In relation to the case of “Abuse of Position and Power in the Performance of Official Duties; Negligence Causing Serious Consequences” that took place at the Ministry of Industry and Trade, the investigating authorities have proposed to prosecute former Deputy Minister of Industry and Trade Hoang Quoc Vuong and former Director of the Department of Electricity and Renewable Energy, Phuong Hoang Kim, for abuse of position and power in the performance of their official duties.

According to the investigation’s conclusions, in April 2017, the Government issued a decision on the mechanism to encourage the development of solar power projects in Vietnam, stipulating the price of electricity purchased from solar power projects connected to the grid at 9.35 US cents/kWh.

From the end of 2017, Trung Nam Solar Power Joint Stock Company, with Mr. Nguyen Tam Thinh as its legal representative, proposed and was approved by the People’s Committee of Ninh Thuan province. They sent a written request to the Ministry of Industry and Trade for appraisal and inclusion of the Trung Nam – Thuan Nam Solar Power Plant project in the power development planning of Ninh Thuan province.

When the Ministry of Industry and Trade was in the process of conducting some appraisal procedures and collecting opinions from relevant agencies and units, in May 2018, the Government Office issued a notice of the conclusion of the Deputy Prime Minister, which stated: “… For solar power projects that the Ministry of Industry and Trade is appraising, including projects with a capacity of 50 MW or less, the Ministry of Industry and Trade shall review and consider them synchronously in the National Solar Power Development Planning.”

Defendant Phuong Hoang Kim, Photo: Ministry of Public Security

Therefore, the Ministry of Industry and Trade stopped the appraisal and planning adjustment for solar power projects, including the Trung Nam – Thuan Nam Solar Power Plant project.

On August 31, 2018, the Government issued Resolution 115/NQ-CP on the implementation of a number of mechanisms and policies to specifically support Ninh Thuan province in socio-economic development.

This resolution agreed to allow Ninh Thuan province to enjoy the electricity price according to Decision No. 11/2017/QD-TTg dated April 11, 2017, of the Prime Minister until the end of 2020, for solar power projects and connection infrastructure with a design capacity of 2,000 MW that have been approved for implementation by the Prime Minister.

Subsequently, the Ministry of Industry and Trade established a drafting team for the Prime Minister’s decisions on the mechanism to encourage the development of solar power projects in Vietnam (Draft Decision No. 13/2020/QD-TTg) consisting of 26 members, with the former Director of the Department of Electricity and Renewable Energy, Phuong Hoang Kim, as the team leader.

Creating undue advantages for businesses

The investigation results show that, from the beginning of March 2019, Mr. Phuong Hoang Kim assigned his deputy to direct the Room for New and Renewable Energy to perform the task of building Draft Decision No. 13/2020/QD-TTg.

In the process of performing the assigned task, Mr. Kim was aware of the Government’s guidelines and the Prime Minister’s directions at meetings on mechanisms and policies to support Ninh Thuan province regarding solar power projects, which were “solar power projects connected to the grid and connection infrastructure with a capacity of 2,000 MW that have been approved for implementation by the Prime Minister” (projects approved for addition to the planning before August 31, 2018, are eligible for preferential prices).

However, out of self-interest and creating undue advantages for the Trung Nam – Thuan Nam Solar Power Plant to enjoy the preferential price of 9.35 US cents/kWh, Mr. Phuong Hoang Kim intentionally abused his position and power, failing to direct the Drafting Team of Decision No. 13 in accordance with Government Resolution 115 and the Prime Minister’s directions.

Mr. Kim also intentionally did not report to the leaders of the Ministry of Industry and Trade that Draft Decision 13 had content contrary to Resolution 115/NQ-CP, with the purpose of allowing the Trung Nam Power Plant to enjoy preferential electricity prices. Mr. Kim was also the one who directly advised and proposed the addition of planning and preferential electricity prices for the Trung Nam Solar Power Plant.

The investigating authorities concluded that the actions of the defendant, Phuong Hoang Kim, were the cause of the Ministry of Industry and Trade’s proposal to the Deputy Prime Minister to sign and issue Decision No. 13, which contradicted Resolution 115 and the Prime Minister’s directions. This resulted in the Vietnam Electricity Group having to pay for electricity at a preferential price of 9.35 US cents/kWh instead of 7.09 US cents/kWh for the two solar power projects, Solar Farm Nhon Hai and Trung Nam.

The defendant’s criminal acts caused damage to the Vietnam Electricity Group amounting to over VND 774 billion.

T.Nhung

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