Hanoi (VNA) - The Ministry ofIndustry and Trade (MoIT) has transferred documents of the Khaisilk scandal tothe police for investigation after it discovered signs of criminal violations.

The ministry on December 12 announced that ithad completed product quality check-ups and inspection on some silk itemsof Khai Duc Company Limited – the owner of the Khaisilk brand.

The inspection results showed that there was nosilk ingredient in some products, despite the label of ingredients stating thatthe product is 100 percent silk.

“The company violated rules relating to fake andpoor quality products,” the ministry said.

The ministry said some products at the companywere not labelled as required or had a lack of compulsory information.

The company also showed some signs ofwithholding information or providing inadequate and exact information toconsumers, or selling items without a clear origin, MoIT added.

Statistics from the General Department of Customsshowed that between 2006 and 2009, the Khai Duc CompanyLimited imported fashion productsfrom China and Thailand. However, the company stopped importingfashion products from the two countries since 2009.

The company had not produced or outsourcedfashion products at its production units in Việt Nam. It instead boughtthem from shops, household businesses and other firms in the market, labellingits brand “Khaisilk®”, “stylised Khaisilk” and “Khaisilk Made in Vietnam” tosell at stores, nationwide.

Khaisilk was also found to be guilty ofviolations in taxes and invoices. Specifically, some of its invoices wereillegal and not issued by tax agencies, while some had the wrong names of goodsdeclared.

Inspectors discovered a huge difference betweenthe company’s accounting data and checked products at some of its branches. Thecompany could not explain the reasons for the difference.

MoIT said that it would continue to clarify andresolve the violations under its management.

Minister of Industry and Trade Tran Tuan Anh, atthe end of October, signed a decision to establish an inspection team todiscover violations at the company following the trade fraud of its scandalselling made-in-China products.

In the beginning of November, Deputy PrimeMinister Truong Hoa Binh instructed relevant agencies to clarify the violationsin silk trading and report to the PM before December 15.

The Khaisilk crisis broke out in Octoberwhen a business in Hà Nội posted on Facebook to complain aboutproducts it had bought from the brand saying they were actually madein China.

According to the post, the company bought 60 Khaisilk-brandedscarves at the Hang Gai shop in Hanoi for 644,000 VND (28 USD) each.However, one scarf had two tags, including “Khaisilk Made in Vietnam” and “Madein China.”

The company said it had checked the rest of thescarves and found signs that the “Made in China” tags had been removed.

Hoang Khai, Khaisilk Group’s chairman, latersaid that the scarves were actually imported from China. Khai apologisedand offered compensation to customers.

The company operates in several sectors.However, the inspection team focused only on check-ups in production,outsourcing and import-export of its fashion products.-VNA