Vietnam jails ex-Saigon jewelry CEO, 15 others in gold case

A Vietnam court convicted a former top-ranking gold executive and 15 others in a case that spotlighted shortcomings in the state’s monopoly on gold trading, which is now being scrapped in favor of a more market-oriented approach.

Le Thuy Hang, the ex-CEO of Saigon Jewelry Co., was sentenced to 25 years in prison for embezzlement and the abuse of power for taking advantage of government policies related to the precious metal, VnExpress and other media reported, citing court proceedings. SJC, as the firm is known, was the country’s only legal producer of gold bars at the time.

The report said Hang was found to be the mastermind of a scheme which prosecutors had described as involving the reprocessing of gold bars, the production of rings, and abuse of a central bank program to stabilize prices of the precious metal. The 16 defendants were accused of pocketing the price difference from diverting state-supplied bullion to private buyers at higher rates, causing losses of over 107 billion dong ($4 million) to SJC, state-run Nguoi Lao Dong reported earlier.

The convictions come a day after the central bank released draft regulations for a new market structure that will see the state loosen its grip on trading of the precious metal. The reforms are aimed at ending distortions that left local gold prices trading at a significant premium to offshore levels, leading to smuggling and pressure on the dong.

The case also comes amid a multi-year anti-corruption crackdown that has ensnared hundreds of officials and executives, including property tycoon Truong My Lan, who has been handed a death sentence. The so-called “blazing furnace” campaign has also led to the resignation of two former presidents and three deputy prime ministers.

The defendants are being forced to compensate SJC for the losses, including Hang having to pay more than 14 billion dong to the company and over 73 billion dong to the government, according to various state media. The defendants must also return gold which was illegally processed into bars and rings.

It was not immediately clear if those convicted will appeal the convictions or sentences.

(By Linh Vu Nguyen and Nguyen Xuan Quynh)