HANOI (Reuters) – A Vietnamese court on Friday sentenced the former head of Hanoi’s governing body to five years in jail for misappropriating secret state documents and misusing assets in a case that caused more than $40 million of losses to the state budget.
In a verdict read to the court, a judge said Nguyen Duc Chung, 53, the former Hanoi People’s Committee chairman, was the main instigator in the case involving the alleged smuggling of electronic equipment through a technology company into Vietnam.
The judge said the hiding of profits amassed by the company caused around 1 trillion dong ($43.24 million) of losses to the state budget.
Reuters could not immediately reach Chung’s lawyers for comment. Chung had pleaded guilty at the start of the trial and he apologised to the Communist Party for his actions.
Three other people, including a former policeman received prison sentences of between 18 months and 4 1/2 years over the case, said the judge.
The once high-flying Chung, who had also been a former police chief of Hanoi, took up the position of chairman of Hanoi in late 2015.
During his tenure, Hanoi successfully struck a deal to host Vietnam’s first Formula 1 race, which was then cancelled following his arrest in August and due to the pandemic.
His sentencing comes as the Vietnam government has stepped up its fight against corruption, with several senior officials arrested and jailed ahead of the Communist Party’s five-yearly congress.
Government critics say the corruption crackdown is politically motivated.
(Reporting by Phuong Nguyen; Editing by Ed Davies and Angus MacSwan)
