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The Institute for Ethics and Economic
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INVESTORS TELL Police complete investigation into another major corruption
scandal. It was reported that police have recommended that five
officials and two company executives be prosecuted in a US$2.9 million
corruption scandal, one of several recent graft cases in Vietnam’s oil
industry, state-controlled. The scam centered on the construction of workers
housing units at an oil rig off
scrutinize the country’s oil and gas monopoly in wake of corruption SCANDAL. It was reported that Vietnam’s prime minister plans to take an in-depth look at the country’s oil and gas monopoly following a series of corruption scandals in the industry. In recent months, police have arrested six senior officials that include a deputy general director of PetroVietnam and five top executives of the company’s subsidiaries for their alleged involvement in corruption involving an oil rig housing contract and a gas pipeline. Yahoo News (AP), October 12, 2004, summary by Sherldine Tomlinson). Another top PetroVietnam executive arrested in graft
scandal. It was
reported that another top executive of PetroVietnam, the communist nation’s
corruption-plagued oil and gas giant, has been arrested following an
investigation into a large graft scandal. Vu Dinh Chien, the director of
group subsidiary PetroVietnam Gas Processing and Trading Co, was formally
charged by police with "violating regulations on construction and
causing serious consequences". Vu Dinh Chien was the fifth PetroVietnam executive
to have been arrested in connection with a project linking the Bach Ho oil
and gas field off Vietnam's southern coast to Ho Chi Minh
EMBEZZLER LA THI KIM OANH SENTENCED TO DEATH La Thi Kim Oanh, 48, former director of an Agriculture and Rural Development Ministry subsidiary, yesterday was given the death penalty on charge of embezzling assets and opposing State regulations on economic management. Being on the same court, the two former deputy Agriculture Minister, Nguyen Quang Ha, 66, and Nguyen Thien Luan, 62, got three years in prison each for dereliction of duty causing serious consequences. (VNA, 2 Dec 2003, summarized by Hanh Vu)
FORMER VIETNAM MINISTERS ON TRIAL Nguyen Thien Luan, Nguyen Quang Ha, former junior ministers of Agriculture and six other government employees are on trial centered on La Thi Kim Oanh, a director of a company run by the ministry for the charges of embezzlement, abusing power and intentional wrongdoing. The two senior government officials face up to 12 years in prison if found guilty. It’s the second corruption case against senior officials has been televised as the Communist party has made fighting corruption one of its top priorities in an effort to win the confidence of foreign investors. (BBC, 17 Nov 2003, summarized by Hanh Vu).
DEFRAUDING BUSINESSMAN, STATE BANKER EXECUTED The notorious businessman Tang Minh Phung, born in 1957, former director of Phung Co.Ltd, and Pham Nhat Hong, born in 1943, former deputy director of the State run Industrial and Commercial Bank's HCMC branch were executed in HCMC on Friday on charge of defrauding thousands of billions of dong. In March 1997, the HCMC People's Court brought the case to trial with 77 defendants and handed out the death sentences to Phung and Hong and several other defendants. (Saigon Times Daily, 16 Jul 2003, summarized by Hanh Vu).
VIETNAM'S 'GODFATHER' GETS DEATH PENALTY IN CORRUPTION TRIAL Truong Van Cam, 56, known as Vietnam's reigning organized crime boss will face a firing squad after being convicted of murder, bribery and five other crimes in the country's largest-ever criminal trial. 5 other gang members were also given death sentences for murdering 3 people. The trial's three highest ranking Communist Party officials also received their sentences for receiving bribes to help Nam Cam get an early release from a labor camp in the mid 1990s namely Tran Mai Hanh – former head of state radio with 10 year in jail; Pham Sy Chien, former deputy national chief prosecutor, 6 years in prison; Bui Quoc Huy, former vice minister of public security, got four years behind bars for turning a blind eye to Nam Cam's dealings when Huy was the police chief of Ho Chi Minh City. all of them were banned from taking government jobs for up to five years. The case, with a total of 155 defendants, has been viewed as a chance for the government to publicly clean house in a country ranked as one of the most corrupt in the world. (AP, 05 Jun 2003, summary by Hanh Vu).
PM KHAI FIRES OIL COMPANY OFFICIALS Two high-ranking officials in the oil sector were sacked, another received a reprimand but kept his position following a Prime Ministers' decision on which they were charged of mishandling tenders for the controversial Dung Quat oil refinery. The refinery project has been delayed several times since it was first announced in the early 1990s and received another setback last December when the Russian partner pulled out. The Vietnamese Government has decided to construct the refinery on its own. (Vietnam News – 13 May 2003, summary by Hanh Vu).
WAR ON 'DIRTY
MONEY' A draft decree on fighting money laundering says those opening a bank
account worth VND500m. or more, or engage in a cash or stock transaction for
the amount, will be scrutinized for money laundering and the amount bringing
the alarm bell for organizations is VND1bn. The State Bank, with assistance
from the ADB, has time till the fourth quarter of the year, to finalize the
draft for possible promulgation. (VNS, 22 Apr 2003, summary by Hanh Vu). Vietnam
to intensify fight against CORRUPTION. According to reports, Vietnam will intensify the fight of corruption,
and thus severely punishing officials who committed crimes and wrongdoings.
Talking about lessons to be drawn from Nam Cam, Vice Chairman of Municipal
People’s Committee said that he will attach more importance to staff
evaluation, and taking into account both their performance at work. Truong
Van Cam, notoriously known as “Nam Cam,” is the crime boss of an underworld
gang charged with murder, assault, gambling, fraud and bribery. Among those
implicated in the case are 19 government officials, 14 police officers, three
prosecutors and two journalists, including three former senior officials. (Xinhua News Agency, March 10 2003 summary by
Sherldine Tomlinson). TRIAL OF CRIME KINGPIN NAM CAM TO BEGIN The eagerly awaited trial of Vietnam's alleged criminal kingpin Truong Van Cam, or Nam Cam as he is better known, is set to start on Tuesday February 25. The two-month trial, in which he will face seven counts including murder, assault, gambling, organising gambling, bribery, abetting criminals and organising illegal emigration, is the culmination of a year-long investigation. The People's Supreme Court (PSC) has also indicted 155 suspects on 24 charges. The investigators have made a list of Nam Cam's self declared property, which is worth about VND25 billion ($1.6 million). More than 100 suspects, including former officials in the party's central committee, public security, People's Supreme Court and media, are accused of bribery and power abuse. (Vietnam Investment Review - 17-23 Feb. 2003, summary by Hanh Vu).
Vietnam investigates two former vice ministers for corruption . Vietnamese
police are investigating two former agriculture vice ministers in a
corruption case involving a company under the ministry’s management. Nguyen
Thien Luan and Nguyen Quang Ha, and two former deputies in the Ministry of
Agriculture and Rural Development, are under investigation for financial
irresponsibility causing serious consequences. Ha and Luan, who recently
retired from their posts, are the latest senior government officials to be
implicated in a major corruption scandal. Previously, three high-ranking
officials were fired for their involvement with mafia kingpin Nam Cam, who
operated a gambling and a prostitution ring. Nam Cam bribed dozens of police
officers and government officials to operate his illegal businesses, including
gambling dens and karaoke bars, with impunity for nearly a decade. The ruling
Communist Party has made fighting corruption one of its top priorities,
however; few senior officials have been prosecuted or even disciplined for
corruption offences.(Yahoo News (AP),
December 30, 2002 summary by Sherldine Tomlinson). CORRUPT CUU LONG FOOD FIRM BOSS TO WALK DOWN DEATH ROW. Truong Thi Thanh Huong, former director of the State-owned An Giang Food Co. was, last Friday, sentenced to death for having pocketed VND14.2bn ($927.000) and instructed her staff to write false reports and fraud receipts worth more that VND51bn. ($3.5m.). 13 accomplices were imprisoned between 2 and 20 year for both the company and the State treasury's huge losses. (Vietnam News, 02 Dec., 2002, summary by Hanh Vu)
Vietnamese judge says only fraction of corruption
cases go to COURT . According
to reports, corruption in Vietnam is much more serious than indicated by the
small number of cases brought to trial; state controlled media quoted the
country’s top judge as saying. The ruling Communist Party has said fighting
corruption and wastefulness are two of its top priorities, but results so far
have been limited. Corruption is consistently the main source of complaints
from local people when they meet with legislators. The judge urged police and
prosecutors to get tougher on corrupt officials, saying they should be
brought to court, not just face internal disciplinary measures. (San Luis Obispo, November 22, 2002, summary
by Sherldine Tomlinson). Vietnam to continue reform of justice system. The Law Commission of the Vietnamese National Assembly has urged the law enforcement agencies to accelerate the process of judicial reform of building a state governed by the rule of law, according to a report of Vietnam News. "We have to improve the quality of law-related activities, increase the responsibilities of law enforcement agencies, and overcome short-comings and weaknesses," the commission said. Director of the People’s Supreme Procuracy Ha Manh Tri stressed that the country’s law enforcement agencies need further support to cope with the upsurge in corruption, smuggling, economic frauds, drug use, organized crime, traffic accidents and other blights in the country. (Xinhua News Agency, November 15, 2002, summary by Sherldine Tomlinson).
PARTY LEADERSHIP
MEETS TO TAKE STOCK AND PLAN FOR COMING YEAR
To analyse the state and causes of rampant wastefulness and
embezzlement of public funds in public works projects and work out drastic
and effective measures to prevent and curb them is considered one of the
focuses on agenda of the Party Central Committee's seventh plenum which held
in Hanoi yesterday. According to General Secretary Nong Duc Manh, close
monitoring and proper management of economic activities would be crucial measures to reduce capital
embezzlement in public projects and value-added tax (VAT) evasion. (Vietnam
Economic Times, 08 Nov 2002, summary by Hanh Vu). Hanoi, NO BIGGER FISH SEEN NETTED IN VIETNAM MAFIA PROBE. Prosecutions in the largest ever criminal case of Vietnam are expected to reach no higher than three officials already named as suspects. According to deputy national police chief, Major General Nguyen Viet Thanh, the investigation has uncovered all the top officials involved. "I would like to affirm that apart from former deputy public security minister Bui Quoc Huy; former general director of Voice of Vietnam Radio... Tran Mai Hanh and Deputy Chief of Supreme People's Procuracy Pham Si Chien, no high-ranked officials are involved in the case," he was quoted as saying. The aforementioned officials were removed from all party and government posts for their alleged connection with the mafia (Reuters, October 22, 2002, summary by Pavlidis George).
SWEDEN FUNDS VIET
NAM'S SOCIO-ECONOMIC DEVELOPMENT AND ANTI-CORRUPTION PROJECTS Part of the 24.5 million Swedish krona
(2.5 million USA) provided by Sweden in a non-refundable aid will be spent on
a project to assess the current corruption in Vietnam and help the Party and
Government to study anti-corruption solutions in the country. (Vietnam News
Agency, 17 Sep 2002, summary by Hanh Vu). 37 PEOPLE ON TRIAL IN HIGH-PROFILE CORRUPTION CASE. Thirty-seven people, including the head of state-owned enterprise and customs officials, have gone on trial in southern Vietnam. Twenty-five of the defendants are accused of smuggling, which carries a maximum penalty of death, by firing squad. The defendants include Mai Van Huy, director of the state-owned Dong Thap Petrol Trading Co. He is accused of evading import duties by falsely declaring that nearly 46,000 metric tons (50,700 tons) of imported gasoline was re-exported to neighboring Cambodia between 1992 and 2000. Instead, the gasoline was sold in Vietnam, and Huy avoided paying 33 billion dong (dlrs 2.2 million) in taxes, the official said. The defendants also include a journalist charged with attempting to shield Huy. The court has called 40 people to testify, including the former provincial party chief and governor, said the official, who spoke on condition of anonymity. (Yahoo News (Associated Press), May 28, 2002, summary by Sherldine Tomlinson).
FORMER PRIME MINISTER LINKED TO SCANDAL According to reports, the former Vietnamese Prime Minister VO Van Kiet has been linked to a major corruption scandal. State-run newspapers say officials are trying to discover whether Mr Kiet was involved in the decision to release a suspected crime boss, Nam Cam, from a labour camp in 1997. Since Nam Cam was re-arrested late last year, a string of senior policemen and officials including a National Assembly member have been arrested on suspicion of taking bribes. Mr Kiet said he knew nothing about the release. Correspondents say the new allegations against Mr Kiet, a key reformer, may be politically motivated. They say they could be an attempt to discredit Mr Kiet's reformist allies, amid speculation that the position of Prime Minister could become vacant if Phan Van Khai does not serve a full five-year term. (BBC News, May 20, 2002, summary by Sherldine Tomlinson).
THREE
OFFICIALS BARRED FROM VIETNAM POLL. Three senior officials of the Communist
Party in Vietnam have been disqualified from standing as candidates in the
national elections. Two of them, Le Cong Minh and Tran Trung An have been barred
on grounds of immoral behaviour. According to National Assembly officials,
the action reflected the Communist Party's determination to fight corruption.
(BBC News, May 16, 2002, summary by Pavlidis George). CORRUPTED LEADERS OF MUONG TE DISTRICT ON TRIAL. At the People's Court of Lai Chau Province (court of appeal), the accused, who got involved in embezzling 3.5 billion dongs (Vietnam's money, equal to 233,000 US$) in the Economic and Social Development Project which they received as "guest reception fee" from this Project, were brought to trial for their corruption activities. The accused were government and provincial officers including: Tran Hung Son (Director of the Construction and Development of Minorities and Mountain Areas), Nguyen Van Minh (Vice-Director), Nguyen Manh Cuong, Tran Trinh Hoan (treas. of Hoaban I Construction Enterprise), Truong Tien Dat (accountant) and Tran Van Thong. In the preliminary trials earlier in November, three people gave appeals: Nguyen Thanh Binh, Nguyen Van Hoan and Vu Quang Long however the judges were still determining their use of 1.3 billion dongs in gifts to some govt. personnels in this appeal court, 25th March. Translated by Trung Le From VnEpress Net http://vnexpress.net/Vietnam/Phap-luat/2002/03/3B9BA62F/
PROTEST OVER LAND DISPUTE. State expropriation of land for infrastructure and development projects is often surrounded by allegations of corruption. In Hanoi, about 20 people, mainly farmers, have protested against official corruption outside the country's National Assembly. Their land has been confiscated by local authorities. One woman told a reporter she had been given about $40 per square metre in compensation for her land, which was then sold on for more than $300 per square metre. Police didn't attempt to move the protestors away. (Source: BBC News, December 5, 2001, summary by Pavlidis George).
Hanoi, SALARY REFORM TO FIGHT CORRUPTION. The Government of Vietnam is preparing a comprehensive salary review for 2002. According to Deputy Prime Minister Nguyen Tan Dzung, the reform is designed to be an effective anti-corruption measure. Furthermore, the Government will try to step up the implementation of regulations on democracy and transparency in State agencies. Other administrative measures such as the declaration of State employees' property and their engagement in business activities, and the establishment of administrative punishment regulations are also under consideration. (Source: Asia Pulse, November 28, 2001, summary by Pavlidis George).
PREMIER BLASTS CORRUPT OFFICIALS, CALLS FOR REFORM Phan Van Khai, Prime Minister, believes bureaucratic inadequancies and cadre corruption to be key elements in deterring administration reform and economic construction. Organization of the state mechanism to define functions and responsibility, reform laws, and eliminate intermediate levels of power and administrative procedure must be urgently dealt with to restore order and discipline. Most cadre and party members have good morals, experience, and knowledge to carry out their job well, however. A section is degenerate, authoritarian, corrupt, and lacks responsibility. Measures such as more power to all ministries, sectors, and localities; official appointment for a fixed term only; current policy reviews; loan grants to small businesses and for poverty alleviation; encouraging exports and closely controlling imports; capital construction progress review; rearrangement of state enterprises; pushing back social evils such as drug addiction; and investigating and prosecution of illegal cases of labor export have been requested by the Prime Minister in order that the National Assembly may appropriately deal with the current socioeconomic situation. (BBC Monitoring Service, June 4, 2001, summary by Marg Reynolds).
ANGRY REACTIONS TO BEING CALLED ‘THE MOST CORRUPT COUNTRY IN ASIA. Phan Thuy Thanh, Foreign Ministry spokeswoman, stated a recent survey by the Political and Economic Risk Consultancy has grossly overstated the scale of the corruption problem in her country. However, PERC acknowledged that although effective action has not been taken by Vietnam’s communist authorities, they recognized the problem, unlike some other countries in the region. (The Age.com, Mar. 22, 2001, summary by Marg Reynolds). CORRUPTION
SURVEY RANKS VIETNAM, CHINA, INDIA AS 3 MOST CORRUPT COUNTRIES The Political and Economic Risk
Consultancy (PERC), based in Hong Kong, recently completed this study. See Asia link for details. Corruption found rife in Communist Party. An internal inspection within Vietnam's Communist Party found that more than 40% (69,000) of party members, including senior government officials, were guilty of corruption over the past five years. The findings were released at a two-day national conference of party inspectors. The review found that the main problems were embezzlement and financial mismanagement. (Seattle Post-Intelligencer, February 15, 2001, summary by Hema Kotecha). Vietnam
Officials To Stand Trial For Car Smuggling HO CHI MINH CITY, 43 people, among them 21 customs officials, are standing trial for car smuggling. They are accused of bribery, abuse of power, smuggling and falsifying government documents. One of the involved is Pham Ngoc Lam, businessman. He allegedly worked with customs officials, police officers and company executives to smuggle 170 cars worth 53 billion dong ($1=VND14,128) into Vietnam during 1994 to 1997. Lam is said to have paid VND3.4 billion in bribes to customs officials according to a report from Thanh Nien newspaper.(DJ News Wire, Sept. 11, 2000, summary by Claudia Hüppmeier)
Coping with Corruption. Article about corrupt practices. International Commentary And Stalled Economic Reforms By BARRY WAIN, (See item 14,
VIET NAM:
AUDITING FIRM AWARDED LARGE ADB CONTRACT COVERING SIX PUBLIC ENTERPRISES The Asian
Development Bank (ADB) has awarded the first contract to provide
restructuring assistance to six State-owned enterprises to auditing firm
Grant Thornton Vietnam (GTV). This contract, one of the largest consultancy
contracts ever awarded in Vietnam, involves a financial audit, restructuring
plans and drawing up business strategies to hasten equitization of three
State-owned enterprises. It will also involve a similar exercise for three
State-controlled joint-stock companies, to pave the way for listing on
Vietnam´s stock exchanges. GTV won the ADB contract by tender process against
four of the ´Big Five´ international accounting companies, according to Asia
Pulse. "We´ve already had practical experience of working with
Vietnamese companies about to be equitized," said GTV´s HCMC partner Ken
Atkinson. "In fact, we have been already doing it on a semi-commercial
basis in HCMC with local ministries." Atkinson added that GTV´s team
comprises eleven international and eight Vietnamese consultants. The
12-month contract is part of the ADB´s loan of over US$100 million for
Vietnam´s renovation of State-owned enterprises and corporate governance
program. Three more batches of State-owned companies, reaching a total of 20,
are in the pipeline for more contracts to go out for tender this year. Overall,
Vietnam wants about 100 State-owned companies to undergo the process with
funding from several donors. August 10, 2000. http://www.e-topics.com/index.asp?layout= topic_story&UserID=199912221910540.4592554&topic= c0810075.4wn&date=8%2F11%2F00&display= Accounting+News
Newsedge (Asia Intelligence Wire), 199912221910540.4592554&top
VIETNAM: OFFICIAL WARNS POLITBURO ON CORRUPTION http://support.casals.com/aaaflash1/busca.asp?ID_AAAControl=2987 BBC, August 24, 2000 http://news.bbc.co.uk
The Index of Economic Freedom (by Driscoll-Holmes-Kirkpatrick) for 2001 places Vietnam in the “Repressed” category with a rank of 144 (Ranks range from 1 for Hong Kong to 155 for North Korea, Wall Street Journal, Nov. 1, 2000). H. D. Vinod’s trimmed correlation analysis indicates that countries free from economic regulation are less corrupt. After allowing for some exceptions by 20% trimming, the correlation is near 0.9. |
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Design:
Theo den Brinker |
Copyright:
Hrishikesh D. Vinod 2000 |
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