Vietnam CEO Prosecuted for Counterfeit Health Supplements, Bribery Allegations Surface

In Hanoi, Nguyen Nang Manh, CEO of MediUSA, a major health supplement company, has been prosecuted at the Hanoi People's Court on charges including the fabrication of 88 types of health supplements, violations of accounting regulations, and bribery. According to the prosecution, Manh allegedly created an "ecosystem" of companies under MediUSA and used money to manipulate customs officials and cadres of the Food Safety Department (Cục An toàn thực phẩm) under the Ministry of Health to obtain licenses and produce 236 lines of health supplements for the elderly and children. Of these, 88 products were identified as counterfeit, with the content of many components being less than 30% of the declared amount. During his interrogation in court, Manh initially claimed "lack of close supervision" led to the violations. However, when the presiding judge stated that his claim of "not knowing" was unconvincing given his university degree in pharmaceuticals and his role as an operator of multiple companies and factories, Manh admitted to wrongdoing. The defendant stated that he established MediUSA and related companies in 2016, holding 70-80% of the shares, and that his accomplices were aware of the counterfeit production. According to his testimony, most of MediUSA's products were contract manufactured for other businesses. The company then used the same formulas that had been licensed to develop its own products, merely changing the names. Some other products were developed based on information found on the internet, with the company not conducting its own research or formula development. When questioned by the presiding judge about "why the company did not produce according to the formula but reduced the content by 30-80%," Manh claimed that many registered formulas "could not be produced." The defendant argued that the health supplement market is fiercely competitive, and many businesses want to increase their competitiveness by registering very high ingredient levels. These formulas were still licensed by the Food Safety Department. The presiding judge continued to question: "So why could others register and still get licensed by the Food Safety Department?" Manh responded that at that time, the "Department did not pay attention to inspection," and the dossiers were still approved. However, when it came to actual production, the company discovered that the formula could not create a finished product. The court did not accept these arguments. The presiding judge stated that if companies want to compete with foreign products, they must research and develop new formulas themselves instead of using formulas from other entities and then reducing up to 80% of the ingredients. "Products for the elderly and young children, each component is linked to consumer trust. If the defendants reduce almost everything, will the efficacy remain the same? There is no reason other than profit," the presiding judge stated. Several former officials and leaders of the Food Safety Department, Ministry of Health, involved in bribery, were tried in a case that occurred at the department earlier this year. Former director Nguyen Thanh Phong received a sentence of 16 years and 6 months. In the current case, three individuals are indicted for receiving bribes: Nguyen The Viet, former Deputy Director of Customs Supervision and Management; Nguyen Huu Tuan, former Head of Supervision Division 5, Department of Customs Supervision and Management; and Phan Cong Chien, former Head of Pharmaceutical Business Management Department, Department of Drug Administration (Ministry of Health). Nguyen Danh Dung, a former officer from Division 4, Department of Police for Environmental Crime Prevention (C05, Ministry of Public Security), is being tried for intentionally disclosing state secrets. The trial is ongoing. Source: VnExpress