Former chairman and general director of
Vietnam's troubled shipbuilder Vinashin will appear in court today, March 27,
to account for their alleged business misconducts.
The
Haiphong Municipal People’s Court said, on March 26, that Vinashin’s former
chairman, Pham Thanh Binh, and former
general director Tran Quang Vu, along with their accomplices, have been
formally indicted for, "intentionally violating State regulations on
economic management, causing serious consequences".
Other
offenders include Tran Van Liem, the former head of Vinashin's Supervision
Committee; Nguyen Van Tuyen, the former director of Hoang Anh Shipping Industry
JSC., Trinh Thi Hau, former deputy general director of Vinashin Finance
One-member Co. Ltd; Do Dinh Con, former deputy general director of Hoang Anh
Shipping Industry Joint Stock Company, To Nghiem, former chairman of Cai Lan
Shipping Industry One-Member Co. Ltd. and former general director of Hai Ha
Economic Zone Development Investment Joint Stock Company, Nguyen Tuan Duong,
former chairman of Cuu Long Investment Joint Stock Company, and Hoang Gia Hiep,
former deputy general director of Vinashin Finance One-member Co. Ltd and
former director of Shipping Industry Finance Leasing Company.
All
nine are alleged to have abused their their positions and power in order to to
illegally allocate funds from international bonds. These were bonds were issued
by the Government for five separate projects. According to the court, the
entire scandal caused a total loss of over VND910 billion (USD43.54 million) to
the State budget.
According
to the investigative agency involved, violations include the purchase of Hoa
Sen ships without prior approval from the Prime Minister, as well as sale of a
ship named Bach Giang Giang, without receiving approval from the group’s
leadership.
They,
perhaps hastily, invested in the Binh Dinh Star project, subsequently incurring
large losses. Then they carried out plans for the construction of the Song Hong
thermal power plant in Nam Dinh Province. This project was also done without
any appraisal from local authorities, and employed outdated technology. In
addition, there was no appraisal from local authorities. The result was large
losses for the group.
Apart
from the property losses, the alleged offenders are accused of not only making
very bad business decisions, but also to have tarnished the prestige of the
Vietnamese shipbuilding industry.
The
trial will last for three days, ending on March 29.
Founded
in 1996, Vinashin specialised shipbuilding, but came upon rocky financial
waters in 2009.
Vinashin
came to the brink of bankruptcy in June, after amassing an enormous debt of
VND86 trillion ($4.11 billion).
The
company has already defaulted on a $600 million loan, arranged by international
creditors, after it failed to make an initial payment of $60 million.
Dtnews
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