Five prosecuted for massive losses at state-run firm

PetroVietnam Petrochemical and Textile Fibre Company (PVTex). - Photo vneconomictimes.com

The suspects include Trần Trung Chí Hiếu, former CEO of PetroVietnam Petrochemical and Textile Fibre Company (PVTex), a joint project between PetroVietnam and Việt Nam Textile and Garment Group (Vinatex); Vũ Đình Duy, former director-general of PVTex; Vũ Phương Nam, former chief accountant; Đào Ngọ Hoàng, former head of the Trade Department, and Đỗ Văn Hồng, former chairman and general director of the Kinh Bắc Petroleum Construction and Investment Joint Stock Company, a subsidiary of PetroVietnam.

They will be charged with intentionally acting against State economic management regulations and causing serious consequences, based on Article 165 of the Penal Code.

Four of the accused were placed in temporary detention.

The Investigative Police Agency is carrying out further investigations into the case while taking measures to retrieve State assets, in line with related laws.

The Government Inspectorate concluded, last October, that the investment in the construction of the Đình Vũ Polyester Manufacturing Plant in the northern port city of Hải Phòng by PVTex, with a total investment of nearly US$325 million, caused an estimated loss of over VNĐ1.47 trillion ($62.2 million), after three years of operation from 2012 to 2014. The plant closed in 2015.

The inspectors proposed that Prime Minister Nguyễn Xuân Phúc should instruct related ministries and agencies, to seek ways of reclaiming VNĐ54 billion ($2.4 million) and over $22,000 of losses, due to inaccurate and duplicate payments.

They also proposed handing over the case documents to the Ministry of Public Security for further investigation.