Former chairman of PVTex guilty of bribery

08:00 | 14/06/2018
After receiving a gift of shares worth VND3 billion, former chairman of PetroVietnam Petrochemical and Textile Fiber JSC (PVTex) has assigned a contractor without organising a bidding.
former chairman of pvtex guilty of bribery
Former PVTex’s chairman Tran Trung Chi Hieu

Yesterday (June 13), the Ministry of Public Security’s investigation agency has announced its conclusions and proposed to prosecute Tran Trung Chi Hieu (former PVTex chairman) on the charges of “deliberately acting against state regulations on economic management, causing serious consequences” (Article 165 of 1999 Penal Code)and “taking bribes” (Article 354 of 2015 Criminal Code).

Do Van Hong, former chairman and general director of Kinh Bac Petroleum Construction and Investment JSC (PVC-KBC), Dao Ngo Hoang, former head of the Trade Department of PVTex, and Vu Phuong Nam, former chief accountant of PVTex, have also been prosecuted on the charge in Article 165 of the 1999 Penal Code.

Defendant Vu Dinh Duy, former general director of PVTex, has not been found by authorities and the agency issued an arrest warrant.

According to the investigation agency, on August 12, 2009, PVTex's board of management issued a resolution providing approval in-principle to build the workers’ dormitory in Deep C (Dinh Vu Industrial Park) with the total investment of VND320 billion ($14.1 million), sourced from the capital of PVTex and borrowed from PetroVietnam (Vietnam Oil and Gas Group). This project was assigned to contractor PVC-KBC.

The joint venture contractor did not have the five years of experience (nor operation) in this sector and had never carried out a similar contract before, while its sales and after-tax profit in its financial statement were not as much as outlined in regulations.

Hieu abused his position and powers to assign them and sign the contract of this bidding package. Additionally, he directed Hoang and Nam to advance VND20 billion ($0.88 million) to PVC-KBC.

This amount was not spent on the project, causing a loss of VND19 billion ($0.84 million) and nearly VND300 million ($13,200) of interest. The project was stopped in 2012.

According to the investigation agency, PVC-KBC presented Hieu 10 per cent stake worth VND3 billion ($132,160) of its company. Do Van Hong's behaviour showed signs of bribery, but he pleaded guilty before being discovered, thus he was exempted from criminal liability.

In addition to the charge of deliberately acting against state regulations, he requested and received VND8.8 billion ($387,700), while PVC-KBC was developing the project. This was the ground for finding him guilty of "taking bribes."

By Nguyen Huong

Based on MasterCMS Ultimate Edition Ver 2.8 2018