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Former Deputy PM of Vietnam Implicated in TISCO Project Violations

Steel News - Published on Wed, 11 Dec 2019

Image Source: VNSTEEL TISCO Case
VN Express reported that Party inspectors said that Vietnam’s Former Deputy Prime Minister Mr Hoang Trung Hai, 2007-2016, committed several violations in overseeing the expansion of steel company TISCO. Party Central Inspection Committee on said that “The standing party committee of the Vietnam Steel Corporation was irresponsible and lacked supervision in its leadership, which led to the firm committing serious violations in a project to expand production by the Thai Nguyen Iron and Steel Joint Stock Company or the TISCO II project. The violations caused very serious consequences and seriously damaged the financial position and properties of the state.

The state currently owns nearly 94 percent of VNSTEEL, while VNSTEEL holds a 65 percent stake in TISCO. The TISCO II project, approved in 2005, had a total capital of over VND 3.8 trillion (USD 242 million). It had two main packages, one of them an EPC package regarding development of a metallurgy processing line. The EPC package was auctioned to the China Metallurgical Group Corporation for over USD 160 million. However, the Government Inspectorate discovered in February that the project’s total capital had been illegally altered by TISCO, from over VND 3.8 trillion to VND 8.1 trillion. Furthermore, at the time of discovery, TISCO had already paid MCC over 92 percent of the total value of the project, but the project was nowhere near completion. As of 2013, the EPC contractor MCC and contractors had stopped all construction activity. Since then, some project equipment have been damaged, negatively affecting the project’s progress and quality, causing investment capital losses

Besides Mr Hai, former deputy heads of the Government Office Van Trong Ly and Nguyen Huu Vu; former deputy head of the sectorial economic department under the Government Office, Nguyen Van Tai; and head of the general department of geology and minerals under the Ministry of Natural Resources and Environment, Do Canh Duong. Among VNSTEEL officials, Nguyen Kim Son and Dang Thuc Khang, both former party chiefs of the company and former board chairmen, were responsible for the violations committed by the firm's standing party committee. Le Phu Hung, former deputy party chief of the company and former general director, and Trinh Khoi Nguyen, member of the firm's standing party committee and deputy general director, were also responsible for violations. Five officials already arrested in connection with the project

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Posted By : Arun Huidrom on Wed, 11 Dec 2019
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