What tactics Kien used to do illegal business?

VietNamNet Bridge – The three companies set up by Nguyen Duc Kien do not have the functions relating to finance investments, but the legal status of the companies could still be exploited by Kien to issue bonds and making finance investments.

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Nguyen Duc Kien

According to the Ministry of Public Security, Nguyen Duc Kien has been arrested for his illegal business activities relating to three companies, including the B&B Trade and Investment Joint stock Company, the ACB Hanoi Investment Joint Stock Company and the A Chau Finance Investment Company Ltd.

The three companies were established by Nguyen Duc Kien which had huge registered chartered capital.

2300 billion dong for 3 companies

The business certificate granted by the Hanoi Planning and Investment Department showed that B&B, headquartered at No. 63 Luong Su C in Hanoi, has the chartered capital of 1500 billion dong.

B&B registered to operate in the fields of advertisement and market survey, gold and gemstone trade, civil and industrial construction. The company has three founding shareholders, including Nguyen Thuy Huong, Nguyen Duc Kien and Dang Ngoc Lan. Kien, who contributes 66 percent of the total capital, was the chair of the board of directors.

On March 21, 2008, the A Chau Finance Investment Company was established, capitalized at 500 billion dong. The two capital contributors were the familiar names, Nguyen Duc Kien, who contributed 99 percent of the total capital, and Nguyen Thuy Huong.

The company registered its operation in 10 business fields, including hotel, golf course development, transport infrastructure development, jewelry gold import-export and foreign exchange.

On November 10, 2006, Kien set up the ACB Hanoi Investment Joint Stock Company with the chartered capital of 300 billion dong, contributed by Nguyen Duc Kien, Huynh Van Son and Tran Ngoc Thanh. Kien, who contributed 70 percent of the total capital, held the post of the chair of the board of directors, while Thanh as the general director.

As such, the total registered capital of the three companies is 2300 billion dong which had been all put under the instruction of Kien, according to Tuoi tre.

Drawing up bogus business plans to borrow money

With the huge registered chartered capital and his personal prestige in the finance and banking sector, Kien successfully polished the images of the companies, describing them as the powerful and influential companies in their business fields.

A lot of huge business plans invested by the companies have been made public. However, the investigation has suspected that these are just the bogus business plans drawn up to obtain the confidence of the banks and clients which invested in Kien’s companies and let Kien make illegal investment activities.

After building up the good images for the companies he brought into life, in 2008 and 2010, Kien many times issued corporate bonds, sold to banks to get hundreds of billions of dong. The sums of money were then given by Kien to his relatives who used the money to buy shares of other banks.

After that Kien used the shares of banks as the collaterals to borrow money from the banks, to which Kien sold bonds to pay bank debts and use for other purposes.

The total sum of money Kien has borrowed from banks in this way may reach trillions of dong.

Dan tri newspaper has reported that the capitalization value of the stock market has lost 5.6 billion dollars three days after the Kien arrest.

Meanwhile, the commercial banks, which are thought to be the “backdoor” of Kien, have denied their business relations and the influences of Kien to them. Petrotimes has also reported that Kien has been arrested for his personal activities which in no way relate to the operation of commercial banks.

Compiled by C. V