A Hanoi appeal court trying a corruption case involving death-sentenced Duong Chi Dung, ex-chairman of the state-owned Vietnam National Shipping Lines (Vinalines), released on Monday documents provided by Russia showing that Vinalines bought an old floating dock at a cost nearly four times its original price of over US$2 million. 

>> Lawyers demand Vietnam shipping firm graft re-probed as affidavit surfaces >> Death-sentenced ex-chairman of Vietnam shipping firm pleads not guilty to graft charge>> Not enough proof for bribery confessed by ex-Vinalines boss The ongoing appeal trial was opened on April 22 for Dung, 57, and eight others who appealed their sentences handed down to them at the first instance trial in December 2013. Dung and his accomplices were found to cause a loss of over VND366 billion ($17.4 million) to the state budget as of May 2012, through Vinalines’ purchase of an old floating dock at $9 million in 2008. The loss included repair fees, storage expenses, transportation and other expenditures. Both Dung and Mai Van Phuc, former CEO of Vinalines, were sentenced to death on charges of embezzlement and intentionally violating state regulations on economic management, causing serious consequences following the purchase. At yesterday’s session of the appeal trial, the jury announced materials related to the case that the court had received from Russia through the mutual judicial assistance in criminal matters between the European country and Vietnam. The court then referred the new materials to lawyers for reference. 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.     They include a series of minutes of interrogation of Russian people involved in the scandal, documents related to the mutual judicial assistance between Russia and Vietnam, and others. Notably, among these materials is a document containing the articles of contract No. 01-08 between Russia’s Nakhodka Ship Repair Yard and Singapore-based AP Company represented by Goh Hoon Seow, AP’s managing director. According to the document, AP bought the old dock at only $2.3 million and then sold it to Vinalines for $9 million. At yesterday’s session, Tran Hai Son, former CEO of Vinalines Shipyard Co Ltd and one of the defendants in the case, continued to affirm that he had given Dung and Phuc VND10 billion ($474,000) each as part of the $1,666 million kickback allegedly paid by AP to Vinalines officials following the purchase of the old dock. Son told investigators that after the purchase of the dock, AP Company transferred $1.666 million to the bank account of the Phu Ha Co Ltd, whose director is Tran Thi Hai Ha, Son’s younger sister. He said that he took VND6 billion ($284,600) himself and gave Ha VND2 billion ($94,900) and Tran Huu Chieu, former deputy CEO of Vinalines, VND340 million ($16,130). Meanwhile, both Dung and Phuc rejected Son’s allegation, insisting that they received no kickback related to the deal. As previously reported, lawyer Tran Dinh Trien, who defends Duong Chi Dung in the appeal trial, told the jury that he had obtained an affidavit dated April 16, 2014 by Goh Hoon Seow. In the sworn testimony, Goh said he had never contacted Dung and Phuc or discussed, whether directly or indirectly, with them the sale of the dock. Goh confirmed that during the process in which he negotiated with Tran Hai Son and others who represented Vinalines in the deal, the Singaporean man did not say anything about giving a kickback to the Vinalines side. The Singaporean businessman said 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.Ex-deputy CEO of Vinalines summoned Yesterday, the court summoned Bui Van Trung, a former deputy CEO of Vinalines, to question him about some issues related to the case. Trung is now the chairman of the Board of Members of Hi-Tech Goods Transport Co Ltd, a joint venture between Vinalines and its foreign partners. Trung told the court that he did not know about AP offering to sell the old dock to Vinalines.

He added that he did not take part in the course of selling and buying the old floating dock, but he engaged in appraising the dock as the deputy head of the appraisal team. Trung admitted that he attended a meeting of the Board of Management of Vinalines to consider the purchase of the old dock, adding that all the board members were present at the meeting. Meanwhile, Chieu, deputy CEO of Vinalines, previously told investigators that Trung took part in the purchase right from the start. The appeal hearing continues today, April 29.

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