The case has spanned several years. The Military Court of Military Zone 9 in Can Tho was scheduled to hear the case on 10/9, but the trial was postponed due to one defendant being injured in an accident.

In this case, Vo Thanh Tien and Ngo Van Phang (both former chairmen of Cadovimex) are accused of being the masterminds. Their former subordinates, including Tang Gia Phong, Pham Thi Huong, Tran Minh Hoang, Tran Hoang Giang, Vo Hung Cuong, and Duong Van Tuong (general director, deputy general director, chief accountant, and accountant, respectively) are accused of carrying out the scheme.

From seafood giant to debt-ridden

Cadovimex, based in Ca Mau, operates in seafood processing and import-export. It was once among Vietnam's top 10 exporters. Before 2011, the company's revenue reached trillions of VND annually, and it was considered a flagship of the Mekong Delta seafood industry. After 2011, the company fell into financial difficulty, accumulating debt and leading to fraudulent activities.

The prosecution alleges that from October 2008 to the end of 2015, for personal gain, Vo Thanh Tien and Ngo Van Phang directed the board of directors, including Pham Thi Huong, Tang Gia Phong, Tran Minh Hoang, Tran Hoang Giang, Duong Ngoc Thoi, and Vo Hung Cuong, and the accounting department (Duong Ngoc Thoi, Vo Hung Cuong, and Duong Van Tuong) to create numerous falsified documents to secure loans.

Their tactics included using duplicate and photocopied invoices, creating unrealistic business plans, falsifying documents for raw material purchases, and using the same assets as collateral multiple times to borrow money for debt repayment and refinancing.

The defendants at the court hearing in June. Photo: Nhung Nguyen

The defendants at the court hearing in June. Photo: Nhung Nguyen

Cadovimex had a credit relationship with the Vietnam Development Bank, Minh Hai Branch (VDB Minh Hai) since 2005. By the end of 2009, the principal debt was nearly 165 billion VND.

When VDB introduced a policy to support export businesses, Tien and Phang directed the board of directors (Pham Thi Huong, Tang Gia Phong, and Tran Minh Hoang) to exploit this policy, instructing Duong Ngoc Thoi, Vo Hung Cuong, and Duong Van Tuong to create fraudulent documents to sign 23 export credit contracts, misappropriating funds to repay debts to other banks.

Loan documents showed Cadovimex making profits when it was actually incurring losses. Most VAT invoices were photocopies with certified signatures. Many invoices were used multiple times, with a total duplicated value of over 76 billion VND. The company also used invoices already disbursed at other banks to secure further loans from VDB Minh Hai, totaling over 17.5 billion VND.

Similarly, at Agribank Ca Mau, on 6/6/2011, Cadovimex's general director, Tang Gia Phong, and Tran Huu Cuong (deputy director of Agribank Ca Mau) signed a debt acknowledgment along with an invoice list and payment orders. Cadovimex borrowed 5.1 billion VND supposedly for "raw material purchases," but the money was circulated and used to repay existing debts.

Authorities determined that Cadovimex misappropriated over 1,000 billion VND from MB Bank Cho Lon Branch (TP HCM), VDB Minh Hai, and Agribank Ca Mau.

Of this, over 202 billion VND was misappropriated from MB Cho Lon but has been fully repaid; the company still owes this bank over 2.5 million USD.

From VDB Minh Hai, the company borrowed over 303 billion VND and misappropriated over 80 billion VND. From Agribank Ca Mau, the company borrowed over 500 billion VND and misappropriated over 3 billion VND.

Numerous bank leaders and officials face legal action

At VDB Minh Hai, director Trinh Tuan Man, deputy director Vu Van Hoan, department head Huynh Quang Xuan, deputy head Phan Van Toan, and officer Tran Ky Oanh are accused of granting loans without proper financial assessment and disbursing funds in violation of regulations.

Specifically, Man approved 21 credit contracts, disbursing over 315 billion VND, of which Cadovimex misused over 275 billion VND.

The VDB Minh Hai officials and employees involved are Trinh Tuan Man (director), Vu Van Hoan (deputy director), Huynh Quang Xuan and Phan Van Toan (head and deputy head of export credit), and Tran Ky Oanh (corporate credit officer).

These individuals are accused of failing to conduct proper financial assessments and review the business plans of Cadovimex before granting loans. They also disbursed funds before the company provided complete supporting documents or when the documents provided were falsified, and they disbursed funds into the company's account against VDB regulations.

They also failed to inspect and monitor the use of funds, the progress of raw material procurement, inventory, and the implementation of export contracts, allowing the company to misuse funds for extended periods, leading to its inability to repay debts.

Man, as the legally responsible person and general director of VDB for all export credit activities at VDB Minh Hai, approved 21 credit contracts and disbursed over 315 billion VND to Cadovimex, which misused over 275 billion VND.

At Agribank Ca Mau, former deputy director Tran Huu Cuong assessed that Cadovimex did not meet the lending criteria but did not require the credit department to clarify or provide additional information as required. Instead, he voted to approve credit for the company. He signed off on 79 debt acknowledgments, disbursing over 394 billion VND, of which Cadovimex misused over 368 billion VND.

In 2018, Ca Mau Provincial Police initiated the case and then transferred it to the Ministry of National Defense's Criminal Investigation Agency (related to violations at MB Bank Cho Lon).

In November 2023, the Ministry of National Defense's Criminal Investigation Agency prosecuted Duong Ngoc Thoi, Tran Hoang Giang, Tran Minh Hoang, Pham Thi Huong, and Tang Gia Phong for fraud and asset appropriation. Three months later, Ngo Van Phang, Vo Hung Cuong, and Duong Van Tuong were prosecuted for the same charges.

Simultaneously, 13 leaders and officials from MB Cho Lon, VDB Minh Hai, and Agribank Ca Mau were prosecuted for violating lending regulations in the operations of credit institutions.

However, suspects Nguyen Huu Cuong (former director of MB Bank Cho Lon) and Le Kim Hung (former officer of MB Bank Cho Lon) have absconded, and the Criminal Investigation Agency continues to pursue them.

At the end of October 2024, the Central Military Procuracy indicted Tien, Phang, and seven others for fraud and asset appropriation under Article 139 of the Penal Code. Eleven directors, deputy directors, and officials from three banks - VDB Minh Hai, MB Cho Lon, and Agribank Ca Mau - were prosecuted for violating lending regulations in the operations of credit institutions under Article 179 of the Penal Code and for negligence causing serious consequences under Article 285 of the Penal Code.

In July, the Military Court of Military Zone 9 heard the case over several days, then returned the file for further investigation. The judges requested clarification on whether MB Cho Lon was a victim in the case and the amount of interest Cadovimex had paid to this bank. The court also requested clarification on the amount misappropriated by each defendant in each stage.

After further investigation, the procuracy maintained its indictment.

An Binh