Hanoi disciplines market management staff over Khaisilk incident

December 19, 2017 | 21:23

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The Market Management Department of Hanoi has disciplined two of its market management staff over their oversight of Khaisilk’s fraudulent trading practices.

Nguyen Dac Loc speaking at the conference

This was announced by Nguyen Dac Loc, deputy head of the Market Management Department of Hanoi, at the conference organised this afternoon, according to newswire Vnexpress.

Loc explained that the lack of employees made it difficult for the department to control the stores’ trading practices. There are a number of employees charged with market management in Hoan Kiem district, however, they have to control a large area with over 20,000 stores.

Previously, the local authorities found that Khai Duc JSC, operated by Hoang Khai or Khaisilk, violated regulations on trading in fashion products on five counts, one of them being the criminal act of trading counterfeiter products.

Notably, the local authorities found that a number of silk products lack the logo or contain different materials than denoted. Besides, the company misled customers by supplying incorrect information about the origins or the material of its products.

In addition, the company was found to have committed violations in declaring its business results, showing a difference between the revenue the company declared for tax payment and its real income, without any explanation.

With these violations, Hoang Khai, the chairman of the Board of Directors of Khaisilk JSC, who holds 99 per cent of the company, is facing a sentence of six months to five years of imprisonment, while the highest punishment for these violations may reach up to 15 years.

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