PVC trial ends in life sentence

Defendant Trinh Xuan Thanh got the highest sentence of life imprisonment

Conclusions of the court

This morning, after 14 days of trial and deliberation, the Hanoi People’ Court sentenced Dinh La Thang, Trinh Xuan Thanh, and 20 other defendants charged with “intentionally violating state regulations on economic management and causing serious consequences” (Article 165 of the Criminal Code) and “asset embezzlement” (Article 278 of the Criminal Code) at Vietnam National Oil and Gas Group (PetroVietnam–PVN) and PetroVietnam Construction Corporation (PVC).

The court sentence was as follows:

Defendants Sentences

Dinh La Thang (former chairman of PetroVietnam’s Board of Directors)

13 years of imprisonment

Trinh Xuan Thanh (former chairman of the Board of Directors and general director of PVC)

Life imprisonment

Phung Dinh Thuc (former general director of PetroVietnam)

9 years of imprisonment

Nguyen Quoc Khanh (former deputy general director of PVC)

9 years of imprisonment

Nguyen Xuan Son (f

ormer deputy general director of PVC)

9 years of imprisonment

Ninh Van Quynh (former chief accountant of PetroVietnam)

7 years of imprisonment

Vu Duc Thuan (former general director of PVC)

22 years of imprisonment

Vu Hong Chuong

3 years of suspended imprisonment

Nguyen Manh Tien

6 years of imprisonment

Tran Van Nguyen

30 months of imprisonment

Nguyen Ngoc Quy

6 years of imprisonment

Nguyen Anh Minh

16 years of imprisonment

Pham Tien Dat

4 years and a half of imprisonment

Bui Manh Hien

10 years of imprisonment

Nguyen Thanh Quynh

8 years of imprisonment

Le Dinh Mau

4 years and a half of imprisonment

Le Thi Anh Hoa

3 years of suspended imprisonment

Nguyen Duc Hung (is released right now)

3 years of suspended imprisonment and 5 years of probation

Le Xuan Khanh (is released right now)

3 years of suspended imprisonment

Truong Quoc Dung

17 months of imprisonment (since September 2016)

Damaged trillions dong

The court stated that this was an esspecially serious case of embezzlement. Almost all defendants played an important role in the state-owned enterprises and played key roles in projects that were of strategic importance to the nation, delaying them and causing trillions of dong in losses.

Specifically, PetroVietnam was put in charge of the Thai Binh 2 thermal power plant project that carried total investment capital of VND31.5 trillion ($1.4 billion). Without any bidding procedures, on June 18, 2010, Dinh La Thang signed the resolution to assign PVC the EPC package in the form of a bidding appointment.

Despite being the official contractor to implement Contract No.33 since October 11, 2011, PetroVietnam paid advances of over $6.6 million and VND1.3 trillion

($58 million). These amounts were spent for the wrong purposes.

Up to November 22, 2017, nearly VND1.1 trillion ($49 million) has been retrieved and VND119 billion ($5.3 million) was declared lost.

Moreover, the project has been delayed for 18 months, causing damages of millions of dollars.

As a result, for “intentionally violating state regulations,” Dinh La Thang and Trinh Xuan Thanh have to pay a total of VND60 billion ($2.65 million) in damages. Defendants Phung Dinh Thuc, Nguyen Quoc Khanh, Nguyen Xuan Son, and Vu Duc Thuan face a financial penalty of VND30 billion ($1.32 million) in total.

Nguyen Ngoc Quy, Ninh Van Quynh, and Nguyen Manh Tien face damages of VND18 billion ($0.8 million). The other defendants have to pay a total of VND11 billion (0.5 million).

For the charge of “asset embezzlement,” ten defendants have to pay a total of VND13 billion ($0.6 million) in damages to Vung Ang-Quang Trach Project Management Unit. Trinh Xuan Thanh has returned VND2 billion ($0.09 million) of the VND4 billion ($0.18 million) financial penalty issued. Besides, Vu Duc Thuan has returned VND800 million ($35 thousand) and Nguyen Anh Minh has returned over VND3.6 billion ($159 thousand).

Ten days of trial

During the ten-day trial, the procuracy confirmed that Dinh La Thang abused his position to appoint PVC as the general contractor of the Thai Binh 2 thermal power plant project, while the company was not qualified. He approved illegal advance payments of over VND1.1 trillion ($49 million) which was then used for the wrong purposes.

During the trial, Thang only confirmed that he was too drastical and hasty at directions, pushing his subordinates to commit violations. He confirmed his responsibilities as PetroVietnam’s head, but he denied all testimonies of his directions related to EPC Contract No.33 for PVC and advance payments of over $6.6 million and VND1.3 trillion ($57.3 million) for PVC.

Trinh Xuan Thanh did not plead guilty either, only confirmed his responsibilities as PVC’s head. He affirmed that he did not know about EPC Contract No.33 and the advance payment of VND1.1 trillion ($49 million). Although other defendants and a witness said that Thanh received money. Thanh denied allegations related to the embezzlement of VND13 billion ($0.57 million) and taking over VND4 billion ($176,000).

The procuracy decided against Thanh. Moreover, the court also found that he had run away and gave false testimony during the investigation.

Different to the three people above, the other defendants pleaded guilty and requested the court to be lenient.