Tran Van Luc, Director of the Railway Project Management Unit under Vietnam Railway Corporation, has been suspended for a second time during an investigation into JTC bribery allegations.

Luc will be questioned about alleged bribes connected with the Hanoi Urban Railway project's Route 1. The deputy head, Doan Tang Ong, will take over the position during Luc's suspension.

Japanese officials expressed appreciation for Vietnam's quick reaction because this case could have negative effects for Japan's ODA policies. The Japanese Ministry of Foreign Affairs said the case is being investigated and they can only disclose information after receiving the results and the government's permission.

The Japanese Ministry of Foreign Affairs also said it expected Vietnam to strictly punish any violators and to work in close cooperation with the Japanese embassy and the Japan International Cooperation Agency (JICA) on public relations pertaining to the case.

Deputy minister of transport, Nguyen Ngoc Dong, suggested that JICA adjust their lending regulations for the Special Terms for Economic Partnership to improve competition and avoid situations in which there is only one firm bid for a project.

Previously, the chairman of Japan Transportation Consultants Inc., Tamio Kakinuma, admitted to Yomiuri Shimbun Newspaper that they had given bribes to officials in Vietnam, Indonesia and Uzbekistan to win projects. In Vietnam, they gave JPY80 million to railway officials to win a JPY4.2 billion urban railway contract.