The former CEO of Hoa Sen Group (HSG) has sued the company for slander after the corporation accused him of dubious business practices.
Former HSG CEO, Pham Van Trung is currently CEO of the Nam Kim Steel Company officially filed a lawsuit against HSG at Di An Town’s People's Court in Binh Duong Province on April 16. He also requested a public apology from the company.
In the complaint, Trung stated that in April 2011, he was appointed CEO of HSG due to his excellent achievements in boosting company profits and revenues. Trung cited a letter to shareholder issued by HSG Chairman Le Phuoc Vu in which he wrote, "Mr. Pham Van Trung is an honest, professional leader that has created a consensus around his appointment this position."
But after just 18 days in office, Trung resigned for personal issues. In March, Vu announced to the press that the former CEO was dismissed for a lack of transparency in his work. Trung was accused of raising transport fees from 10-30% and receiving illegal kickbacks from HSG supply companies.
To shore up the accusation, on April 10, 2012, HSG revealed shipping fees data to the State Securities Commission during the time Trung was in position and after he was dismissed. Vu was quoted in the evidence as saying, "Trung used his position for personal gain, causing heavy damage to the company."
The former CEO countered that the numbers prove nothing since he was not the one who directly signed the transport contracts.
The People's Court of Di An Town said on April 17 that it had received Trung's complaint and would review the case and announce a ruling on April 24.