Prosecution of CEO of Viet A Company and Director of CDC Hai Duong for inflating the price of COVID-19 test kits
Phan Quoc Viet and his associates at Viet A Company inflated the price of equipment and input materials, setting the selling price at VND 470,000/COVID-19 test kit and paying a percentage of the contract to hospital leaders and CDCs in many provinces and cities.
Viet A Company earns 4,000 billion when selling COVID-19 test kits
Implementing the direction of the Ministry of Public Security's leaders, the Ministry of Public Security's Investigation Police Agency coordinated with professional units of the Ministry of Public Security to organize a special investigation into a ring of law violations in the production and trading of in vitro diagnostic medical equipment for testing for SARSCoV-2 virus (abbreviated as SARSCoV-2 test kit).COVID-19) occurred at Viet A Technology Joint Stock Company (Viet A Company) and related units and localities.
On December 10, the Ministry of Public Security's Investigation Police Agency conducted emergency searches of 16 locations in 8 localities (Hanoi, Ho Chi Minh City, Hai Duong, Thua Thien - Hue, Binh Duong, Long An, Can Tho, Nghe An) and summoned and recorded statements from over 30 related subjects.
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General Director of Viet A Company Phan Quoc Viet. |
On December 17, the Ministry of Public Security's Investigation Police Agency issued a Decision to prosecute the criminal case of "Violating bidding regulations, causing serious consequences" occurring at Viet A Company, Hai Duong Center for Disease Control (CDC) and related units and localities. At the same time, it issued Decisions to prosecute 7 subjects, including 5 subjects belonging to Viet A Company.
These are the subjects: Phan Quoc Viet (born in 1980), hometown: Thang Binh, Quang Nam; residing at 134/3D Dao Duy Anh, Ward 9, Phu Nhuan District, Ho Chi Minh City; residence: A1-2912 The Gold View Building, No. 346 Ben Van Don, Ward 1, District 4, Ho Chi Minh City, is Chairman of the Board of Directors and General Director of Viet A Company; Vu Dinh Hiep (born in 1986), hometown: Hai Hau, Nam Dinh; residing at Hamlet 1, Hai Ninh Commune, Hai Hau District, Nam Dinh Province; residence: Apartment A1828, Samsora Riverside Apartment, 207A QL 1A, Quyet Thang Quarter, Binh Thang Ward, Di An City, Binh Duong Province, is Deputy General Director of Viet A Company;
Ho Thi Thanh Thao (born in 1984), hometown: Duc Hoa, Long An; residing in Tan Binh hamlet, Hoa Khanh Tay commune, Duc Hoa district, Long An province; residence: Chanh hamlet, Duc Lap Thuong commune, Duc Hoa district, Long An province, is the Treasurer of Viet A Company, Store Manager of Au Lac Store; Phan Ton Noel Thao (born in 1990), hometown: Thang Binh, Quang Nam; residing in Group 1, Ha Lam, Thang Binh, Quang Nam; residence: Apartment 31-08, Phu Dong Apartment, Le Trong Tan Street, Di An Ward, Di An City, Binh Duong Province, is the Financial Assistant of Viet A Company.
And Tran Thi Hong (born in 1995), hometown: Thanh Hoa; residing in Dac Mam Town, Krong No District, Dak Nong Province; residence: No. 101/43 National Highway 1A, Binh Duong II Quarter, An Binh Ward, Di An Town, Binh Duong Province, sales staff of Viet A Company.
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General Director of Viet A Company Phan Quoc Viet (left cover, photo above) and other members of Viet A Company. |
At the same time, prosecuted 2 defendants of Hai Duong CDC including: Pham Duy Tuyen (born in 1965), hometown: Ninh Giang district, Hai Duong province; residing at 16A Son Hoa street, Tran Hung Dao ward, Duong city, Hai Duong province; residence: 127 Nguyen Thi Dinh street, Hai Tan ward, Hai Duong city, Hai Duong province, Director of Hai Duong CDC; Nguyen Manh Cuong (born in 1985), hometown: Hai Duong, residing at 38/33 Bui Thi Xuan street, Le Thanh Nghi ward, Hai Duong city, Hai Duong province, former Chief Accountant of Hai Duong CDC.
As a result of the investigation and the fight against the identified subjects, Viet A Company was established by Phan Quoc Viet, who holds the position of Chairman of the Board of Directors, General Director and legal representative. In April 2020, Viet A Company was granted a license to register the circulation of the COVID-19 test kit by the Ministry of Health. To date, this company has supplied COVID-19 test kits to the CDC and other medical facilities in 62 provinces and cities across the country with a revenue of nearly 4,000 billion VND.
Director of Hai Duong CDC received "commission" of 30 billion VND
In the process of trading and consuming COVID-19 test kits, taking advantage of the urgent need for COVID-19 testing in localities across the country and the fact that the COVID-19 test kit product is on the list of products subject to the shortened bidding method, Phan Quoc Viet proactively supplied medical equipment, supplies, and biological products in advance for use by hospitals and CDCs in provinces and cities. Then, colluding with the leaders of these units to legalize the bidding documents by having Viet A Company use legal entities in the system (joint ventures, subsidiaries) to prepare product offer documents, falsely confirm quotations... to complete the documents, sign contracts, and make final payments to Viet A Company at the price offered by Viet A Company, much higher than the cost price.
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Director of CDC Hai Duong Pham Duy Tuyen (left) and chief accountant of CDC Hai Duong Nguyen Manh Cuong. |
At the same time, in order to be assigned to supply medical equipment and supplies in advance, consume in large quantities, increase revenue and profit, and be facilitated in completing documents, payment, and settlement according to the prices proposed by Viet A Company, Phan Quoc Viet also agreed, agreed, and paid a very large amount of money to the officers and leaders of the purchasing units. In order to gain illegal profits and pay money outside the contract, Phan Quoc Viet and the subjects of Viet A Company inflated the price of equipment, input costs of raw materials and materials into the price structure explanation, determining the selling price at 470,000 VND/Kit; agreed and paid a percentage of the contract to the leaders of hospitals and CDCs of provinces and cities during the product supply process.
Up to now, the Ministry of Public Security's Investigation Police Agency has initially clarified the violations in the sale of COVID-19 test kits by Viet A Company to CDC Hai Duong through 5 contracts with a total value of 151 billion VND. Phan Quoc Viet paid a percentage outside the contract to Pham Duy Tuyen, Director of CDC Hai Duong, an amount of nearly 30 billion VND.
The actions of Pham Duy Tuyen, Phan Quoc Viet and related subjects at CDC Hai Duong and Viet A Company violated the principles of fairness and transparency in bidding activities, violated the prohibitions stipulated in the Law on Bidding, and showed signs of the crime of "Violating bidding regulations, causing serious consequences", stipulated in Article 222 of the Penal Code 2015, amended and supplemented in 2017. After the Supreme People's Procuracy approved, the Investigation Police Agency of the Ministry of Public Security executed the above Decisions and Orders.
Currently, the Ministry of Public Security's Investigation Police Agency is continuing to expand the investigation into related individuals and units to clarify the nature of the case and the element of self-interest; reviewing and seizing the assets of the subjects to ensure recovery for the State.
The Ministry of Public Security's Investigation Police Agency has frozen, blocked, and seized many accounts and savings books of Phan Quoc Viet and other members of Viet A Company worth over 320 billion VND, 100,000 USD, 20 real estates in Ho Chi Minh City, Hanoi and other localities; 8 real estates of Pham Duy Tuyen...