Procuracy finds group benefits in Dinh La Thang case

16:36 | 15/01/2018
The People’s Procuracy of Hanoi has held that Dinh La Thang appointed a bidding for PVC (PetroVietnam Construction JSC) due to “group benefits” at the $1.7-billion Thai Binh 2 thermal power plant project.
Thai Binh 2 thermal power plant, where PetroVietnam arbitrarily appointed PVC

Choosing a qualified contractor

At the court session on January 15, 2018, Dinh La Thang declared that the bidding appointment of the project was based on PetroVietnam’s development strategy by 2025, the promotion of Vietnamese goods among Vietnamese enterprises and people, and the planned development of the oil and gas sector by 2025. However, Conclusion No.41 of the Politburo did not choose PVC as Thang claimed.

On the question of whether PetroVietnam implemented the bid in line with the directions of the government, the prosecutor said: “Responding to the PetroVietnam’s document signed by Dinh La Thang on appointing PVC as the project contractor, the prime minister assigned PetroVietnam to hold a bidding for the company meeting all requirements and regulations, but PVC was not named in particular.”

As for PVC’s capacity, the representative of the procuracy emphasised that the evaluation of a company’s general capacity goes beyond the profit and expenditure figures. Based on the financial and debt reports of PVC and PetroVietnam, he demonstrated that PVC faced many difficulties at the time and cannot deploy the project.

At the court session, Dinh La Thang and Trinh Xuan Thanh said that PVC’s capacity was not as good as Lilama at the moment, leading to double the time it took to implement the project and additional costs of over VND155 billion per year ($6.83 million).

Group benefits

The representative of the procuracy said that Trinh Xuan Thanh and Vu Duc Thuan were appointed to high positions in PVC by Dinh La Thang. Then, based on their personal relationship, Thang appointed PVC by circumventing legal regulations and ordered the advance payment of over $6.6 million and VND1.3 trillion ($57.3 million).

“This showed group benefits very clearly,” concluded the prosecutor.

At the court session, Thang said he did not know about EPC Contract No.33 and that any violation of state regulations were unintentional. However, the procuracy said that as PetroVietnam is a state-owned group, all assets of the group which were assigned for Thang to manage belong to the state.

Thang violated state regulations and damaged state assets by taking advantage of his role to appoint PVC as contractor.

Earlier, Vu Duc Thuan, former PVC general director and other people had clearly indicated that PVC does not have the requisite experience to execute the project and should not be picked.

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By By Nguyen Huong

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