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Ex-senior members of PVTEX brought to trial

Update: August, 29/2018 - 09:00
Ex-senior members of PVTEX are brought to trial. — VNA/VNS Photo Doãn Tấn
Viet Nam News

HÀ NỘI — The Hà Nội People’s Court on Tuesday began the trial of four former senior members of a fiber company under the State-owned oil group PetroVietnam on charges of “deliberately violating State regulations on economic management causing serious consequences”.

The defendants are Trần Trung Chí Hiếu, 1963, former chairman of the Petrovietnam Petrochemical and Textile Fiber JSC (PVTEX); Đỗ Văn Hồng, 1967, former chairman and director-general of of Kinh Bắc Petroleum Construction and Investment JSC – PVC.KBC; Đào Ngọ Hoàng, 1978, former head of the trade-contract division of PVTEX; and Vũ Phương Nam, 1979, former chief accountant of PVTEX.

PVTEX former chairman Hiếu was also charged with taking bribes.

According to the indictment of the Supreme People’s Procuracy, during the implementation of a housing project for PVTEX employees, Hiếu and former director-general PVTEX Vũ Đình Duy signed contracts with an incapable and inexperienced contractor, modified the design and organised the construction different to the original plan previously approved by the People’s Committee of Hải Phòng City.

The four defendants and Duy are accused of advancing money and using the advance for the construction project illegally, leading to a loss of more than VNĐ19 billion (US$817,000) for the State coffers.

The procuracy said their acts have resulted in serious consequences, causing the project to be suspended in 2012, which led to its current dilapidation. The Hải Phòng City People’s Committee decided to withdraw the land for the project and over VNĐ92 billion (nearly $4 million) of State capital that was supposed to be invested in building apartments for workers but illegally used to build other houses instead.

When PVTEX contributed capital to establish PVTEX Kinh Bắc JSC, Duy — who has fled and is currently being wanted by police — and Hiếu also abused their positions and power and forced Hồng to offered VNĐ3 billion ($129,000) to each of them, according to the indictment.

The procuracy said among the four defendants, Hiếu must bear the main responsibility for PVTEX’s wrongdoings and he must be held accountable for deliberate violations of the State’s regulations on investment and construction. He was also found to have directed his subordinates to illegally advance VNĐ20 billion ($859,000) to PVC.KBC, leading to the loss of more than VNĐ19 billion.

The first-instance trial is scheduled to last for four days. — VNS

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