Hanoi(VNA) - Le Bach Hong, former Deputy Minister of Labour, Invalids and Social Affairsand former General Director of Vietnam Social Security (VSS), was sentenced tosix years in prison by the Hanoi People’s Court on September 25.

Hong was charged for “intentionallyviolating State regulations on economic management, leading to seriousconsequences”, which caused a loss of over 434 billion VND (18.65 million USD)to the VSS.

Nguyen Huy Ban, former GeneralDirector of the VSS, and Nguyen Phuoc Tuong, former head of the Planning -Finance Department (now the Planning – Investment Department) and formerchief accountant of the VSS, were handed 14 years in prison eachon similar charges.

Hoang Ha and Tran Tien Vy,who are former heads of the general planning division under the Planning -Finance Department, will serve seven and three years in prison, respectively.

Tran Thanh Thuy, aformer specialist and then deputy head of the general planning division underthe Planning - Finance Department, was sentenced to two years in prison for"lack of responsibility, causing serious consequences", but she washanded a suspended sentence.

The six defendantscaused losses of almost 1.7 trillion VND (73 million USD) to the VSS.

They havebeen ordered to pay 835 billion VND (36 million USD) to the VSS,including 150 billion VND from Hong, 292 billion VND from Ban, 292 billionVND from Tuong, 60 billion VND from Ha and 40 billion VND from Vy.

According tothe judgment, Hong, as VSS general director, signed and directed theexecution of three loan contracts for Agribank FinancialLeasing Company No 2 (ALC II), which it is now unable torecover, causing State economic losses of more than 434 billion VND (18.65million USD).

Agribank was asked to pay compensationof more than 862 billion VND (37 million USD) for the VSS. 

Meanwhile, Ban isaccused of signing and directing the execution of 11 other loan contracts worth630 billion VND (27 million USD) for ALC II, which was not in line with theinvestment principles of the VSS fund, causing State economic losses of over1.26 trillion VND (54.3 million USD).

The other fourdefendants followed orders from Hong and Ban to sign contracts with ALCII, which violated the Social Security Law.

The state securitiesfund is made up of Government assistance and contributionsfrom employers, employees, the self-employed and people with insurance tobe used for the payment of social security benefits as stipulated inthe law.

The law stipulates theVSS is not a finance or credit organisation and is therefore notauthorised to offer loans./.