HCMC – The Supreme People’s Procuracy has handed down an indictment against 19 people for allegedly causing losses of more than VND830 billion for Thai Nguyen Iron and Steel Joint Stock Corporation (TISCO).
They were involved in violations over regulations on the management and use of State assets, leading to losses and wastefulness in the second phase of a project to expand production at TISCO, the local media reported.
The indictment was handed down on former chairman of Vietnam Steel Corporation (VNS) Mai Van Tinh, former VNS deputy general director Nguyen Trong Khoi, former VNS general director Dau Van Hung, former TISCO general director Tran Trong Mung, former TISCO chairman and general director Tran Van Kham, former TISCO deputy general director and head of the management board of the second phase of the expansion project Ngo Sy Han and 13 others.
According to the procuracy’s indictment, the second phase of TISCO’s production expansion project was approved in 2005 with an investment of more than VND3.8 trillion.
In July 2007, Mung signed an engineering, procurement and construction contract worth over US$160 million with Chinese contractor Metallurgical Construction Corporation of China (MCC).
In August 2008, MCC cancelled the contract and withdrew all employees from the project while it had yet to complete detailed designs for items, sign contracts with subcontractors and execute any item.
In addition, MCC proposed extending the deadline to execute the contract and revising the contract’s value up by over US$138 million without a legitimate foundation.
Meanwhile, Mung and Tinh, with their duties and missions, failed to direct the termination of the contract, take back the capital advanced for MCC and hold another tender, but direct the execution of illegal acts. They, together with Kham and Hung, asked the employees of TISCO and VNS to adjust the estimated cost for the project.
These violations saw the progress proceed at a slow pace, leading to an increase in the interest of loans and investment in the project and subsequent losses of VND830 billion.