Hà Nội People's Court on Friday opens the trial for the fourth case involving former chairman of the capital city Nguyễn Đức Chung. — VNA/VNS Photo Phạm Kiên

HÀ NỘI — Former Hà Nội People’s Committee Chairman Nguyễn Đức Chung and 14 other defendants on Friday go on trial for price gouging of public trees in the capital city. 

The Supreme People's Procuracy is prosecuting Chung for “abusing positions and powers while performing official duties” according to Article 356, Clause 1 of the Penal Code. 

According to court documents, before 2016, the planting and replacement of trees in the capital city was carried out through bidding. 

In December 2015, Chung, then appointed as the city People’s Committee Chairman, directly managed the task and suspended all bidding then switched to quarterly orders of trees. 

He also directed the Department of Construction director to order the plants directly from Sinh Thái Xanh Company, whose director was Bùi Văn Mận. 

Under Chung’s management, from 2016 to 2019, the tree planting process in Hà Nội met the requirements for bidding, but the Division of Maintenance and Repair for Urban Technical Structures (under the city’s construction department) assigned Hanoi Green Trees Park Ltd Co (under Hà Nội People’s Committee) and Sinh Thái Xanh Company to plant the trees, then created estimates and appraisal after. 

Having 10 contracts signed with the maintenance and repair department, Hanoi Green Trees Park Ltd Co worked with traders to illegally increase the tree prices in quotations and appraisals. 

Six similar contracts were also signed with Sinh Thái Xanh Company. 

These 16 contracts caused VNĐ34 billion (US$1.4 million) in damage to the State budget. 

Court documents said these companies illegally benefit from significant sums of money through close relations with Chung.

The Supreme People's Procuracy said that Chung’s actions violated the operation protocol of State agencies and negatively affected the public’s trust. 

Chung abused his position and power as the leader of Hà Nội to direct his subordinates to place orders illegally, violating the bidding law to benefit those who have close connections with him, the procuracy said. 

This is the fourth case that the former Hà Nội People’s Committee chairman has to stand trial. 

He is currently serving 12 years in prison for three other cases of illegally obtaining confidential documents related to Nhật Cường Company, violations in the procurement of Redoxy-3C substance and wrongful intervention in the bidding process at Hà Nội Department of Planning and Investment. 

Eight defendants in the cases are being prosecuted for “offences against regulations on the management and use of State-owned property that lead to losses or wastefulness” according to Article 219, Clause 3 of the Penal Code. 

They are Hanoi Green Trees Park Ltd Co’s former chairman Vũ Kiên Trung, former director Nguyễn Xuân Hanh, former head accountant Bùi Phương Thảo, former director of the sub-company for tree and plant production Đỗ Quang Tiến; Sinh Thái Xanh Company’s former director Bùi Văn Mận; division of maintenance and repair for urban technical structures’ deputy head of finance-banking office Đỗ Khắc Tú Anh; and Vietnam Valuation and Finance Consultancy JSC’s former price appraiser Nguyễn Thị Ngọc Lâm. 

Other defendants stand trial for smuggling, “offences against regulations on the management and use of State-owned property that lead to losses or wastefulness”, “printing, issuing, dealing in illegal invoices and receipts for payment of State revenues”, and “negligence that results in serious consequences” according to the Penal Code.

The trial is expected to last for five days. — VNS