Mr. Dinh La Thang is currently serving 31 years in prison, involved in 2 different cases: 18 years for failing to comply with the state regulations on economic management, causing Vietnam Oil and Gas Group (PetroVietnam- PVN) to lose VND800 billion ($34.5 million) when contributing capital to Oceanbank, and 13 years in prison in a similar case with serious consequences in PVC involving Mr. Trinh Xuan Thanh.
Recently – on Feb 16, Mr. Thang, former PVN’s chairman, was again asked by the Ministry of Public Security to be responsible for violations of regulations on investment in construction works with serious consequences, as defined in Clause 3, Article 224 of the Penal Code.
The Investigation Security Agency determined that Mr. Thang, despite knowing that the joint venture of PVC / Alfa Laval / Delta-T contractors was not capable to carry out the TK05 package of Phu Tho Ethanol project, but still made a decision for implementation of the project, according to Tuoi Tre newspaper.
“Dinh La Thang as the chairman of PVN’s Board of Members, head of the steering committee for the implementation of PVN’s biofuel projects, despite knowing that the joint venture of PVC / Alfa Laval / Delta-T contractors is not capable resources and experience to implement the TK05 package of Ethanol Phu Tho project but still asigned the above-mentioned joint venture to implement the bidding package.” Tuổi Trẻ newspaper wrote.
Similarly, Zing.vn said that “according to the conclusion of the investigation, Mr. Dinh La Thang knows that PVC has never implemented any Ethanol project and the financial situation is difficult, but with the role of former chairman of PetroVietnam and as the chairman of the Steering Committee for the implementation of biofuel projects, Mr. Thang still chaired many meetings to guide PVC contractors to participate in the Ethanol Phu Tho project.”
Concerning this case earlier on June 29, 2018, the Police Agency detained Mr. Vu Thanh Ha, former general Ddirector of Petrochemical and Petroleum Biofuel Joint Stock Company (PVB).
Ethanol Phu Tho is a project to produce ethanol as a mixing material to create biofuel. PetroVietnam’s Petrochemicals and Biofuel Joint Stock Company (PVB) started to implement the project from June 2009 on an area of 50 ha, with an initial investment of about VND 1.7 trillion, after adjustment to more than VND 2.4 trillion. Until now, almost 10 years but this project is still “covering up.”
Many items of the building are still unfinished, many areas have been damaged rust, weeds grow over the head. A few years ago, some workers were inside to do construction and repair but just couldn’t do anything about it. Yes, there are shadows of security guards or police on duty at the gates of gates.
Survey results determined in the bidding documents, the investor did not request anything about the experience and capacity of the contractor.
In November 2011, this project stopped working and total liabilities were VND 830 billion.
As of April 2018, PVB has spent VND772 billion on the project loan from the bank,
Only the damage calculated by the interest rate was over VND600 billion.
The investigating agency determined that Mr. Thang had instructed his subordinates to appoint incapable contractor for Ethanol Phu Tho project, causing a loss of VND543 billion.
According to the survey, in 2007, the Prime Minister approved the project to develop biofuel till 2015, with a vision to 2025. After PetroVietnam submitted a report on 3 biofuel projects and was approved by the Prime Minister. approving the oil and gas industry development plan, Mr. Thang signed a resolution approving the investment policy of Ethanol Production Plant (PVB) located in Tam Nong District, Phu Tho province.
At the end of 2007, PVB was set up as the project investor, with the initial chartered capital of VND405 billion. After that, PVB’s leader approved the construction of Phu Tho Ethanol project with a total investment of over VND1.3 trillion.
PVB announced the bidding document for package TK05 with the content: “Designing, purchasing, supplying equipment and materials, constructing works of the Northern biofuel ethanol factory“.
There are 6 sets of documents of contractors participating in the application, including those of PVC / Alfa Laval / Delta-T joint venture. However, the investor concludes that there are no qualified contractors.
Particularly, the joint venture PVC / Alfa Laval / Delta-T was concluded by the investor that insufficient technical and design and construction capabilities. Financial statements of 2006 also showed that PetroVietnam Construction Joint Stock Corporation (PVC) suffered a loss.
In the notice dated August 1, 2018 of PVN, Mr. Thang allowed the PVN to give priority to PVC for specific specialized works.
According to the orientation of the contract, Do Van Quang (former head of the PVC Economic Planning Department) knows that the unit is incapable but still advises and drafts to PVC to send a dispatch to PVN and PVB to participate in the Ethanol project.
Upon receiving the document, Mr. Dinh La Thang asked his subordinates to appoint PVC as a contractor.
Based on the guidelines of Mr. Thang, the defendants under his authority drafted, advised and proposed the PVC / Alfa Laval / Delta-T consortium to perform the bidding package in the form of bidding appointment.
According to the investigating agency, up to the date of prosecuting the case, PVB has spent more than VND1.46 trillion to implement the project. This unit borrowed from SeaBank and PVCombank with the total amount of more than VND754 billion. Currently, PVB has paid a part interest, the remaining debt is VND417 billion.
In this case, the investigating agency concluded that Mr. Thang knew that the joint venture of contractors was not capable, experienced but still presided and drastically directed the appointment of contractors. The remaining defendants have complied with the direction of Mr. Thang, advised, drafted and proposed to complete the project appointment document for the contractor consortium.
These 10 accused have caused particularly great economic damage, causing public opinion.
The remaining 9 accused were charged with violating the regulations on construction investment, causing serious consequences: Vu Thanh Ha (former General Director of PVB), Nguyen Xuan Thuy (Deputy Head of Division of PVB), Pham Xuan Dieu (former General Director of PVC), Nguyen Ngoc Dung (former Deputy General Director of PVC), Do Van Quang (former Head of PVC Department)
Tran Thi Binh (former Vice President of PVN), Khuong Anh Tuan (former Deputy Manager of PVB), Le Thanh Thai (Manager of PVB), and Hoang Dinh Tam (former chief accountant of PVB).
China’s Global Times on Jan 10 published an article “High-ranking Vietnamese officials scold Chinese contractors, Chinese employees cannot speak.”
In a rather lengthy article, The Global Times reported a January 4 meeting between Vietnam’s Transport Minister Dinh La Thang and the Chinese General Contractor EPC related to a scaffolding collapse that killed one person on Dec 28, 2014, in the Cat Linh – Ha Dong urban railway project.
Global Times said that Minister Dinh La Thang “cursed slap” in the face of the contractor as well as the Department of Construction Quality Management of the Ministry of Transport and threatened to bring the Chinese Railway Company Group Limited Company into the black list makes the nature of the case no longer the same as the original. This article said that the reaction of Mr. Dinh La Thang as well as the Ministry of Transport officials is making the Vietnam-China relationship return to a “gouty” period.
The Global Times reported that a Chinese employee from beginning to end did not have time to nod. Another Chinese employee did not speak any word, just stayed to listen Mr. Dinh La Thang’s rebuke.
The Global Times reported in Japanese newspaper “Diplomat” on Jan 9 that the Cat Linh-Hanoi railway project was funded by the Chinese government, but due to many hesitations, so it was in the immediate future. This item has cost the Vietnamese government millions of dollars.
According to Mr. Thang, the poor performance of the general contractor led to the Cat Linh – Ha Dong elevated railway project being the worst performing in Vietnam. The impact of the environment, travel, accidents from the project causes frustration and indignation among the people. Although the Ministry of Transport has directed the concerned agencies to coordinate closely but the general contractor refused to comply.
Minister Thang said: “The least thing I ask for when pouring concrete is to temporarily block the road that you guys are doing. Every time the accident happened, you guys would accept defects and just be like that. I proposed to replace the general site commander, dismissed the supervision consultant. Supervising consultants to let us appoint and dismiss all subcontractors, replacing them with large Vietnamese subcontractors.”
“If we do not accept this, we will report to the Government instead of the general EPC contractor because we have insufficient capacity. And even if you are aiming for a loan, we report to the Government to stop borrowing capital and use other capital but can not exchange the rights, the lives of Vietnamese people to borrow capital “- Mr. Thang criticized.
The closer to the 13th Vietnam Communist Party Congress, expected to take place in early 2021, the Vietnamese politics is more exciting.
General Secretary Nguyen Phu Trong, along with the “burning furnace” technique, has used the method of bringing a “stick of wood” to burn many times, apparently with the aim of purging the internal faction and the people rather than sincerely fighting against the thieves. The fund is part of a team of over 4 million Communist Party members.
With that vicious anti-corruption approach, it only exacerbates vices, because the dictatorship of the communism system has led to monopoly, accompanied by the bad thing that there is no neutral supervision, this mechanism will continue. creating new and corrupt groups more and more dangerously and cruelly for the Vietnamese people.
Hai Yen from Ha Noi – Thoibao.de (Translated)