The Thai Nguyen Iron and Steel case caused the State to lose 830 billion VND.
The project was behind schedule, incurred interest, increased investment costs... The indictment stated that the defendants had caused the State to lose 830 billion VND.
On the morning of April 12, the Hanoi People's Court held a trial on the case of "Violating regulations on management and use of state assets causing loss and waste".Lack of responsibility causes serious consequences" occurred at Thai Nguyen Iron and Steel Company.
Of the 19 defendants in the case, 18 were present at the trial. Defendant Dau Van Hung requested to be tried in absentia due to heart failure and memory loss.
After checking the identities of the 18 defendants, the panel of judges asked the lawyers to give their opinions. Lawyer Dinh Anh Tuan (Hanoi Bar Association) requested to summon appraisers Nguyen Van Hung, Ministry of Planning and Investment, and appraiser Nguyen Bac Thuy, Ministry of Construction, to appear at the trial to help clarify the damages in the case.
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The defendants at the trial on the morning of April 12. |
Lawyer Nguyen Dinh Khoe proposed that the panel of judges summon former Deputy Prime Minister Hoang Trung Hai to appear in court, as Mr. Hoang Trung Hai had directly directed the Thai Nguyen Iron and Steel project.
Sharing the same opinion with lawyer Khoe, lawyer Tran Van Tao requested the panel of judges to summon Mr. Hoang Trung Hai and Mr. Vu Huy Hoang, former Minister of Industry and Trade.
Regarding these opinions, the panel of judges said they would hold a meeting to make a decision.
The case in phase 2 of the Thai Nguyen Iron and Steel project is one of five cases that the Central Steering Committee on Anti-Corruption requested to be urgently tried at first instance in 2021.
According to the indictment, the project to expand production phase 2 - Thai Nguyen Iron and Steel Company is invested by Thai Nguyen Iron and Steel Joint Stock Company. The Board of Directors of VNS is the level that decides on the investment. The project has a total investment of more than 3,800 billion VND. The winning bidder is the China Metallurgical Science, Technology and Trade Corporation (MCC).
In July 2007, former TISCO General Director Tran Trong Mung signed a contract with the China Metallurgical Science, Technology and Commerce Corporation (MCC) to implement the second phase of the production expansion project - Thai Nguyen Iron and Steel Company. The contract value is 160 million USD (about more than 3,680 billion VND).
After more than 11 months of construction, MCC has not completed detailed design of the items; has not selected and signed contracts with subcontractors; and has not implemented any items of the package.
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Escorting defendant Mai Van Tinh - Former Chairman of the Board of Directors of Vietnam Steel Company. |
Although the project did not progress, MCC still sent many documents requesting TISCO to extend the project implementation time, and at the same time requested that the total cost of the contract be "increased" by another 138 million USD.
The indictment clearly stated that, due to MCC's delay, the defendants Tran Trong Mung and Mai Van Tinh did not consider, direct the suspension, termination of the contract, recovery of advance payment, re-organization of bidding... but directed the implementation of illegal acts on investment and contract violations. The defendants also directed their subordinates to request related individuals of TISCO and VNS to organize and implement the adjustment of cost estimates.
The defendants Le Phu Hung and Nguyen Minh Xuan did not fulfill their responsibilities as members of the VNS Board of Directors when they agreed with the proposals for approval of adjustments to the total investment structure of the project, without basis, causing damage.
The consequences caused the project to be delayed, incurred interest, increased investment costs... The indictment stated that the defendants caused the State to lose 830 billion VND./.