The chairman of Bao Long Medical Group, a Vietnamese famous producer and trader of herbal medicine, has been taken to Hanoi for questioning following his arrest in HCM City on Saturday.
Chairman of Bao Long Medical Group Nguyen Huu Khai
On Saturday, July 15, the HCM City Police arrested Nguyen Huu Khai following approval from the Hanoi People's Procuracy. The arrest was made following allegations that Khai had violated the law and appropriated assets already sold to the Bao Son Tourism and Construction Investment Group Joint Stock Company in violation of Article 142 of the Criminal Code.
His violations are under further investigation by the Hanoi Police.
According to the initial investigations, due to great losses, in March 2011, Bao Long Group had to sell its entire stake and assets as well as the product trademark to the Bao Son Tourism and Construction Investment Group Joint Stock Company. Later, Bao Son transferred VND227.5 billion (USD10.8 million) to Bao Long, however, Khai did not conform to the contract articles agreed by the two sides. He has continued appropriating these assets, causing losses to Bao Son. Therefore, the Bao Son Group has lodged its petition to investigation agencies.
Khai, 61, was born in a poor family in My Duc, Hanoi. His company is based in Xuan Thoi Thuong Commune, Hoc Mon District, HCM City. After returning from the army, studied at the Architecture University, but due to difficult conditions, he stopped and went to China. During the stay in China, he learnt many herbal remedies from an owner of pharmacy.
He was imprisoned for three years for his illegal trip to China on his return. After being freed, he returned his hometown to use the remedies learnt in China to provide treatments to locals. Later, he went to HCM City to work as a herbal doctor. In 1987, he set up a traditional medicine class in District 5. In 1993, he formed Bao Long Traditional Medicines Ltd. Co., in HCM City then he expanded the firm across the northern region.
In 2005, he built Bao Long General Hospital in Son Tay, Hanoi and worked with a range of academics and doctors. At that time, Bao Long Medical Group was expanded nationwide with more than 1,000 staff members. In 2007, he began construction on a martial arts school.
He was presented with many medals and cups for his successful business and charity activities. His life was portrayed in a Life Debt which was turned into a film broadcasted by VTV.