Nine former senior executives of Vietnam Shipbuilding Industry Group (Vinashin) were sentenced to jail last Friday for their role in mismanaging one of the country's biggest state-owned corporation, Seatrade Asia online reports. Former chairman Pham Thanh Binh was sentenced by a Vietnamese court to a maximum of 20 years while the others received sentences of three to 19 years for “intentionally violating state rules on economic management with serious consequences,” reports said.
The court also ordered the defendants to pay “hundreds of billions of dong” in damages.
The failure by the senior executives in running Vinashin caused the shipbuilder to nearly collapsed under some $4.5bn of debts. Vinashin subsequently defaulted on a $600m syndicated loan to foreign lenders in December 2010, when the first repayment of $60m was due.
The court also ordered the defendants to pay “hundreds of billions of dong” in damages.
The failure by the senior executives in running Vinashin caused the shipbuilder to nearly collapsed under some $4.5bn of debts. Vinashin subsequently defaulted on a $600m syndicated loan to foreign lenders in December 2010, when the first repayment of $60m was due.