Embezzlement, causing financial loss to businesses
The Ministry of Public Security’s Investigation Agency has just announced the investigation results of a case that occurred at the Vietnam Electricity Group (EVN), the Ministry of Industry and Trade, and several provinces and cities. The agency has also proposed prosecuting Mr. Hoang Quoc Vuong (former Chairman of EVN and former Deputy Minister of Industry and Trade), Mr. Phuong Hoang Kim (former Director of the Electricity and Renewable Energy Department), Mr. Nguyen Danh Son (former Director of the Power Purchasing Company), and nine other accomplices for two crimes: “Abuse of position and authority while performing official duties” and “Negligence causing serious consequences.”
The case originated in February 2023 when the Government Inspectorate sent a dispatch to the Ministry of Public Security’s Investigation Agency, requesting an investigation and handling of eight groups of criminal offenses discovered through the inspection of compliance with policies and laws in the management and implementation of planning and investment in power projects.
During the investigation, the security agency determined that Mr. Hoang Quoc Vuong, Deputy Minister of Industry and Trade, was assigned to manage the Electricity and Renewable Energy Department and directly instructed the drafting of Decision No. 13/2020/QD-TTg.
In the process, he was well aware of the Prime Minister’s directions to support Ninh Thuan province with “a 2,000 MW capacity for solar power projects and grid infrastructure to be approved for implementation.” However, Mr. Vuong directed the Electricity and Renewable Energy Department to draft Decision No. 13/2020/QD-TTg in a way that expanded the scope of beneficiaries of preferential electricity prices to “projects approved for addition will enjoy preferential prices.”
According to the investigation agency, Mr. Vuong’s instruction contradicted Resolution No. 115/NQ-CP and the Prime Minister’s directions.
Notably, apart from the issue in drafting Decision No. 13/2020/QD-TTg, former Deputy Minister Hoang Quoc Vuong was also accused of having “motives for embezzlement” and creating a mechanism for the Trung Nam – Thuan Nam Solar Power Plant project.
Specifically, Mr. Vuong abused his position and authority to agree on the proposal to approve the addition of the project to the master plan and intentionally requested a price of 9.35 US cents/kWh for the project, exceeding the scope permitted by the Prime Minister. Mr. Vuong’s intentional actions created favorable conditions for the Trung Nam – Thuan Nam Solar Power Plant to be included in the list of projects eligible for preferential electricity prices.
Even though the Prime Minister later directed the Ministry of Industry and Trade to strictly adhere to the resolution, Mr. Vuong ignored the directive, resulting in a loss of VND 774 billion for EVN.
During the investigation, the former Deputy Minister of Industry and Trade admitted to receiving VND 1.5 billion from the Trungnam Construction Investment Joint Stock Company.
Accused, Hoang Quoc Vuong. |
Former Director of the Power Purchasing Company causes a loss of VND 209 billion
Similarly to Mr. Vuong, the accused, Mr. Phuong Hoang Kim (former Director of the Electricity and Renewable Energy Department, Ministry of Industry and Trade) was assigned as the leader of the drafting team and directly involved in drafting Decision No. 13/2020/QD-TTg.
Mr. Kim was also motivated by embezzlement, creating “unjustified” favorable conditions for the Trung Nam – Thuan Nam Solar Power Plant.
The investigating agency assessed that Mr. Kim’s violation was the main reason for the Ministry of Industry and Trade’s proposal to the Deputy Prime Minister to sign and issue Decision No. 13/QD-TTg, which contradicted Resolution No. 115/NQ-CP, causing losses to EVN.
Another violation concluded by the Investigation Agency of the Ministry of Public Security, causing a budget loss, was related to the accused, Mr. Nguyen Danh Son (former Director of the Power Purchasing Company, Ministry of Industry and Trade). Accordingly, during the process of organizing the implementation of the power purchase agreement with Loc Ninh 3 Energy Joint Stock Company, Mr. Son was aware that the enterprise’s construction did not comply with the solar power plant regulations in the power purchase agreement and did not meet the conditions for COD (Commercial Operation Date).
To create benefits for Loc Ninh 3 Energy Joint Stock Company, Mr. Son signed a document from the Power Purchasing Company recognizing the COD for the plant so that the enterprise could meet the conditions for supplying electricity and receiving payment for the sold electricity.
“Mr. Son’s actions contradicted the power purchase agreement, causing additional losses of VND 209 billion to EVN,” the conclusion stated.
Other accused individuals from the Power Purchasing Company and the Electricity and Renewable Energy Department were also concluded to have drafted and submitted documents to benefit solar power plants, allowing them to supply electricity and receive payments. Some individuals in this group were found to have received “gifts” amounting to several tens of millions of VND.
Hoang Cu – Minh Duc
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