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Shipping executives arrested for fraud

Update: February, 09/2012 - 10:24

HCM CITY — Two senior executives from Vinalines Ship Repair Co and another from Hyundai Vinashin were arrested along with a go-between on Tuesday for alleged embezzlement and will face charges.

Tran Hai Son, a former general director of the State-owned Vinalines Ship Repair Co, Tran Van Quang, former head of the company's planning division, Tran Ba Hung, and former deputy head of Hyundai Vinashin's hulls division, are suspected to have pocketed an unspecified sum of money in a deal to install and repair a dock for Vinalines.

Pham Ba Giap, former director of the Nguyen An Co Ltd, allegedly made fake documents and receipts and generally acted as a liaison between the arrested officials.

In June 2007 the Viet Nam National Shipping Lines (Vinalines) – Vinalines Ship Repair Co's parent – approved a project to build a ship-repair dock in Ba Ria – Vung Tau Province at a cost of VND3.85 trillion (US$183.3 million at current rates).

Vinalines Ship Repair Co, which was awarded the contract to repair the dock, spent VND193 billion ($9.2 million) on it, including VND97 billion paid to the Khanh Hoa-based Hyundai Vinashin.

Son and Quang allegedly told Hung to inflate welding steel prices by VND10,000 per kilogramme as well as the volume of steel required.

Through Nguyen An Co, Hung reportedly transferred more than VND1.5 billion ($71,400) to Quang.

Besides, the police said, the cost of buying the dock abroad and having it repaired in Viet Nam cost $10 million more than if it had been bought and repaired abroad. — VNS

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