Defendants at the trial hearing. — VNA/VNS Photo Phạm Kiên

HÀ NỘI — The Hà Nội People’s Court on Wednesday opened the first-instance trial of former Minister of Health Nguyễn Thị Kim Tiến and nine other defendants over prolonged delays in the construction of the second campuses of Bạch Mai Hospital and Việt Đức Hospital, which allegedly caused serious losses to the State budget totalling more than VNĐ803 billion (US$31.5 million).

The case involves alleged violations of regulations on the management and use of State assets causing losses and waste, fraud and embezzlement, and bribery at the Ministry of Health and related agencies.

The trial panel consists of five members, including two judges and three people’s jurors. Judge Nguyễn Xuân Văn, deputy chief judge of the court, is presiding over proceedings.

One prosecutor from the Hà Nội People’s Procuracy and four prosecutors seconded from the Supreme People’s Procuracy are representing the prosecution.

More than 40 people with related rights and obligations, out of a total of 73 summoned individuals, attended the hearing. More than 20 lawyers are defending the defendants.

Former minister Tiến, born in 1959, is charged with violating regulations on the management and use of State assets, causing losses under Article 219, Clause 3 of the Penal Code, in connection with the two hospital projects in the former Hà Nam Province, now part of Ninh Bình Province.

Six other defendants face the same charge, including Nguyễn Kim Trung, former deputy director of the Ministry of Health’s Major Medical Projects Management Board; Trần Văn Sinh, former deputy director of the ministry’s Specialised Construction Project Management Board and former head of its technical and cost estimation division; and Đào Xuân Sinh, director of SHT Consulting, Investment and Construction JSC.

Two defendants, including former Major Medical Projects Management Board director Nguyễn Chiến Thắng and former director of the Specialised Construction Project Management Board Nguyễn Hữu Tuấn, are charged for violating regulations on State asset management, causing losses and waste, and accepting bribes under Article 354, Clause 4(a) of the Penal Code.

Lê Thanh Thiêm, director of Sao Nam Sông Hồng Co Ltd, is charged with fraud and appropriation of assets under Article 174, Clause 4(a).

Nguyễn Thị Kim Tiến, former minister of health, gives testimony before the court. — VNA/VNS Photo Phạm Kiên

According to the indictment, the defendants committed multiple violations during the implementation of the projects, including irregularities in hiring foreign consultants, preparing and approving contractor selection plans, organising bids and signing and executing construction contracts in breach of legal regulations.

Investigators determined that the deliberate hiring of foreign consultants in violation of regulations inflated consultancy costs far beyond permitted limits, causing losses to the State estimated at more than VNĐ70.2 billion ($2.66 million).

The indictment also cited a series of violations in preparing bidding documents, selecting contractors, signing contracts and carrying out construction without sufficient legal conditions, including simultaneous design and construction work.

As a result, both projects were stalled from January 2021 through December 2024 despite more than 50 per cent of total investment capital having already been disbursed, allegedly causing waste of more than VNĐ733.5 billion ($27.8 million) in State assets.

In total, authorities said the violations related to the two projects caused losses and waste exceeding VNĐ803 billion.

Nguyễn Chiến Thắng, former director of the Ministry of Health’s Major Medical Projects Management Board, gives testimony before the court. — VNA/VNS Photo Phạm Kiên

According to the indictment, on March 7, 2014, the Ministry of Health established the Major Medical Projects Board with 18 members, appointing Nguyễn Chiến Thắng, then deputy director-general of the ministry’s Department of Medical Equipment and Health Works, as director. The board served as the investor for both projects under authorisation from the health minister.

During the process of hiring foreign consultants, after negotiations with Belgium-based consultancy VK Group, Thắng instructed Trần Văn Sinh to prepare consultancy cost estimates of VNĐ24 billion ($910,350) for each project for foreign consultants working alongside domestic consultants.

Thắng also sought assistance from Lê Văn Cư, deputy director of the Ministry of Construction’s Institute of Construction Economics, to appraise the consultancy costs.

On March 24, 2014, Thắng requested the institute to appraise cost estimates for preparatory work on the two projects. Although aware that the consultancy costs lacked a proper basis, Cư still approved the appraisal results for the preparatory cost estimates.

On April 14, 2014, Thắng approved the preparatory investment estimates for the two projects, including consultancy costs of VNĐ24 billion per project for foreign and domestic consultants preparing investment plans.

Regarding further violations in the bidding and contractor selection process, on November 12, 2014, the Ministry of Health asked the Ministry of Construction to appraise the basic designs and total investment levels of the projects.

Following the appraisal, the Ministry of Construction requested the Ministry of Health to instruct the investor to finalise the designs and investment estimates before submitting the projects for approval and moving to subsequent stages.

However, despite not complying with those recommendations, Thắng reported the dossiers as completed and submitted them to the Ministry of Health for approval on November 24, 2014.

Nguyễn Doãn Tú, who was responsible for advising the health minister on State management of medical equipment and healthcare construction investment, concluded that the Major Medical Projects Board had revised the issues raised by the Ministry of Construction and that the investment project dossiers were eligible for approval.

On December 1, 2014, then health minister Nguyễn Thị Kim Tiến approved both projects, allegedly allowing the violations to occur.

The trial is expected to last one week. — VNS