Government Inspectorate Hands Over Quang Son Cement Plant’s Multi-Trillion Dong Loss Case to Ministry of Public Security

On December 11-12, the Government Inspectorate (GI) issued a comprehensive inspection report on the proposal and implementation of the Quang Son Cement Plant project, along with its production and business operations. The project is owned by Vietnam Construction Industrial Corporation (Vinaincon).

The Quang Son Cement Plant is located in Dong Hy and Vo Nhai (former) districts, Thai Nguyen province. The project’s operation has facilitated local and regional industrial development, increased local revenue, created jobs for ethnic minorities in the area, and contributed to the economic restructuring and improved livelihoods of the local population, particularly for ethnic minority groups.

According to the inspection results, as of December 31, 2021, the project’s business activities had incurred a loss of over VND 1.9 trillion. Vinaincon’s approval of investment adjustments exceeded the authorized limit, violating the Law on Bidding, the Law on Construction, and the Prime Minister’s directives, potentially causing a loss of over VND 1 trillion. Additionally, the company illegally profited VND 46 billion from mineral exploration and exploitation.

Based on the evidence and verification results, the GI identified violations in the project’s implementation, including breaches of bidding regulations under Article 222, investment regulations for construction projects under Article 224, and negligence causing serious consequences under Article 360 of the 2015 Penal Code (amended in 2017) in packages 01, 02, and 03.

Package 01’s bidding plan was approved without proper authority. The winning bid exceeded the plan by nearly USD 18 million (VND 322 billion), yet it was still awarded.

The inspection concluded that the signed contract included lower quantities than specified in the tender documents, but the contract price remained unchanged, potentially causing a loss of approximately EUR 4 million (VND 79 billion as of September 9, 2005). Additionally, the total cost of supervision experts exceeded EUR 1.3 million (VND 34.5 billion as of December 31, 2014).

For packages 02 and 03, Vinaincon and Quang Son Cement Company did not directly procure equipment and vehicles for mining but instead hired Quang Son Limestone Mining Company, deviating from the Prime Minister-approved plan.

In 2008, Vinaincon failed to conduct a bidding process for limestone and clay mining, loading, and transportation for the Quang Son Cement Plant. By 2023, a bidding process was organized, resulting in a VND 47.5 billion reduction in the winning bid, potentially causing a loss of this amount. Furthermore, the company illegally mined over 806,000 tons of stone, selling it as construction stone and profiting nearly VND 47 billion.

Based on the inspection findings, the GI referred the case to the Ministry of Public Security for further investigation into certain consulting and construction packages (32A, 13, 14, and 19).

The GI recommended that the Prime Minister direct the Ministry of Public Security to receive the case files from the inspection agency for legal processing. The inspection agency emphasized that any detected legal violations during the process should be referred to investigative authorities for handling according to the law.