Doan Van Kien, Chairman of the Vietnam Coal and Mineral Group (Vinacomin) has resigned in a letter to Prime Minister Nguyen Tan Dung.

Vinacomin’s Chairman Doan Van Kien.

Le Tuan Minh, Vinacomin’s vice party secretary, confirmed the information to VNExpress online newspaper. However, an official from the government’s office said that the letter has not reached the office.

It follows the issuing, earlier this month, by Party Central Inspection Committee, of a formal warning to Kien for nepotism. They also proposed his dismissal.

Specifically he is charged with signing, and asking subordinates to sign, a decision permitting Trade and Service Investment JS Company, where his younger brother Doan Van Thuc holds a deputy director post, to mine minerals at Vinacomin’s mines without licences.

Kien was also criticised for poor management, which has led to a lack of control over coal mining in recent years.

It is said that Kien also breached government’s regulations on project management and that his irresponsibility led to Vinacomin making losses in a deal with Quang Ninh Province Industrial Development JS Company. The company is alledged to have mined and traded millions of tons of coal illegally.

Prior to his time with Vinacomin, Kien also received a Party warning when he was general director of the Vietnam Coal Corporation in 2001. VCC was found to have violated Government rules on borrowing foreign capital and paying foreign debts as well as illegally trading in foreign currencies.

Vinacomin is a state-owned conglomerate uniting several dozen smaller companies in the mining sector.

VietNamNet/VNE/TP