Four former senior members of the Petrovietnam Petrochemical and Textile Fiber JSC (PVTEX) will be tried for allegedly violating State regulations on economic management on August 28.

The Dinh Vu polyester fibre plant, which was invested by PVTEX

The Hanoi People’s Court said the defendants are Tran Trung Chi Hieu (born 1963, former Chairman of the Board of Directors of PVTEX), Do Van Hong (born 1967, Chairman of the Board of Directors and General Director of Kinh Bac Petroleum Construction and Investment JSC – PVC.KBC), Dao Ngo Hoang (born 1978, former head of the trade-contract division of PVTEX) and Vu Phuong Nam (born 1979, former chief accountant of PVTEX).

All of them are accused of “deliberately violating State regulations on economic management causing serious consequences”. Tran Trung Chi Hieu also faces bribery charges.

According to the indictment of the Supreme People’s Procuracy, while implementing a housing project for PVTEX employees, Tran Trung Chi Hieu and Vu Dinh Duy (former General Director of PVTEX) signed contracts with an incapable and inexperienced contractor, changed the design and organised the construction contrary to what was approved by the People’s Committee of Hai Phong city.

The four defendants and Duy are accused of using the advance for the construction project illegally, leading to a loss of more than 19 billion VND (809,000 USD) for the State.

The procuracy said their acts also resulted in “very big” consequences, causing the project to be suspended in 2012, which led to its current dilapidation. The Hai Phong municipal People’s Committee decided to revoke the land for the project, as it had been illegally used to build attached houses instead of the approved purpose of apartment building.

When PVTEX contributed capital to establish PVTEX Kinh Bac JSC, Vu Dinh Duy and Tran Trung Chi Hieu also abused their positions and power and forced Do Van Hong to give each of them 3 billion VND (over 127,700 USD), according to the indictment.

The procuracy said among the four defendants, Tran Trung Chi Hieu, who bore the main responsibility for PVTEX’s activities, deliberately violated the State’s regulations on investment and construction. He also directed his subordinates to illegally advance 20 billion VND (852,100 USD) to PVC.KBC, leading to the loss of more than 19 billion VND.

After their wrongdoings were uncovered, Vu Dinh Duy fled and is being hunted by police.-VNA