overseas for 106 days in 2016 and 2017.

IPC had to adjust its office-for-rent work at its headquarters, in line with the guidelines of the city government. The company was ordered to work with the relevant departments and agencies to complete procedures that would allow its empty spaces to be put to full use.

Inspectors found that IPC used only a section of the headquarters, while 81 other agencies had leased the remainder of the building for their offices. The total lease revenue between 2010 and 2017 was over VND295 billion.

The company also had to make adjustments to the contractor appointment process in line with prevailing bidding regulations.

The municipal inspectorate sent three cases showing signs of legal violations at IPC. The issuance of shares to strategic shareholders at IPC’s units – South Saigon Development Corporation (Sadeco) and Hiep Phuoc Industrial Park – showed signs of violations and may have failed to guarantee their shareholders’ interests, thereby causing damages for the State.

This morning, the HCMC police also arrested Ho Thi Thanh Phuc, general director of Sadeco, on the same charges as Dung.

Born in 1981 in HCMC, Dung earned a bachelor’s degree in economics from the University of Economics HCMC and a master’s degree in business administration from Australia’s La Trobe University. SGT

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