The prosecution and arrest of two former leaders of Cuu Long Pharmaceutical Joint Stock Company (DCL) related to the case took place 16 years ago and does not affect the current operations of the business.
On 9/11, the Police Investigation Agency (Ministry of Public Security) announced that they had prosecuted and detained Mr. Luong Van Hoa, former General Director of Cuu Long Pharmaceutical Joint Stock Company and former chief accountant Nguyen Van Thanh Hai on the crime of abusing positions and powers while performing official duties, according to article 356 of the Penal Code. On the same charge, former Deputy General Director Nguyen Thanh Tong was prosecuted and banned from leaving his residence.
Based on the investigation documents, the Investigation Police Agency of the Ministry of Public Security determined that the subjects at Cuu Long Pharmaceutical Joint Stock Company took advantage of their positions and powers and intentionally failed to report to the Ministry of Health and the Ministry of Financing for the execution and finalization of order contracts, withholding more than $3.8 million in rebates for purchasing raw materials originated from the State budget, causing damage to the State’s property.
Regarding this issue, the representative of Cuu Long Pharmaceutical confirmed: the case was determined to take place in 2005 – 2007, before the State Capital Investment Corporation (SCIC) offered to sell DCL shares on the stock exchange and at the time of this incident, FIT Group JSC (FIT) was not the parent company of DCL then did not own any shares in Cuu Long Pharmaceutical. Therefore, the prosecution and detention of two former leaders of Cuu Long Pharmaceutical is not related to any current members of the Board of Directors, Supervisory Board and Board of Directors, nor does it affect production and business activities, of which Cuu Long Pharmaceutical today. The production and business activities of Cuu Long Pharmaceutical are still taking place normally, according to the set plans, the company’s governance situation is stable.
In the past time, Cuu Long Pharmaceutical has worked closely with the Investigation Police Agency – the Ministry of Public Security to investigate and verify the case in order to handle the right person, the right crime, and to comply with the law, to recover and distrain thoroughly property for the State related to this case.
