Police from the Ministry of Public Security today released a special wanted notice for Duong Chi Dung, head of Vietnam Maritime Administration, who has not been found since the afternoon of May 17 when his first wanted notice was issued.

Duong Chi Dung

Dung received an indictment and arrest warrant for economic offenses committed during the time he was chairman of the infamous state giant Vinalines.

The police unit fighting against corruption criminals (C48), and the general police department on crime prevention and suppression under the Ministry of Public Security also worked with the media today to announce initial results from the investigation of Vinalines’ wrongdoings.

Speaking at the meeting, colonel Tran Duy Thanh, head of C48, said in case Dung flees to another country, Vietnamese police will work with Interpol to issue an international wanted notice.

Thanh said as early as June this year, police and investigators began their inspection to clarify Vinalines’ wrongdoings in buying and repairing the 83M floating dock.

>> Vinalines officials prosecuted for embezzlement

Specifically, police identified that Tran Hai Son, CEO, and Tran Van Quang, head of the planning department, and some relevant officials at the Vinalines Shipyard had colluded with Tran Ba Hung, an official of Hyundai Vinashinm and Pham Ba Giap, director of Nguyen An – Nha Trang Co, to fake two contract files to increase the cost of welding steel in the account books by VND10,000 per kilogram compared to the actual price of the material.

They also colluded with each other to falsely increase the volume of welding steel in the books to appropriate the different amount.

As the fraud was successfully completed, the Vinalines Shipyard officials shared VND2.54 billion between them, while Son appropriated VND900 million, and the remainder came to Quang.

The four were arrested and indicted in early February, and all later admitted to the police their embezzlement. The arrestees have so far returned VND1.2 million from what they hadearlier appropriated.

The total damage they caused is VND2.9 billion, C48 said.

Wrongdoings under Dung’s leadership

Thanh said after the inspection of the above wrongdoings, police and investigating authorities also looked into the purchase of the 83M floating dock and the approval of a project to build a shipyard in the South of Vietnam.

>> Inspectors find many wrongdoings at Vinalines

Accordingly, on June 27, 2007, Dung, who was then Vinalines’ chairman, approved the project to construct the shipyard with a total investment of VND3.85 trillion, including a bidder package to install a floating dock. The approval was made when Vinalines had yet to receive an approval from the Prime Minister.

On July 17, 2008, Dung continued to approve the report submitted by Vinalines CEO Mai Van Phuc to increase the total investment to VND6.48 trillion.

Earlier in October 2007, Dung green-lighted a plan to buy the 83M floating dock at $14.13 million.

However, in February 14, 2008, Dung gave the proposal made by Tran Huu Chieu, Vinalines deputy CEO, to adjust the floating dock purchase. Consequently, the real expense for the dock, which now has yet to meet requirements to be licensed, rose to as high as $24.3 million.

A number of violations

Inspection authorities said Dung’s wrongdoings breached the Prime Minister’s decision, and the laws on bidding and investment.

To date, the total money Vinalines has spent on buying, transporting, and repairing the floating dock, plus bank interests and other expenses, is around VND480 billion, or $23.04 million.

The floating dock has been sitting dormant over the last four years, causing huge waste, inspectors said.

Vinalines chiefs have approved the purchase without the approval from the Ministry of Transport and the Prime Minister.

Meanwhile, as the floating dock was purchased while Vinalines had yet to receive land from Ba Ria – Vung Tau provincial authorities to build its shipyard, the company had to waste another VND100 billion in hiring a place to dock it and pay bank interests.

Dung also acted against government regulations when he gave a go-ahead for the purchase of the floating dock that was built in 1965 and exceeded the maximum age of equipment to be licensed.

Source: Tuoi Tre