The Pharma Chairman’s Dark Secrets: How a Daughter-in-Law’s Bribe Exposed a Web of Corruption.

In the investigation conclusion of a case that took place at LanQ Company, the Ministry of Public Security’s Security Investigation Agency accused Pham Van Cach, the former chairman of Son Lam Pharmaceutical Company (Son Lam Pharma), of bribing healthcare officials in Hung Yen province with over VND 71 billion during the company’s drug provision to several hospitals and medical centers.

As a result, several former medical officials in Hung Yen have been charged with bribery, including Vu Ngoc Ngat, former director of Khoai Chau District Medical Center; Nguyen Thi Thuy Binh, former chief accountant of Khoai Chau District Medical Center; Quach Thi Lich, former head of Finance and Accounting Department at Hung Yen Province Hospital of Traditional Medicine; Vu Duc Thang, former head of the Pharmacy Department at Kim Dong District Medical Center; and Nguyen Duy Thanh, former deputy head of the Pharmacy Department at My Hao Town Medical Center.

The investigation conclusion shows that at the Hung Yen Province Hospital of Traditional Medicine, from 2014 to 2019, Son Lam Pharma won bids and executed six contracts worth over VND 21 billion in total. The accused, Quach Thi Lich, former head of the Finance and Accounting Department, was responsible for inspecting and processing the paperwork for the drug supply contracts.

From 2018 to 2019, Lich demanded that Cach pay a 10-15% commission on each invoice. The money was transferred to Lich’s bank account after the hospital made payments to Son Lam Pharma for the drug purchases.

To avoid any issues, Cach agreed and instructed his daughter-in-law, Bui Thi Thanh Huong, to transfer money to Lich’s account on four occasions, totaling over VND 500 million.

Similarly, at the Khoai Chau District Medical Center, from 2017 to 2021, Son Lam Pharma signed and executed four contracts worth over VND 4.2 billion. From 2018 to 2021, Vu Ngoc Ngat, the former director, demanded a 12% commission, which was to be transferred to the account of Nguyen Thi Thuy Binh, the former chief accountant. Cach agreed and subsequently instructed his daughter-in-law to make nine transfers totaling more than VND 470 million.

At the Kim Dong District Medical Center, from 2017 to 2021, Son Lam Pharma won bids and executed five contracts worth over VND 2.8 billion. Vu Duc Thang, former head of the Pharmacy Department, requested a 12% commission to be transferred to his wife’s account. Cach directed his daughter-in-law to make six transfers totaling VND 287 million.

At Pho Noi General Hospital, which later became the My Hao District Medical Center in Hung Yen, from 2015 to October 2017, Son Lam Pharma won bids and executed three contracts worth over VND 4.3 billion. From April 2019 to May 2021, the company won two more contracts with the My Hao District Medical Center, totaling over VND 1.1 billion.

Nguyen Duy Thanh, who initially worked at the Pharmacy Department of Pho Noi General Hospital and later became the deputy head at the My Hao District Medical Center, was in charge of drug procurement and directly liaised with suppliers, including participating in drug inspection boards.

During the contract execution, Thanh requested that Cach pay a 10-12% commission by transferring money to his brother-in-law’s account. To avoid any issues, Cach agreed and instructed his daughter-in-law to make eight transfers totaling over VND 600 million.