Vinalines’ former CEOs remain face death sentence

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The Hanoi People’s Court handed down the execution order to Dung and Mai Van Phuc – former CEO of the corporation (Vinalines). The two were also forced to pay back VND110 billion ($5.24 million) in losses they caused to the company.

Another seven former employees received 7-22 year imprisonment.

The punishments followed findings of serious corruption at debt-stricken Vinalines, five years ago.

All the defendants were accused of embezzlement and intentionally violating economic management regulations.

According to the indictment, on June 27, 2007, Dung, in his position as chairman of Vinalines, signed a decision to construct a ship-repair factory in coastal Ba Ria – Vung Tau province at a cost of VND3.584 trillion ($183.5 million) without agreement form the prime minister.

In October 2007, he illegally approved a plan to purchase an outdated floating dock constructed in 1965 in Japan for $14.13 million through a broker – Singapore’s AP Company – even the dock’s owner was offering to sell it for only $5 million.

The dock was purchased prior to the factory being constructed, so it remained unused. It was docked in southern Dong Nai province, resulting in massive leasing, interest payment and repair costs.

Dung then illegally revised up the $14.3 million price tag for the dock to $26.5 million and raised the factory cost to VND6.5 trillion ($309.5 million).

The indictment claimed Dung and his colleagues wasted over VND338 billion ($16 million) and embezzled more than VND28 billion ($1.33 million) from the state coffers.

After the deal, AP transferred $1.67 million as a kickback to the conspirators through the bank account of Phu Ha Co Ltd, who director is younger sister of one of the indictees.

When his wrongdoings were discovered, Dung attempted to flee on May 17, 2012, with the support of several police officers, including his younger brother, former Colonel Duong Tu Trong, who at that time was Haiphong city’s deputy director of police.

After Dung absconded, the Ministry of Public Security worked closely with Interpol to issue an international arrest warrant. He was arrested in Cambodia on September 4, 2012.

The case is the third of six serious violations in Vietnam set for trial in November 2013.