Wanted Vinalines Shipping Executive Arrested

The former chairman of Vietnam state shipping company, Vinalines, has been arrested in an unidentified South East Asian country with the assistance of Interpol for alleged economic crimes. He has been extradited back to Vietnam.

Duong Chi Dung led Vietnam National Shipping Lines (Vinalines) from 2005 until he disappeared in May 2012. Hit by mismanagement and fraud claims, the firm has built up debts of US$2 billion.

Mr. Dung is accused of intentionally violating state regulations on economic management, causing serious consequences, reports BBC News.

Now, a total of 7 Vinalines executives have been arrested this year. All of them are accused of causing losses to the company by purchasing old foreign ships that required costly maintenance. The company also suffered losses over irregular expenses in its port project.

Vinalines is one of a dozen state corporations set up to drive Vietnam’s struggling economy. However, most of them are in large amounts of debt. The investigation into Vinalines came after another state-owned company, Vietnam Shipbuilding Industry Group (Vinashin), ran up a debt of US$4.5 billion due to rapid expansion.

The government has long been criticized for mismanagement of state companies and relaxed anti-corruption efforts. This arrest may prove as an example.