On the afternoon of 1/7, after eight days of trial and deliberation, the Hanoi People's Court announced its verdicts for 17 defendants in an embezzlement case at Nam Trieu Company. This state-owned enterprise operates under the Security Industry Department, Ministry of Public Security. Nguyen Van Hung, 55, former chairman of Nam Trieu, received a combined sentence of 29 years in prison. He was sentenced to 20 years for embezzlement and nine years for abuse of power while performing official duties. This sentence exceeds the prosecutor's recommendation of 28 years.

Several other key figures also received prison terms. Nguyen Ngoc Tinh, the company cashier, was sentenced to eight years for the same two offenses as Hung. Nguyen Duc Thang, Deputy General Director of Nam Trieu, received three years for abuse of power while performing official duties. Le Tien Quy, 48, former director of X30 Enterprise, a subsidiary of Nam Trieu, was sentenced to 15 years for embezzlement. The remaining 13 defendants, including subordinates of Hung and Quy, and several business owners, faced charges related to either embezzlement or abuse of power, with sentences ranging from three-year suspended sentences to seven years in prison.

Defendants Quy, Thang, Hung, and Tinh (from left to right) hear their sentences on the afternoon of 1/7. *Photo: Danh Lam*

According to the verdict, the defendants' actions were serious, causing substantial damage and harming the reputation of state agencies. Consequently, strict penalties were deemed necessary as a deterrent. Notably, Hung was the only defendant not granted leniency for sincere remorse, a factor extended to all other accused individuals.

Regarding civil liability, the court determined the total misappropriated amount was 23,8 billion VND. Of this, 5,6 billion VND resulted from abuse of power, which has been fully recovered. The remaining damage of over 18 billion VND stemmed from embezzlement. Hung was ordered to repay 6,8 billion VND, and Quy 11,8 billion VND.

The embezzlement scheme began during Hung's tenure as director of X30 Enterprise. He was accused of using various schemes to inflate the value of contracts for manufacturing public security equipment, such as gun racks, file cabinets, and door handles, to misappropriate funds. After his appointment as General Director of Nam Trieu, Hung continued this practice, extending it to contracts for manufacturing interrogation chairs, mobile barriers, and other specialized equipment.

Even after he no longer directly managed X30, Hung instructed Quy to inflate production costs by 3-4 times for personal gain. The indictment revealed Hung was aware that X30 lacked the necessary machinery and personnel for production, necessitating outsourcing to external units. These companies were then compelled to return the inflated difference, totaling over 18 billion VND. Additionally, Nam Trieu generated income from land leases and the liquidation of steel plates and aluminum used for vehicle license plates, but these revenues were not recorded in the accounting system. This accounting omission caused a further loss of 4,4 billion VND to the state, bringing the total damage in the case to 23,8 billion VND.

During the trial, Hung's subordinates testified they acted under his direction. One subordinate even claimed they had to travel from TP HCM to Hanoi to share embezzled money with Hung, despite being scheduled for liver tumor surgery. Hung, however, denied all allegations, asserting his subordinates were responsible and were "blaming everything on him."

Thanh Lam