Defendants at the trial (Photo: VNA) OnApril 14, a representative of the Supreme People's Procuracy presented the case and recommended sentencesfor each defendant.
Fourteen defendants were charged with“violating regulations on the management and use of State assets, causing lossesand wastefulness” under Clause 3 of Article 360 in the 2015 Penal Code.
They included Tran Trong Mung (born in 1949), TranVan Kham (born in 1961 and former Chairman of the Board of Directors and GeneralDirector of TISCO), Mai Van Tinh (born in 1952 and former Chairman of Vietnam Steel Corporation (VNS)’s Board of Directors), and Dau Van Hung(born in 1951 and former General Director of VNS).
Two former members of the VNS Board of Directors and three former members of TISCO’sBoard of Directors were accused of “lacking a sense of responsibility, causing seriousconsequences” under Clause 3 of Article 360 in the 2015 Penal Code.
According to the indictment issued by the SupremePeople’s Procuracy, the VNS Board of Directors decided to invest in the second phaseof TISCO’s production expansion project, and TISCO was the investor of the project.
This project initially had total investment ofmore than 3.8 trillion VND (164.9 million USD at the current exchange rate). TheChina Metallurgical Group Corporation (MCC) won the construction bid in 2007.
On July 12, 2007, then TISCO General Director Tran Trong Mung and MCC General Director Shen Heting signed anengineering, procurement, and construction (EPC) contract worth over 160 millionUSD (equivalent to over 3.5 trillion VND). It was stipulated that the value, includingtaxes and expenses necessary for contract implementation, was to not change duringthe implementation process.
TISCO and MCC launched implementation on September29, 2007. However, more than 11 months after the contract took effect, MCC had failedto select or sign contracts with subcontractors, or carry out the EPC contract.Instead, it proposed extending the contract implementation duration and raisingthe contract value by more than 138 million USD.
The indictment said that although individuals atTISCO and VNS were aware that MCC had infringed the contract and groundlessly proposedthe implementation extension and value hike, they did not consider contract termination,revocation of the advance, or reporting the matter to competent persons to abolishthe bidding result and re-organise the bidding process so as to ensure the project’seffectiveness and progress.
Among the defendants, Mung held the overall responsibility for the project’seffectiveness while Tinh was in charge of approving and directing project implementation.
The Supreme People’s Procuracy held that the violations of rules on the managementof State assets and the lack of a sense of responsibility by those at TISCO andVNS caused losses of over 830 billion VND to the State. The sum is the interestrate TISCO had to pay to banks for the period from the time the project began fallingbehind schedule, on May 31, 2011, to the date an official investigation was launched,on April 18, 2019.
The defendants’ criminalacts not only adversely affected economic development and had a direct negativeimpact on production and business activities and the interests of employees at TISCO,they also indirectly affected the process of promoting rapid and sustainable economicdevelopment, becoming a burden on the national economy and causing a loss of trustin society.
On April 15, the trial continued with debates between lawyers, defendants, and representativesof the Procuracy./.
VNA
