Vinalines’ former executives prosecuted

May 21, 2012 | 07:00
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Vietnam’s largest national-flag shipping corporation’s former senior executives have fallen under the government’s axe for mismanagement resulting in heavy losses.
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Duong Chi Dung, chief of the Ministry of Transport’s (MoT) Vietnam Maritime Department and former chairman of the state-owned Vietnam National Shipping Lines (Vinalines), was prosecuted last week for intentionally breaking the state’s regulations on economic management, causing serious consequences at the firm.

The Ministry of Policy’s investigation authority also issued an order to put Dung under temporary detention for further investigation, according to the government’s official information portal VGPNews.
Dung was appointed as Vinalines’s board chairman and general director in early 2007. In July 2011, he left the seat of the general director and only acted as chairman of Vinalines’ member council, which was formerly the management board. In February this year, Dung was promoted to Vietnam Maritime Department’s director.

The portal also reported that Mai Van Phuc, deputy director of the MoT’s Transport Department and Vinalines’ former general director, and Tran Huu Chieu, Vinalines’ deputy general director, were prosecuted and ordered to be in temporary custody due to the same allegation. According to the Government Inspectorate, Vinalines lost VND1,685 billion or $81 million at the current exchange rate in the 2009-2010 period alone.

From 2006 to 2010, Vinalines pumped VND20 trillion or $961 million at current exchange rate to see the capacity of its fleet expanded by an additional nearly one million dead weight tonnages, raising total transportation capacity to about 2.9 million dwt. The capacity expansion was 300,000dwt higher than the plan approved by the government for the  2006-2010 period.

By Nhu Ngoc

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