Courier firm shuts down, confesses to stealing cash on delivery money

By Anh Tu, Minh Huong    September 4, 2018 | 09:27 pm GMT+7
Courier firm shuts down, confesses to stealing cash on delivery money
GNN CEO Hoang Ngoc asked people not to engage in any act of aggression against the firm's shareholders. Photo acquired by VnExpress

Hanoi courier company GNN Express has gone bust, and has confessed to pocketing customers’ money to bail itself out of financial trouble.

Its CEO, Hoang Ngoc, told police officers that GNN had stolen VND5.5 billion ($235,000) worth of cash on delivery paid by customers, blaming it on poor management.

Ngoc set up GNN along with 11 other shareholders in 2006 with a chartered capital of VND100 million ($4,270), and opened offices in HCMC, Hai Phong, Da Nang, and Can Tho. The firm offered delivery services in many provinces and cities.

In 2010 he had to borrow money at an interest rate of 15 percent a month, meaning in some months he had to pay VND170 million ($7,260) toward principal and interest.

In 2017, after snapping ties with a major partner, the company began to lose revenues and began to steal cash on delivery (COD) monies.

Apart from bank debts, GNN also failed to pay salary payment and social insurance premiums.

On August 27 Ngoc held a company meeting to reveal the situation and announce plans for rescheduling the debts, but on August 30 admitted he was unable to raise any more money and had no way of saving the firm.

Many customers whose money was stolen tried to get in touch with him. They received a text message saying "I am working with the police" and a promise to repay their money.

On its Facebook page today, September 4, GNN asked people not to engage in any act of aggression against Ngoc or any shareholder, officer or employee in the second meeting of the day, which would happen under the supervision of local police.

The company said that in the previous meeting, customers assaulted and threatened Ngoc, prompting the firm to request local police to be present at the second meeting. It said that the meeting with customers aimed to clarify and provide information on the debts of all partners and other stakeholders in the firm.

COD accounts for nearly 90 percent of e-commerce transactions in Vietnam where customers want to check the goods before paying.

 
 
go to top