Lease Team

Don’t try fiddling leases in Vietnam

30/11/2015

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In Vietnam, the HCM City People's Court has handed down death penalties to two former executives, one a leasing executive, for embezzling the equivalent of approximately $5.2 million and abuse of power while running state leasing companies.

Mr Hao, former general director of the Finance Leasing Company No 2 (ALC II), a subsidiary of the State-owned Agribank, was sentenced to death for embezzling $3.3 million equivalent from the company and 20 years imprisonment for “intentionally violating State regulations on economic management, causing serious consequences.” Ditto Mr Hai,, a former chairman of Quang Vinh Construction and Trading Co. Ltd., because according to the court’s verdict, in 2009 Hao colluded with Hai to sign blank financial leasing contracts to “lend” the embezzled amounts from state to the construction company.

In fact, Hao pocketed $3.3 million, and Hai pocketed $2 million. In many western countries these amounts would look like chickenfeed, and anyway leasing scams are seen as a victimless crime, money sucked from a bank that’s got lots more where that came from, or from foolish rich individuals who should have known better. But this story from Ho Chi Minh City is a glimpse of the other side of the coin, where money matters.



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