The Investigation Police Agency under the Ministry of Public Security, on May 16, announced it had completed its investigative conclusion and transferred the case files to prosecute 23 suspects charged with "Receiving Bribes," "Giving Bribes," and "Fraudulent Appropriation of Assets" linked to Son Lam Pharmaceutical Joint Stock Company.
The investigation revealed a major corruption scandal within the healthcare and social insurance sectors, spanning multiple provinces and cities across Vietnam. This case, marked by its extreme complexity and severity, involved criminal activities dating back to 2015 that were only recently uncovered, posing significant challenges for law enforcement. The perpetrators exploited loopholes and regulatory weaknesses in bidding procedures and oversight mechanisms during contracts for purchasing traditional medicinal herbs and ingredients, colluding and employing sophisticated fraudulent schemes to embezzle funds from the social insurance system.
Further inquiries exposed that several authorized individuals from various hospitals and health centers abused their positions during the negotiation and execution of contracts for traditional medicine procurement, thereby undermining the integrity of State management in healthcare, traditional medicine, and social insurance.
According to investigative documents, Pham Van Cach, Chairman of the Board of Directors at Son Lam Pharmaceutical JSC, conspired with Nguyen Manh Quyen, General Director of LanQ Company, using deceitful tactics to fraudulently appropriate over VND18 billion from Bac Giang Provincial Social Insurance and the public.
During Son Lam’s execution of supply contracts to several hospitals and health centers, Cach reportedly paid more than VND71 billion in bribes to influential individuals to avoid obstacles in drug delivery.
Following the indictment of Cach, Huynh Nguyen Loc, former Director of the Traditional Medicine Institute of HCMC, transferred VND7 billion to the account of Bui Thi Thanh Huong (Cach’s daughter-in-law) as partial reimbursement of received commission fees. The investigative agency regards this sum as proceeds related to criminal acts, subject to consideration and prosecution within the same case.
The investigation further detailed that Huynh Nguyen Loc, empowered to authorize and implement drug procurement contracts for health insurance treatment at the HCMC Traditional Medicine Institute, exploited his authority to negotiate and receive bribes exceeding VND47 billion from Pham Van Cach to facilitate Son Lam’s drug supply operations at the institute.
Meanwhile, Truong Thi Thu Huong, Director of Thai Nguyen Provincial Traditional Medicine Hospital, who was authorized to sign and implement health insurance drug purchase contracts there, abused her position to solicit and accept bribes exceeding VND10 billion from Cach during the hospital’s contract processes with Son Lam Pharmaceutical JSC.
In Da Nang, during joint contracts supplying medicine to hospitals and health centers, Tong Viet Phai, then General Director of Da Nang Pharmaceutical and Medical Equipment JSC, allegedly negotiated and received funds from Son Lam Pharmaceutical JSC. Phai reportedly distributed over VND4 billion in commissions to 12 hospitals and health centers to ensure cooperation and avoid impediments in drug supply.
The Investigation Security Agency also determined that Than Duc Lai, former Director of Bac Giang Social Insurance, abused his authority to unlawfully facilitate the disbursement of health insurance advance payments to LanQ Company, receiving VND700 million in bribes from Nguyen Manh Quyen.
