Former Hai Duong Provincial Party Secretary Pham Xuan Thang was arrested.

Former Hai Duong Provincial Party Secretary Pham Xuan Thang. Photo:Hoang Phong

Mr. Pham Xuan Thang, former Secretary of Hai Duong Provincial Party Committee, was arrested on charges of directing violations of bidding regulations in the case related to Viet A Company.

On September 17, Lieutenant General To An Xo, Chief of Office and spokesman of the Ministry of Public Security, said that the Ministry of Public Security's Investigation Police Agency had just prosecuted and detained Mr. Thang and Mr. Pham Manh Cuong, former Director of the Hai Duong Department of Health, to investigate the crime.Taking advantage of position and power while performing official duties,according to Clause 3, Article 356 of the Penal Code.

The two men were accused by the investigation agency of directing violations in bidding so that Viet A Company could illegally profit from an especially large amount of money, causing especially serious damage to state assets.

A day before, Mr. Thang and Mr. Cuong were suspended from Party activities and Party positions by the Politburo and the Secretariat.

This is a new development as the investigation agency expands the case.Violating regulations on management and use of State assets causing loss and waste; Violating regulations on bidding causing serious consequences; Abusing position and power while performing official duties; Giving bribes; Receiving bribesoccurred at Viet A Company and related units and localities.

In the past 6 months, since the Viet A case was exposed, the Department of Police Investigation of Crimes of Corruption, Economic Crimes, and Smuggling and local police have prosecuted nearly 70 people. Among them are former Minister of Health Nguyen Thanh Long, former Chairman of Hanoi Chu Ngoc Anh and a series of CDC directors and officials of the provincial Department of Health. The Ministry of National Defense's Investigation Agency also prosecuted another case, arresting two officers.

Initial investigation results determined that, in order to make illegal profits and pay money outside the contract, Viet A inflated the prices of equipment and input materials. Of the revenue of about 4,000 billion VND, Viet A paid "commissions" to units and individuals of nearly 800 billion VND.