Defendants at the first-instance trial in HCM City on Wednesday. VNA/VNS Photo

HCM CITY – Court proceedings have begun in the Xuyên Việt Oil case in HCM City.

The trial, which opened yesterday, is expected to last 12 days, with a verdict scheduled for 5 December. The Ministry of Industry and Trade and the Ministry of Finance have been named as civil plaintiffs.

The investigation stemmed from a criminal complaint alleging that Mai Thị Hồng Hạnh, the former chairwoman and director of Xuyên Việt Oil Company, misused State assets, abused her position to embezzle funds, and caused losses amounting to VNĐ214.1 billion (US$8.8 million) from the fuel price stabilisation fund, and VNĐ1.246 trillion (US$51.1 million) in environmental protection taxes.

The Ministry of Public Security’s Department of Security Investigation later prosecuted the case, charging 15 individuals with crimes including "violating regulations on the management and use of State assets, causing losses and wastefulness," "accepting bribes," "giving bribes," and "abusing position and power for personal gain," under Articles 219, 354, 364, and 358 of the Penal Code.

Among the defendants, former deputy Minister of Industry and Trade, Đỗ Thắng Hải, faces trial for "accepting bribes."

Lê Đức Thọ, former Party Secretary of Bến Tre Province, has been charged with both "accepting bribes" and "abusing position and power for personal gain."

Mai Thị Hồng Hạnh, the former chairwoman and director of Xuyên Việt Oil, is accused of "giving bribes" and "violating regulations on State asset management, causing losses and wastefulness."

Others charged with "accepting bribes" include Nguyễn Lộc An, former deputy head of the Domestic Market Department at the Ministry of Industry and Trade; Lê Duy Minh, former head of the Tax Department in HCM City; Trần Duy Đông, former head of the Domestic Market Department; Hoàng Anh Tuấn, former deputy head of the Domestic Market Department; and Đặng Công Khôi, deputy head of the Price Management Department at the Ministry of Finance.

According to the indictment, Hạnh became the owner of Xuyên Việt Oil in 2005 when the company's charter capital was VNĐ50 billion (US$2 million). Over six years, its capital grew to VNĐ3 trillion (US$123 million). By 2013, the company had expanded significantly, with 15 branches, six petrol stations, and nine affiliated companies.

During her tenure, Hạnh abused her position by violating regulations governing the fuel price stabilisation fund and environmental protection taxes, causing State losses totalling VNĐ1.463 trillion (US$60 million). This included VNĐ219 billion (US$9 million) from the fuel price stabilisation fund and VNĐ1.244 trillion (US$51 million) in environmental taxes.

Starting in 2016, Hạnh directed employees to flout regulations by transferring funds from the fuel price stabilisation fund to her personal accounts for private use.

By May 2023, Xuyên Việt Oil reported a balance of VNĐ219 billion (US$9 million) in the fund. However, the actual balances across three accounts totalled just over VNĐ2 million (US$82), leading to significant losses to the State budget.

Furthermore, between October 2021 and July 2022, the company collected VNĐ1.244 trillion (US$51 million) in environmental taxes but failed to remit these funds to the State. Instead, the money was transferred to Hạnh’s personal accounts.

By the time of the investigation, only VNĐ4 billion (US$164,000) remained in 36 accounts, including 17 personal accounts held by Hạnh and 19 company accounts. Hạnh was unable to repay the misappropriated tax funds, resulting in total State losses exceeding VNĐ1.244 trillion (US$51 million).

Hạnh reportedly used the stolen funds to purchase real estate, extend loans, and bribe officials to circumvent legal requirements.

To secure import-export licences for Xuyên Việt Oil from the Ministry of Industry and Trade in 2016 and 2021, and to evade regulatory violations while obtaining preferential contracts, Hạnh paid bribes totalling over VNĐ31.5 billion (US$1.3 million) between 2016 and 2022.

Recipients of these bribes included officials from the Ministry of Industry and Trade and the Ministry of Finance, such as former deputy Minister Đỗ Thắng Hải and former Domestic Market Department Head Trần Duy Đông.

The indictment concluded that the actions of Hạnh and her accomplices not only caused significant losses to the State budget but also undermined public trust in government administration.

Their corruption and illegal activities, carried out to sustain personal and company gains, revealed systemic weaknesses in the management of the fuel sector.

The case highlights the need for stricter oversight and severe penalties to ensure transparency and fairness.VNS