LookAtVietnam – The Ministry of Public Security has told police agencies in seven provinces to investigate seven law-breaking and corruption cases related to the state-owned Vietnam Shipbuilding Industry Group or Vinashin.
The seven provinces are Ha Tinh, Quang Ngai, Hai Duong, Nam Dinh, Yen Bai, Hai Phong and Quang Ninh.
These investigations will be carried out based on the recent conclusion of the Government Inspectorate about Vinashin’s law compliance.
The Supreme People’s Court also requested procuracy offices in the seven above provinces to consider and approve prosecutions that will be proposed by the local police agencies.
The three corruption cases related to Vinashin include: 1) The intentional violation that caused a waste of about VND1 trillion (US$47.8 million) concerning two projects of the Ben Thuy Shipyard in Ha Tinh; 2) The case is related to the Dung Quat Shipyard project in Quang Ngai that caused VND59 billion losses (around $3 million); 3) The wrongful use of a loan of VND300 billion ($15 million) at the Cuu Long Vinashin Investment JS Company in Hai Phong.
According to the Government Inspectorate, law-breaking and corrupt acts in Vinashin in the past several years have resulted in a total debt of over VND86 trillion ($4.1 billion). In 2009 alone, the group suffered a loss of nearly VND5,000 billion ($250 million).
The Ministry of Public Security has prosecuted nine top executives at Vinashin for “intentionally acting against the state’s economic management regulations and causing serious consequences.” These former executives have been found causing a total financial loss of nearly VND907 billion ($45.4 million).
In related news, Prime Minister Nguyen Tan Dung has nominated Deputy Prime Minister Vu Van Ninh as the new head of the Steering Board for Restructuring Vinashin, replacing Nguyen Sinh Hung, who is now National Assembly Chairman.
The committee also has six new members, including Minister of Transport Dinh La Thang, Minister of Finance Vuong Dinh Hue, Governor of the State Bank of Vietnam Nguyen Van Binh, Deputy Minister of Public Security To Lam, Vice chief of the Central Party Committee’s Popularization and Education Department Bui The Duc and Secretary of the Central Party Committee in charge of State Enterprises Truong Quang Nghia.
The Steering Board for Restructuring Vinashin Group was established last August 13, 2010. It is entrusted to develop, put forth, organize the implementation of necessary policies and measures for quick production stabilization and development of the group after it had experienced a serious debt crisis.
The plan to restructure Vinashin has four main tasks: re-organizing leadership; restructuring subsidiaries; examining Vinashin’s investment projects and financial capabilities; and assessing some subsidiaries of Vinashin before transferring them to other companies, such as the Vietnam National Shippping Lines (Vinalines) and the Vietnam National Oil and Gas Group (PetroVietnam).