Former board chair ordered to compensate 2b dong in losses

The board of directors of Thien Huong Food Joint Stock Co has demanded the former chair Thien Huong, Pham Xuan Dung, and general director Nguyen Van Ha to compensate four billion dong to the company after running up heavy losses in the billions of dong in recent years.
Thien Huong Food Joint Stock Co was equitised from the former state-owned Thien Huong SOE in 2001. In that time, it continuously traded at a loss and is now heavily indebted and the living standards of its nearly 2,000 workers grew steadily worse. All plans to widen the business scale of Thien Huong Co failed including Dung’s decisions to import billions dong worth of equipment. Following the poor performance of the company, Dung left without a word and formed his own company named Pham Asset which produces the same products as Thien Huong Co.
Thien Huong’s board of directors has called on Dung to repair the damages caused many times but received no reply so they decided to sack Dung and demand he compensate the company two billion dong. The board said the jointly responsible general director Nguyen Van Ha should also compensate another two billion dong.
Since the ultimatum was given, Ha has already paid all the money while Dung reportedly denied any culpability. The Thien Huong board then froze Dung’s shares in Thien Huong.

 

Category: Business