Hanoi Court Starts Trial of 19 Former Officials of TISCO & VSC
VNA reported that 19 former executives and officials of the Thai Nguyen Iron and Steel JSC and the Vietnam Steel Corporation were brought to trial held by
VNA reported that 19 former executives and officials of the Thai Nguyen Iron and Steel JSC and the Vietnam Steel Corporation were brought to trial held by the Hanoi People’s Court on April 12 for their involvement in wrongdoings at TISCO. 14 defendants are charged with violating regulations on the management and use of State assets, causing losses and wastefulness under Clause 3 of Article 360 in the 2015 Penal Code. They included former General Director of TISCO Mr Tran Trong Mung, former Chairman of the Board of Directors and General Director of TISCO Mr Tran Van Kham, former Chairman of the VNS Board of Directors Mr Mai Van Tinh and former General Director of VNS Dau Van Hung. 2 former members of the VNS Board of Directors and 3 former members of the TISCO Board of Directors were accused of lacking sense of responsibility, causing serious consequences under Clause 3 of Article 360 in the 2015 Penal Code.
According to the indictment issued by the Supreme People’s Procuracy, the VNS Board of Directors decided the investment in the second-phase production expansion project of TISCO and TISCO was the investor of the project. This project initially had total investment of more than VND 3.8 trillion. The China Metallurgical Group Corporation won the construction bid in 2007. On July 12, 2007, then TISCO General Director Tran Trong Mung and MCC General Director Shen Heting signed an engineering, procurement, and construction contract worth over USD 160 million USD. The value, including taxes and expenses necessary for contract implementation, was stipulated not to change during the implementation process. TISCO and MCC launched the implementation on September 29, 2007. However, after more than 11 months since the contract took effect, MCC still failed to select or contract with subcontractors, or carry out the EPC contract. Instead, it proposed extending the contract implementation duration and raising the contract value by more than USD 138 million. The indictment said that although the related individuals at TISCO and VNS were aware that MCC had infringed the contract and groundlessly proposed the implementation extension and value hike, they did not consider contract termination, revoke the advance, or report to competent persons to abolish the bidding result and re-organise the bidding process so as to ensure the project’s effectiveness and progress.