La Nga sugar plant chairman burnt by securities

Friday, May 2, 2008
Shareholders of the Dong Nai-based La Nga Sugar Company on April 29 signed a petition which was filed with the Ministry of Agriculture and Rural Development, the Steering Committee on Fighting Corruption, and the Ministry of Finance to report about illegal activities of Pham Nhu Hoa, Chairman of the La Nga Sugar Company.

The shareholders said that as the Chairman of the Management Board of La Nga Sugar Company, Hoa used VND16.84bil of the company to play the stock market. However, as the market has been falling, Hoa asked for a delay to pay his debts, promising to pay debts by the end of 2008.

It is now the time for La Nga Sugar Company to organise the 2008 annual shareholders’ meeting. However, the meeting has been cancelled due to the scandal.

The stock trade affair by the chairman of La Nga Sugar Company was exposed when the company on April 9 sent a letter to its shareholders to attend the 2008 annual shareholders’ meeting, expected to take place on April 22. However, several days later, Hoa released a notice on postponing the meeting. A lot of shareholders demanded an explanation from the company and they did not receive legitimate reasons.

On April 18, the company’s management board organised a meeting during which participants heard Hoa admit using that sum of money to purchase stocks in his name.

Le Tai Anh, Chief Accountant of La Nga Sugar Company, said that Hoa has violated the current regulations in using the company’s money for private business. However, he said that his behaviour should be sympathised with.

However, the company’s shareholders do not agree with Anh, saying that Hoa’s behaviour violates the current financial laws and deceived shareholders. The shareholders have asked to know who lent a hand to Hoa in the stock trade deal.

Moreover, the shareholders also said that they had heard about many dubious affairs in the company. For example, the La Nga Company has been renting a confectionary production line to the Northern Food Corporation at VND230mil a year. However, it remains unclear how the money from the rent has been used. (Tuoi tre)