Huyen has been arrested for violating accounting regulations causing serious consequences and regulations governing resource exploitation, and causing environmental pollution, according to a statement the Ministry of Public Security put out on Tuesday.
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Dao Huu Huyen, chairman of Duc Giang Chemicals Group, before being arrested. Photo courtesy of the Ministry of Public Security |
His son, Dao Huu Duy Anh, vice chairman of the company, was arrested for violating accounting regulations causing serious consequences.
Pham Van Hung, CEO of Duc Giang Lao Cai Chemicals in the northern province of Lao Cai, was arrested for allegedly violating accounting regulations causing serious consequences and causing environmental pollution.
Three Duc Giang Chemicals Group executives face charges of violating regulations on resource exploitation, and eight others of assisting Anh in his crimes. Four have been arrested, while the other seven are banned from leaving their residences.
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Dao Huu Duy Anh, vice chairman of Duc Giang Chemicals Group, before being arrested. Photo courtesy of the Ministry of Public Security |
The police said Duc Giang Chemicals Group committed violations by illegally dumping millions of tons of waste on dozens of hectares in Tang Loong Industrial Park in Lao Cai Province, causing pollution and severely affecting the lives of local residents.
The company also illegally mined hundreds of thousands of tons of apatite ore valued at hundreds of billions of dong (VND100 billion = US$3.8 million), the police said.
It omitted transactions from its books and concealed revenues, causing tax losses to the government of tens of billions of dong, they said, adding: “These violations at Duc Giang Chemicals Group occurred over a long period.”
Huyen’s family owns a 40.74% stake in Duc Giang, which was established in 1963 as a government company, and was privatized in 2003. Its produces phosphoric acid, yellow phosphorus, fertilizers, and detergents, and is considered one of the leading enterprises in phosphorus production and basic chemicals.
Duc Giang’s share has plummeted 15% in three days, closing at VND68,800 ($2.62) Tuesday afternoon.
