The Party Central Committee’s Inspection Commission has proposed disciplinary action be taken against Ho Chi Minh City Party chief Dinh La Thang for his role in the wrongdoings of a state-run firm during the 2009-11 period.
Vietnam’s Political Bureau and the Party’s Central Committee should consider proper discipline against Thang, former secretary of the Party Committee and former chairman of the member council of the National Oil and Gas Group (PVN), the commission said in a statement on Thursday.
Thang is now a Politburo member and Secretary of the Ho Chi Minh City Party Committee.
The inspection commission convened for their 14th meeting from Monday to Wednesday, during which it decided that the negligence and irresponsibility of PVN’s Party Committee Standing Board from 2009-15 led to serious violations of Party and legal regulations.
According to the commission, the Standing Board was negligent in advising the PVN Party Committee on a resolution in August 2009 that led to the approval of multiple illegal contract packages.
The board also allowed PVN’s member council to issue a separate resolution in May 2011 to invest in OceanBank, a violation of the Law on credit institutions.
The commission also noted that the Standing Board was irresponsible in its use and management of capital, assets, and investment, resulting in total investment losses of VND900 billion ($39.59 million), with VND800 billion ($35.19 million) lost in the OceanBank deal alone.
Dinh La Thang, as the then-PVN secretary of the Party Committee and chairman of the member council, bears the main responsibility for the issuance of the two resolutions and other wrongdoings during the 2009-11 period, the commission said.
Thang was also responsible for the member council’s issuance of resolutions and decisions relating to the authorization of big bidding packages violating government related decrees. He was also said to have advised the Prime Minister to designate various bidding packages that failed to meet legal regulations.
He was found to be responsible for violating the Law on bidding in two situations involving PVN subsidiaries -- PVC and PTSC, relating to an Engineering, Procurement and Construction (EPC) contract for Dung Quat Biofuel Plant, as well as a low investment efficiency in a number of projects, including the Dinh Vu Polyester manufacturing plant and bio-energy projects.
With OceanBank, Thang violated the working regulations of the PVN board of directors by signing an agreement to contribute at least 20 percent of OceanBank’s capital before receiving approval from the board of directors.
In Thursday’s statement announcing their request for disciplinary action against Thang, the Inspection Commission also announced actions against four former executives of PVN for serious legal violations that caused “great economic losses and negatively affected the prestige of the Party Organization and related individuals.”
The former PVN executives named in the announcement included Phung Dinh Thuc, former secretary of the Party Committee; Do Van Hau, former general director; Nguyen Quoc Khanh, former deputy director general; and Nguyen Xuan Son, former secretary of the company’s Party Committee.
Thuc was removed from his position of secretary and Hau was dismissed from his deputy secretary position of the PVN Party Committee for the 2010-2015 period.
Son was expelled from the Party, whereas Khanh received a warning.