The Greedy Tycoon: How the Trans-Vietnam Oil Director Swindled Billions

Mai Thi Hong Hanh, Director and Chairman of the Members’ Council of Xuyen Viet Oil Company, was charged with “Violation of regulations on the management and use of state assets, leading to waste and loss” and “Giving bribes.”

According to the investigation conclusions, on August 22, 2016, Xuyen Viet Oil was granted a license by the Ministry of Industry and Trade to import and export gasoline and oil products for a period of five years. After becoming a trader, Hanh took advantage of the state’s assignment to collect and manage the Fuel Price Stabilization Fund at the company. She instructed her subordinates to fabricate 81 financial reports to deal with inspections and supervision by the Ministry of Finance and the Ministry of Industry and Trade. She also directed the transfer of money from the company’s account to her personal account for private use.

In May 2023, Xuyen Viet Oil reported a balance of VND 219 billion in the Fuel Price Stabilization Fund as of May 31, 2023. However, the actual balance in the three accounts of the fund was just over VND 2 million. On August 11, 2023, the Ministry of Industry and Trade decided to revoke Xuyen Viet Oil’s business license and requested that Hanh immediately transfer all the money from the Fuel Price Stabilization Fund into the state budget. However, Hanh had used the money to purchase real estate, lend to friends, spend on personal expenses, and give bribes, leaving her unable to repay, causing a loss of over VND 219 billion to the state.

The investigation also revealed that the environmental protection tax was not derived from the capital, assets, or profits of gasoline and oil trading enterprises. These traders only helped the state collect the tax from consumers and were responsible for managing and paying it to the state budget on their behalf. From October 2021 to July 2022, despite collecting VND 1,244 billion in environmental protection tax on behalf of the state, Hanh used this money for personal purposes, leading to the loss of the ability to refund it to the state.

The investigation agency determined that Mai Thi Hong Hanh violated regulations in the management and use of the Fuel Price Stabilization Fund and in the task of collecting and transferring the environmental protection tax to the state budget, causing a total loss of VND 1,463 billion.

Bribery of over $1 million

To maintain the operations of Xuyen Viet Oil, Hanh engaged in deceptive practices in reporting to state agencies and offered bribes to delay tax payments, increase credit limits, and request the reinstatement of her business license. In doing so, the director of Xuyen Viet Oil directly and indirectly bribed eight individuals, totaling $1,265,000 (equivalent to over VND 29 billion).

Among the eight defendants charged with receiving bribes, four were leaders at the Ministry of Industry and Trade. Specifically, in 2016, Mai Thi Hong Hanh met with Nguyen Loc An to request assistance in obtaining the initial business license and overlooking certain shortcomings. Once the license was granted, Hanh bribed An on four occasions, totaling VND 400 million, and gifted him a Patek Philippe watch, which An sold for $23,000.

In mid-June 2021, to request the reinstatement of the import and export business license for Xuyen Viet Oil, Mai Thi Hong Hanh contacted Do Thang Hai for assistance and favoritism. Hai then communicated and directed Hoang Anh Tuan to consider and facilitate the early issuance of the license for Xuyen Viet Oil.

Subsequently, Hoang Anh Tuan discussed with Tran Duy Dong the formation of an inspection team for Xuyen Viet Oil. During this inspection, Tuan ignored the shortcomings and violations at Xuyen Viet Oil and proposed to Hai that he sign and issue the license. After these instances of “facilitation,” Hanh bribed Hoang Anh Tuan with $145,000, Dong with $120,000, and former Deputy Minister Do Thang Hai with $50,000.

In this case, Le Duc Tho, former Chairman of VietinBank and former Secretary of Ben Tre Provincial Party Committee, was accused of receiving the most substantial benefits from Xuyen Viet Oil. Specifically, in requesting loan and credit limit approval and extensions for Xuyen Viet Oil from VietinBank between 2019 and 2020, when Tho was still the bank’s chairman, he received bribes from Hanh on two occasions, totaling $600,000.

In 2021, after being appointed as the Secretary of Ben Tre Provincial Party Committee, Tho took advantage of his position to direct the creation of favorable conditions for Xuyen Viet Oil. In return, Hanh gifted him a set of golf clubs worth VND 1.1 billion and a Patek Philippe Plus watch worth $421,000 (nearly VND 10 billion). On two other occasions, Hanh gave Tho $200,000 and a Mercedes-Benz S450 Luxury car worth VND 6.6 billion.

In addition to the aforementioned defendants, the Ministry of Public Security Investigation Agency also accused Dang Cong Khoi, former deputy head of the Price Management Department of the Ministry of Finance; Phan Kien Anh, former director of the Distribution Branch of Nghi Son Refinery; and Le Duy Minh, former head of Ho Chi Minh City Tax Department, of “turning a blind eye” and creating favorable conditions for Xuyen Viet Oil in purchasing goods and delaying tax enforcement. As a result, Khoi received bribes of $20,000, Kien Anh received $140,000, and Minh received $190,000 and VND 500 million.