Mr. Dinh La Thang appeared in court in the fourth case.
On January 22, former PVN chairman Dinh La Thang, Trinh Xuan Thanh and 10 others will be tried on charges of causing losses of 540 billion VND in the Phu Tho Ethanol case.
Starting tomorrow, the trial of 12 people is scheduled to last 10 days at the Hanoi People’s Court. This is the fourth case that Mr. Thang has appeared in court, since his arrest in December 2017.
The Phu Tho Ethanol Project was established with the purpose of producing ethanol as a raw material for blending biofuel. In June 2009, the project was implemented on an area of 50 hectares in three communes of Co Tiet, Tam Cuong, and Van Luong in Tam Nong district, Phu Tho province. By March 2013, the contractors stopped construction of the project, and no items were completed.
The project has now completely stopped. 6 guard posts and 3 meter high fences have been set up with 12 people on duty 24/7. All items, operating buildings and machinery are rusty.
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Grass growing wildly around the project, January 21. Photo: Pham Du. |
According to the indictment of the Supreme People's Procuracy, in 2007, Mr. Thang, in his role as Chairman of the Board of Directors of the Vietnam Oil and Gas Group (PVN), signed a resolution approving the investment policy of the Ethanol Production Plant in the Northern region. At the same time, the Prime Minister issued a decision approving the "project on biofuel development until 2015, vision 2020" assigned to the Ministry of Industry and Trade to preside. At the end of 2007, the Petrochemical and Biofuel Joint Stock Company (PVB) was established to be the project investor.
In August 2008, PVB and Chemical Industry Design Joint Stock Company (CECO) signed a consulting contract to prepare the construction investment project and bidding documents. In February 2009, the project was approved for construction with a total investment of more than 1,300 billion VND, to be implemented in 18 months, expected to be put into use in October 2010.
When PVB invited pre-qualification for the TK05 "Turnkey" package to build the Phu Tho Ethanol plant, 6 contractors submitted their applications. Among them was the PVC/Alfa Laval/Delta-T Joint Venture, as the Vietnam Oil and Gas Construction Joint Stock Corporation (PVC) did not meet the requirements.
CECO assessed that all six contractors had not met 100% of the criteria for capacity and experience. The PVC/Alfa Laval/Delta-T joint venture had not met the criteria for technical capacity, design consultancy, construction, and the 2006 financial report showed that PVC was making a loss.
According to the accusation, knowing that PVC had never implemented any project in the Ethanol field, but before PVB deployed the contractor selection, Mr. Thang chaired many PVN meetings, directing the contract to PVC at the request of Trinh Xuan Thanh.
Mr. Thang concluded: "From 2008-2010, PVC is given priority for bidding on specialized projects with special requirements in the oil and gas industry. In 2009, PVC must strive to complete its tasks, including the Phu Tho Ethanol project."
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The Eathanol project has security guards on duty day and night. Photo: Pham Du. |
Following Mr. Thang’s direction, Trinh Xuan Thanh signed an official dispatch to PVB requesting to be assigned to carry out the Phu Tho Ethanol project. Because PVN had not given any direction, PVB did not agree and still organized the international bidding.
Then, implementing PVN's policy and Mr. Thang's direction on bidding, PVB did not organize the auction as planned but instead assigned the bid to the PVC consortium. During the implementation process, the members of the expert team assisting in bidding and bid appraisal were all aware of the criteria on capacity and experience of the PVC/Alfa Laval/Delta-T consortium that were assessed as not meeting the criteria, but still violated them, the authorities determined.
Due to the delay in the contract implementation, PVC admitted that it lacked capacity. In March 2013, PVC unilaterally stopped the project, with no items completed.
When implementing the project, PVB borrowed more than 750 billion VND from banks and the Vietnam Oil and Gas Finance Company. From the date of project implementation (September 2009) to the time of prosecution (June 2018), PVB paid PVC more than 600 billion VND and Alfa Laval more than 230 billion VND. The investor used more than 1,400 billion VND to implement the project.
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Mr. Dinh La Thang in court in Ho Chi Minh City, December 2020. Photo: Huu Khoa. |
Authorities allege that knowing that PVC had never carried out any Ethanol projects and was in financial difficulty, Mr. Thang chaired many meetings and "resolutely" directed the contract to be awarded to PVC as requested by defendant Thanh.
Trinh Xuan Thanh knew that the PVC/Alfa Laval/Delta-T consortium did not have the capacity to carry out the bid, but he still received instructions from PVN leaders to sign a document requesting to be designated as the bidder. This former PVC chairman also chaired a meeting of the Board of Directors and the Board of General Directors of PVC to agree to carry out the bid; and signed an official letter to Mr. Thang requesting a commitment to carry out the bid.
The People's Procuracy determined that "the acts of violating regulations by Mr. Thang, Thanh and the defendants resulted in losses to PVB of more than 540 billion VND."
In this case, Trinh Xuan Thanh was also accused of establishing a company under his father's name to receive the transfer of 3,400 m2land for profit.
According to the indictment, heDinh La Thang, 61 years old, along with Vu Thanh Ha (former General Director of PetroVietnam Oil and Biofuel Joint Stock Company - PVB), Nguyen Xuan Thuy (former Deputy Head of PVB Project Investment Department), Khuong Anh Tuan (former Deputy Head of PVB Trade Department), Le Thanh Thai (former Head of PVB Business Department), Hoang Dinh Tam (former Chief Accountant of PVB), Pham Xuan Dieu (former General Director of PVC), Nguyen Ngoc Dung (former Deputy General Director of PVC), Do Van Quang (former Head of PVC Economic Planning Department), Tran Thi Binh (former Deputy General Director of Vietnam Oil and Gas Group) were prosecuted for the crime ofViolating regulations on investment in construction works causing serious consequences,according to Clause 3, Article 224 of the 2015 Penal Code.
In the same case, Trinh Xuan Thanh (former General Director, Chairman of the Board of Directors of PVC) was charged withViolating regulations on investment in construction works causing serious consequences,according to Clause 3, Article 224 of the 2015 Penal Code andTaking advantage of position and power in performing official duties,according to clause 3 article 356.
Do Van Hong on chargesTaking advantage of position and power in performing official duties,according to clause 3 article 356.