In an indictment made public on November 21, the Supreme People’s Procuracy of Vietnam accused Dung of fraudulent appropriation of assets, marking a significant development in the ongoing saga surrounding the financial turmoil of Tan Hoang Minh Group.

The troubles for the Vietnamese company began in June 2021 when it found itself burdened with a substantial debt load, stalled projects, and the adverse impacts of the Covid-19 pandemic. Its debt amounted to an astonishing VND18.5 trillion.

By January 2022, its total debt had surged to nearly VND20 trillion, excluding additional liabilities stemming from eight bond issues in 2021. In an effort to address pressing financial obligations, Dung instructed subordinates to initiate separate corporate bond issues to raise capital.

In the course of implementing this plan, Dung and his associates opted to have Tan Hoang Minh’s subsidiary companies—Viet Star Real Estate Investment Company Limited, Soleil Investment and Hotel Services Joint Stock Company, and Winter Palace JSC—individually issue bonds, ultimately raising about VND14 trillion.

However, suspicions arose that the funds raised were not being utilized for the purposes stated in the bond sale documents, leading to allegations of misappropriation.

A total of 15 individuals have been implicated in the case, with Do Anh Dung at the center of the scandal. The prosecution alleges that these individuals collectively embezzled VND8,643 billion. Notably, the accused have already surrendered this amount for restitution to the affected parties.

Source: Saigon Times