Vietnam court upholds death for former shipping firm officials

>> Vinalines verdict set for May 7

The hearing was opened by the court on April 22 for Dung, 57, and the eight who appealed the sentences handed down to them at the first instance trial in December 2013.

Dung and his accomplices were found causing a loss of over VND366 billion (US$17.4 million) to the state budget as of May 2012, through Vinalines’ purchase of an old floating dock at $9 million from Russia in 2008.

The loss included repair fees, storage expenses, transportation, and other expenditures.

Dung and Phuc were also found guilty of receiving VND10 billion ($474,000) each from the kickback of $1.666 million given by a Singaporean broker, AP Company, through which Vinalines bought the old dock.

Court documents show that after the deal, AP transferred $1.666 million as a kickback to Vinalines through the bank account of Phu Ha Co Ltd, whose director is Tran Thi Hai Ha, the younger sister of Tran Hai Son, former CEO of the Vinalines Shipyard Co Ltd.

Son told investigators that Ha changed the amount into over VND28 billion after the transfer.

The man said that he then gave Dung and Phuc VND10 billion each. Son took the remaining after giving Ha VND2 billion and Tran Huu Chieu, former deputy CEO of Vinalines, VND340 million.

At their first instance trial on December 16, 2013, both Dung and Phuc were sentenced to death on charges of embezzlement and intentionally violating state regulations on economic management, causing serious consequences.

At the appeal trial, Tran Hai Son, former CEO of Vinalines Shipyard Co Ltd and one of the defendants in the case, consistently told the jury that he had given Dung and Phuc VND10 billion each as part of the above $1,666 million kickback.

Both Dung and Phuc, 57, rejected Son’s allegation, insisting that they received no kickback related to the deal.

On April 29, the prosecutor continued to propose that the court uphold the death sentences for both, saying that their offenses were very serious and there were no grounds for giving them a commutation.

On April 23, lawyer Tran Dinh Trien, who defended Duong Chi Dung in the trial, told the jury that he had obtained an affidavit dated April 16, 2014 by Goh Hoon Seow, the managing director of AP.

In the sworn testimony, Goh said he had never contacted Dung and Phuc or discussed with them the sale of the dock.

The Singaporean man also said that he negotiated with Son, 54, and others who represented Vinalines in the deal, but did not say anything about giving a kickback to the Vinalines side.

He added that Vinalines paid $9 million for the old dock through an L/C, and $1.666 million was a part of the amount and expected to be used for settling expenses related to exporting the old dock from Russia to Vietnam.

On April 28, the jury released documents provided by Russia in relation to the case.

These materials, already translated into Vietnamese, had been sent to the Vietnamese Supreme People’s Court by the Department of Home Affairs of the Russian city of Nakhodka, through the mutual judicial assistance in criminal matters between the European country and Vietnam.

Among these materials was a document containing the terms of contract No. 01-08 between Russia’s Nakhodka Ship Repair Yard and Singapore-based AP Company.

According to the document, AP bought the old dock at only $2.3 million and then sold it to Vinalines for $9 million.

However, the prosecutor at court affirmed that both Goh’s affidavit and the Russia-provided materials have caused no change to the nature of the case as well as the indictment.

In the purchase of the old floating dock, Dung and his accomplices did not comply with bidding regulations, the appeal court said on Wednesday, adding that only Dung and Phuc had the right to decide whether the old dock would be purchased. 

There are enough grounds to conclude that Dung and Phuc had reached an agreement on receiving a part of the kickback and that each of them received VND10 billion, judge Nguyen Thanh Son, chairman of the appeal trial, said.

The judge also said it is proper for the prosecutor at court to propose the jury uphold the death sentences for Dung and Phuc.  
      
Therefore, the jury decided to uphold the death sentences for the two former Vinalines officials. 

Besides Duong Chi Dung and Mai Van Phuc, the court announced the sentences for the other seven defendants as follows: