Police from the northern province of Quang Ninh on Thursday arrested Vu Khac Tu, Deputy Director General of Viet Nam National Shipping Lines (Vinalines) for involvement in a VND9 billion (US$423,000) appropriation case.

Vinalines Deputy General Director suspended

Tu at a Vinalines meeting.

Police took Tu into custody in his home in Ha Noi.

According to them, Tu was involved in producing blank receipts and forging signatures of workers at the Quang Ninh Port Limited Liability Company (Quang Ninh Port ), a subsidiary of Vinalines, in 2011 and 2012 when he served as general director of the company.

Tu was allegedly involved with Dong Thi Be, 55, president of the trade union and former chief accountant of Quang Ninh Port Ltd Company, and Bui Thi Tham, 55, who was treasurer of the company.

Last month, legal proceedings commenced against Be and Tham, who were arrested for embezzling assets.

On June 16, Vinalines suspended Tu from work for 15 days and told to account for his activities at the time of the crime.

Earlier, another official, Dinh Ngoc Uyen, Deputy Director of Quang Ninh Port, was also arrested.

Forged payrolls

According to the initial investigation, from the last quarter of 2011 and throughout 2012, Be and Tham, directed by Quang Ninh Port's executives, issued blank receipts and falsified signatures of dockers on 36 teams of the port's member companies at Cai Lan Port 1 and Ha Long and Container Loading and Unloading facility.

They allegedly forged payrolls to appropriate more than VND8 billion, which was then allegedly managed and spent by Tham under the direction of Tu and Be. The defendants have handed VND9.311 billion to the police.

Last month, the appeal court upheld death sentences for former chairman of Vinalines, Duong Chi Dung, and the company's former general director, Mai Van Phuc, on charges of embezzlement and violating State regulations on economic management.

According to the indictment, during 2007-2008, Dung and his accomplices violated regulations on investment, bidding and customs procedures for imports and exports through the purchase and repair of Floating Dock 83M.

This caused losses of VND366.9 billion (US$17.2 million) to the State budget. In the deal, Dung and his accomplices allegedly appropriated $1.666 million.