In an announcement released Monday, the Communist Party Inspection Committee stated that there are signals of criminal violations committed by Vinashin Chair Pham Thanh Binh and some Vinashin officials.

Vinashin Chair Pham Thanh Binh.

VietNamNet Bridge – In an announcement released on July 12, the Communist Party Inspection Committee stated that there are signals of criminal violations committed by Vietnam Shipbuilding Industry Group (Vinashin) Chair Pham Thanh Binh and some Vinashin officials.

Vietnam News Agency quoted the announcement as saying that Binh made serious mistakes and committed grave violations in managing Vinashin.

According to the committee, Binh was irresponsible in raising capital, managing and using state capital in projects, as well as in upgraded and newly built industrial zones and shipyards. The former Vinashin Chair also approved the purchase of old ships, which resulted in heavy losses.

Binh broke State regulations on designing, approving and organizing tenders for projects invested by Vinashin and its subsidiaries, the report averred. Binh set up many subsidies and joint-stock firms that had no capability in finance and business. He also appointed his son and brother as representatives of state capital and also to positions at Vinashin subsidiaries, thus violating State rules.

“Pham Thanh Binh’s violations were caused by the lack of a sense of responsibility, intentionally breaking the law with signs of self-interest, causing serious political, economic and social consequences. For many years, Vinashin didn’t truthfully report its financial situation to the Government. The aftermath of Pham Thanh Binh’s mistakes and violations is risk of bankruptcy, causing heavy losses to the State,” the report detailed.

According to the Communist Party Inspection Committee, Binh’s mistakes and violations are very serious and he must be disciplined. The committee has discovered evidence of criminal violations so it will transfer the case to investigating agencies for further inspection.

This is the second announcement by the Communist Party Inspection Committee on Vinashin. In the first report, released on July 5, the committee proposed only to punish Binh. The second announcement delivers a much tougher indictment of Binh.

In a newspaper interview on July 7, Vinashin General Executive Director Tran Quang Vu admitted that the group’s current difficulties resulted from mistakes in management and ambitions to expand. Vu added that Vinashin officials were “dizzy” from the Communist Party Inspection Committee’s proposal of punishment.

Having formerly been seen as the leader of Vietnam’s heavy industry and expected to become the world’s top shipbuilder, Vinashin has gradually fallen into huge debts caused by bad investment decisions.

Vinashin’s total assets reached 90 trillion dong, with chartered capital of around 9 trillion dong, but its total debt is over 80 trillion dong (over $4 billion). After being restructured, part of Vinashin’s debt, around 20 trillion dong, will be transferred to PetroVietnam and Vinalines.

PV