Drug firm executives face charges
Source: 24-JUL-2008 Intellasia | Thanhniennews
Jul 24, 2008 - 7:00:00 AM HCM City police Monday said they planned to press charges against current and former executives of a drug company accused of faking invoices to channel money into a slush fund.

Central Pharmaceutical Joint-Stock Co 2 (Phytopharma) former CEO Hoang The Tan, current deputy CEO Le Tat Tuan, export-import division head Nguyen Thi Thanh Phuong and her deputy Bao Loc could face charges of "deliberately violating state economic regulations causing dire consequences," HCM City Economic Management Investigation police said Monday.

Tan is undergoing cancer treatment at HCM City's Cho Ray Hospital.

Tuan has already been arrested while Phuong and Loc will be placed under house arrest, police said.

From 2003 to 2007, Tan instructed his subordinates to work with three private firms to make bogus invoices to authorise spending of around dong 2.1 billion (US$126,400).

Phytopharma and the three companies allegedly made invoices for non-existent or inflated transport fees, police said.

The illicit money was earmarked for buying Tet gifts and entertaining guests, police said.

Phytopharma also used its slush fund to offer kickbacks to customs officers.

Police have not taken action against the customs officers.

Two directors and one deputy director of the three private firms that colluded with Phytopharma in the invoice scam also face charges of "circulating forged documents," police said.