Business
Vinashin executives go to trial for business misconduct
  • By The Cuong | dtinews.vn | March 27, 2012 12:50 PM
 >>  Vinashin continues to borrow to pay salaries
 >>  Vinashin eyes double profits in 2011
 >>  Help comes early for to troubled Vinashin and its victims

Former chairman and general director of Vietnam's troubled shipbuilder Vinashin will appear in court today, March 27, to account for their alleged business miscondcucts.

 

The entire scandal caused a total loss of over VND910 billion (USD43.54 million) to the State budget

The Haiphong Municipal People’s Court said, on March 26, that Vinashin’s former chairman, Pham Thanh Binh, and  former general director Tran Quang Vu, along with their accomplices, have been formally indicted for, "intentionally violating State regulations on economic management, causing serious consequences".

Other offenders include Tran Van Liem, the former head of Vinashin's Supervision Committee; Nguyen Van Tuyen, the former director of Hoang Anh Shipping Industry JSC., Trinh Thi Hau, former deputy general director of Vinashin Finance One-member Co. Ltd; Do Dinh Con, former deputy general director of Hoang Anh Shipping Industry Joint Stock Company, To Nghiem, former chairman of Cai Lan Shipping Industry One-Member Co. Ltd. and former general director of Hai Ha Economic Zone Development Investment Joint Stock Company, Nguyen Tuan Duong, former chairman of Cuu Long Investment Joint Stock Company, and Hoang Gia Hiep, former deputy general director of Vinashin Finance One-member Co. Ltd and former director of Shipping Industry Finance Leasing Company.

All nine are alleged to have abused their their positions and power in order to to illegally allocate funds from international bonds. These were bonds were issued by the Government for five separate projects. According to the court, the entire scandal caused a total loss of over VND910 billion (USD43.54 million) to the State budget.

According to the investigative agency involved, violations include the purchase of Hoa Sen ships without prior approval from the Prime Minister, as well as sale of a ship named Bach Giang Giang, without receiving approval from the group’s leadership.

They, perhaps hastily, invested in the Binh Dinh Star project, subsequently incurring large losses. Then they carried out plans for the construction of the Song Hong thermal power plant in Nam Dinh Province. This project was also done without any appraisal from local authorities, and employed outdated technology. In addition, there was no appraisal from local authorities. The result was large losses for the group.

Apart from the property losses, the alleged offenders are accused of not only making very bad business decisions, but also to have tarnished the prestige of the Vietnamese shipbuilding industry.

The trial will last for three days, ending on March 29.

Founded in 1996, Vinashin specialised shipbuilding, but came upon rocky financial waters in 2009.

Vinashin came to the brink of bankruptcy in June, after amassing an enormous debt of VND86 trillion ($4.11 billion).

The company has already defaulted on a $600 million loan, arranged by international creditors, after it failed to make an initial payment of $60 million.  

Leave your comment on this story