The VKSND accused the accused Tran Trong Mung, the former General Director of TISCO, of the main role, as the leader and the organizer of the offense, so he offered a prison term of 10-11 years.
After 3 days of questioning, on April 14, the representative of VKSND Hanoi announced the impeachment of 19 defendants related to wrongdoing at the second phase of production expansion project of Thai Nguyen Iron and Steel Company (TISCO).
Break contract rules
Accordingly, the VKSND proposed the Panel to sanction the defendant Tran Trong Mung, former General Director of TISCO, from 10-11 years in prison; Mai Van Tinh, former Chairman of the Board of Vietnam Steel Corporation (VNS), from 6-7 years in prison; Tran Van Kham, former Chairman of the Board of Directors, General Director of TISCO from 9-10 years in prison; Dau Van Hung, former General Director of VNS from 3-4 years in prison and 11 other defendants were recommended from 2-7 years in prison with the same crime “Violation of regulations on management and use of state property causes losses. , waste”. In addition, 4 other defendants were recommended 1-3 years in prison for the same crime of “Lack of responsibility, causing serious consequences”.
Defendant Mai Van Tinh at the trial
According to VKSND, TISCO is the investor of the second-phase production expansion project of TISCO. The VNS Board of Directors is the level of investment decision, with the function of directing project implementation. The winning bidder is China Metallurgical Science, Technology and Trade Corporation (MCC).
During the implementation of EPC Contract No. 01, more than 11 months from the effective date of the contract, MCC has not selected and signed the contract with the subcontractor; the detailed design of the items has not been completed, the machinery and equipment are not ordered to manufacture, the contract items have not been executed, but all people have been sent home; repeatedly proposed to extend the contract performance period; Unwarranted contract price increases …
With the assigned functions, duties and powers, defendant Mung is the General Director of TISCO and defendant Tinh, the Chairman of the Board of Directors of VNS, did not consider, direct the suspension, termination of the contract, withdrawal of advance payment, and use the contract penalty clause, report to the competent person for consideration to cancel the bid and re-organize the bidding according to regulations. On the contrary, the defendants directed the violations of the investment laws and the EPC Contract No. 01 to continue the contract performance, together with their subordinates in directing relevant individuals to the organization making adjustment of cost estimate part C. Along with that, participating in subcontracting to perform Part C of EPC Contract No. 01 in the form of unit price contract, TISCO directly takes over, takes over and makes payment. for the subcontractor to implement Part C, bear all risks, break the principle of implementing the contract in the form of a package, creating conditions for MCC to have a reason to deny the responsibility of implementing EPC Contract No. 01.
Competent contractor approval
In addition, the defendants also agreed that the Vietnam Industrial Construction Corporation (VINAINCON) was not qualified as a subcontractor to implement Part C of the EPC Contract No. 01, resulting in the project being delayed. raising interest rates, increasing investment costs, causing a particularly serious loss of state assets of more than VND 830 billion. The defendant’s behavior also adversely affects the interests of workers, indirectly adversely affects the economic development process and is currently a burden on the economy, affecting social security.
In this case, defendant Mung has the main role, is the person who directs and organizes the implementation of the offense. Specifically, when MCC breached the contract, the defendant directed to negotiate with MCC to separate Part C from EPC Contract No. 01, TISCO organized the implementation and took the risk; sign documents to report VNS and the Ministry of Industry and Trade request to report to the Government for approval of price adjustment for part C of the contract; Introduce and approve VINAINCON is not qualified as a subcontractor to perform Part C according to unit price …
Defendant Tinh is a co-offender of active crime. When TISCO reported the breach of the contract by TISCO, the defendant directed to negotiate with MCC to resolve the arising of EPC Contract No. 01; directly sign documents to request the Ministry of Industry and Trade to report to the Government for cost adjustment part C of EPC Contract No. 01; signed a document requesting the Government to agree on the policy of approving that VINAINCON is not qualified as a subcontractor to perform Part C; sign the written approval and assign the capital representative of VNS at TISCO to approve the adjustment of the total project investment structure, including the provision for part C of EPC Contract No. 01 increased by 15.57 million USD has no legal basis, is not in accordance with the provisions of EPC Contract No. 01.
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