Prosecution and temporary detention order issued for former PVTEX General Director Vu Dinh Duy

On June 19, the Ministry of Public Security's Investigation Police Agency issued a decision to prosecute the criminal case of intentionally violating state regulations on economic management causing serious consequences at the PetroVietnam Petrochemical and Fiber Joint Stock Company (PVTEX), Kinh Bac Petroleum Investment and Construction Joint Stock Company (PVC.KBC) and related units.

Mr. Vu Dinh Duy, former General Director of PVTEX. Photo: PVtex.

On the same day, the investigation agency prosecuted and executed a search warrant against Mr. Tran Trung Chi Hieu, former Chairman of the Board of Directors of PVTEX; Mr. Vu Dinh Duy, former General Director of PVTEX; Mr. Vu Phuong Nam, Chief Accountant of PVTEX; Mr. Dao Ngo Hoang, former Head of the Contract Trade Department of PVTEX and Mr. Do Van Hong, Chairman of the Board of Directors and General Director of PVC.KBC Company.

Of the five defendants, Mr. Do Van Hong was previously detained in connection with a case at the Vietnam Oil and Gas Construction Joint Stock Corporation (PVC). The remaining four have just been subject to preventive measures according to the decision of the police investigation agency.

The Ministry of Public Security's Investigation Police Agency is expanding the case and applying legal measures to recover lost assets.

The Dinh Vu polyester fiber factory project has a total investment of nearly 325 million USD, located in Dinh Vu Industrial Park, Hai An district, Hai Phong city.

The project has a capacity of 500 tons of fiber/day and according to PVTEX's calculations, the project was preliminarily accepted in August 2013, expected to fully recover capital after 8 years and 8 months.

However, from the trial run to the official operation, this factory continuously incurred losses. After 2 years of production and business operations, the factory lost more than 1,472 billion VND, and by the end of 2015, it had stopped operating.

In 2013, the Prime Minister requested the Vietnam Oil and Gas Group (PVN) to divest from PVTEX from 56% to 36%. However, contrary to the above directive, the resolution of the Ministry of Industry and Trade and the resolutions of the Vietnam Oil and Gas Group increased PVN's capital ratio in the Petrochemical and Fiber Joint Stock Company from 56% to 75%.

Mr. Tran Trung Chi Hieu, former Chairman of the Board of Directors of PVTEX, one of the 5 people prosecuted. Photo: PVTEX.

In October 2016, the Government Inspectorate announced the inspection conclusion at PVTEX. Discovering signs of intentional violations and lack of responsibility in approving the project, selecting contractors, and signing contracts with contractors, causing loss and waste of investment capital, the Government Inspectorate recommended that the Ministry of Public Security receive the dossier for investigation and handling in accordance with the law.

Around the end of 2016, public opinion was stirred up when the Vietnam Chemical Group (Vinachem) sent an official dispatch to the Ministry of Industry and Trade, announcing that former PVTEX General Director Vu Dinh Duy had submitted a request for leave to seek medical treatment.

However, the Ministry of Industry and Trade did not accept and directed Vinachem to summon him to the agency to comply with the law. However, since October 2016, Mr. Duy has not gone to work and has been absent from the agency. According to the Ho Chi Minh City Police newspaper, the Immigration Department (Ministry of Public Security) said that Mr. Vu Dinh Duy had left the country since October 22, 2016.

According to Zing.vn