Defendants at the court. — VNA/VNS Photo Kim Anh

HÀ NỘI — The Hà Nội People’s Court yesterday opened first-instance hearings for 14 defendants accused of serious misconduct in the Vicem operation and trading centre project, a stalled development that prosecutors say caused losses and waste exceeding VNĐ381.6 billion (US$14.57 million).

The defendants face charges of violating regulations on the management and use of State assets and breaching bidding rules with serious consequences.

Among those standing trial are Nguyễn Ngọc Anh, former general director of Vietnam Cement Corporation (Vicem); Hoàng Ngọc Hiếu, former head of Vicem’s project appraisal department; and Dư Ngọc Long, former director of Vicem’s project management board. The trio is charged on both counts.

Several former senior Vicem executives, including Lê Văn Chung, former chairman of Vicem’s members’ council, and Tạ Quang Bửu, former member of the members’ council and deputy general director, are being tried for violations related to State asset management. Former officials of the Vietnam Construction Consultancy Corporation and members of Vicem’s members’ council are also among the accused.

Four other defendants, including Vicem project officials and executives of ECON Construction Investment JSC, are charged with breaching bidding regulations.

According to the indictment, Vicem leaders deliberately inflated financial indicators and overstated the project’s economic efficiency to secure approval for a total investment exceeding the amount stated in the investment certificate. They also failed to implement Government Resolution No.11/NQ-CP issued in December 2011, resulting in an investment plan detached from reality.

Construction of the project in Hà Nội’s Cầu Giấy new urban area began in May 2011. Structural works were completed in August 2015, but the project was then halted. Despite total investment of VNĐ1.245 trillion, the building has never been put into use.

Prosecutors said the misconduct led to losses and waste of more than VNĐ381.6 billion.

The case also centres on alleged collusion during implementation of package No.19. Investigators said Nguyễn Ngọc Anh and Dư Ngọc Long conspired with ECON chairman Đỗ Đình Thu, agreeing that five per cent of contract payments would be returned in exchange for awarding the contract.

Tender documents were leaked to ECON, allowing the company to falsify bidding dossiers to meet technical and financial requirements. ECON was subsequently approved as the winning contractor, despite lacking genuine capacity.

After each payment by Vicem, more than VNĐ3.2 billion in total was allegedly transferred back to Vicem officials, causing additional State losses exceeding VNĐ15.6 billion.

Prosecutors identified Lê Văn Chung as bearing primary responsibility, saying he approved the inflated investment level despite knowing that revenue projections had been artificially boosted.

During the investigation, police froze multiple properties, shares and bonds and seized savings accounts linked to several defendants.

The trial is expected to last seven days.

One defendant, Nguyễn Bích Thủy, former member of Vicem’s members’ council, died on January 8.

The court has suspended criminal proceedings against her, while civil issues and related evidence will continue to be addressed.

Seven of the 13 defendants are currently in custody, while the remaining six are out on bail. Thirty lawyers have registered to represent the defendants at the trial. — VNS