Dinh La Thang, a Politburo member and Secretary of the Ho Chi Minh City Party Committee, has received an official warning and has no longer been part of the Politburo of the Party Central Committee for his past financial wrongdoings as head of the National Oil and Gas Group (PetroVietnam).

Secretary of the Ho Chi Minh City Party Committee Dinh La Thang

The disciplinary measures against Thang were announced at the third working day of the 12th Party Central Committee’s fifth session on May 7 under the chair of Party General Secretary Nguyen Phu Trong.

The Central Committee reviewed a Politburo report on the punishment to be meted out to Thang, which was presented by Tran Quoc Vuong, a Politburo member, Secretary of the Party Central Committee and Chairman of the Party Central Committee’s Inspection Commission.

The Committee concluded that despite 35 years of working and contributing to PetroVietnam, as well as his service rendered in other posts, Thang had still committed “very serious wrongdoings and violations in management” as a member of the 10th Central Committee of the Communist Party of Vietnam, Secretary of the Party Committee and Chairman of the Board of PetroVietnam from 2009-2011.

It said the wrongdoings and violations have hurt the reputation of Party organisations that he was a member of, his personal reputation and caused a loss of confidence among the people and other Party members. These factors have influenced the decision on his punishment, the committee added.

Up to 90 percent of the meeting’s participants voted yes on the punitive measures proposed for Thang.

Thang, 57, took up his current post as Secretary of the HCM City Party Committee in February last year. He is a member of the 10th, 11th and 12th Central Committee of the CPV and was a member of the 19-member 12th Politburo of the CPV. He was also a member of the 11th and 13th National Assembly of Vietnam.

Before becoming the Minister of Transport in August 2011, he was Chairman of PetroVietnam, Deputy Party Secretary for Thua Thien-Hue province (2003-2005) and Chairman of Song Da Corporation (2001-2003).

At its 14th meeting from April 24-26, the Party Central Committee’s Inspection Commission decided to consider disciplinary action against seven former top executives of PetroVietnam, including Dinh La Thang.

The Commission found that the group’s Party Committee Standing Board had been negligent in advising the PetroVietnam Party Committee on a 2009 resolution that approved illegal contract packages, and a 2011 resolution on investing in OceanBank, contrary to the Law on Credit Institutions, which resulted in a loss of 900 billion VND (39.59 million USD), including 800 billion USD (35.19 million USD) for OceanBank.

The Commission asked the Party Committee of the Central Business Bloc to take quick disciplinary action against the PetroVietnam Party Committee’s Standing Board.

It found that Thang bore prime responsibility for resolutions and wrongdoings by the Party Committee Standing Board and the Member Council of PetroVietnam in 2009-2011.

He was found to have violated regulations of the group’s Board of Directors by signing an agreement on contributing 20 percent and more of OceanBank’s capital before getting approval for the move from the Board of Directors.

Thang was also held responsible for the Member Council’s resolutions authorising bidding packages in violation of Government decrees and advising the Prime Minister to approve many bidding packages that failed to meet legal regulations.

He was also found responsible for violations of the Law on Bidding related to the engineering, procurement and construction contract for Dung Quat Biofuel Plant, as well as low investment efficiency in a number of projects, including the Dinh Vu Polyester manufacturing plant and several bio-energy projects.

VNA