Long Thanh Airport Contractors Under Investigation for Alleged Massive Fraud

The construction of Vietnam's Long Thanh International Airport project is facing significant scrutiny as multiple contractors and officials are being investigated for alleged massive fraud. An inspection report submitted on July 28 revealed numerous violations during the first phase of construction, which includes two runways, a passenger terminal, and supporting infrastructure with an annual capacity of 25 million passengers and 1.2 million tons of cargo, largely set for completion in 2025. Inspectors identified several irregularities, particularly in construction packages XD01 and XD02, related to piling work and the main construction of the air traffic control tower. These included the approval of supplier changes without specifying origins and without obtaining valuation results. Furthermore, some machinery and equipment inspections were incomplete, and several had expired registration or inspection certificates. Corporation 36 JSC is under fire for transferring part of the XD02 contract, valued at VND75 billion, to another contractor without official approval. This, along with similar actions by consortium member Newtatco, has been deemed illegal subcontracting by the Government Inspectorate, involving a combined VND99 billion. The Vietnam Air Traffic Management Corporation (VATM) is also implicated for improper advance payments, failing to collect VND18 billion from Corporation 36 and VND4 billion from Newtatco. VATM also paid up to 90% of contract value, VND3.8 billion, for construction drawing designs to Vietnam Construction Consultancy Corporation (VNCC), and accepted and paid for work that did not meet required conditions, with valuation dossiers lacking material origin and brand information, totaling VND37 billion. In Sub-project 3, Package 5.6, contractor consortiums signed agreements with other companies before obtaining approval for them as subcontractors, involving VND87 billion with firms like Hancorp, Vinaconex, and Fecon. Package 5.10 faced issues with numerous errors in bidding documents requiring multiple revisions. The Airports Corporation of Vietnam (ACV) failed to purchase construction insurance for the full contract value, and some contractors neglected mandatory insurance for workers. Major contractors, including Newtecons, Ricons, Hancorp, Vinaconex, ATAD Steel Structure JSC, and Phuc Hung, transferred VND1.596 trillion worth of contracted work under Package 5.10 without prior approval. The Vietur consortium, led by Turkey's IC Ictas Group, also illegally subcontracted a portion of Package 5.10, worth VND1.652 trillion. The Government Inspectorate blamed project managers and consulting firms for failing to comply with legal procedures and contractual obligations, citing deficiencies in cost estimation, appraisal, contractor selection, quality management, contract administration, and advance payment management. Those held responsible include the boards of VATM and ACV, project management boards, expert panels, and the construction contractors. In a separate criminal investigation, 31 individuals are being probed by the Police Department for Investigation of Corruption, Economic and Smuggling Crimes for violations of bidding regulations causing serious consequences, bribery, and embezzlement. Among them are ACV Chairman Nguyen The Phiet and board member Nguyen Tien Viet, investigated for "violating bidding regulations causing serious consequences" and "accepting bribes." Vinaconex announced the arrest of board member Nguyen Huu Toi and former chairman Duong Van Mau on charges of "violating bidding regulations causing especially serious consequences," with Toi accused of bribing project managers. ACV, with over VND35.8 trillion in charter capital and 95.41% government ownership, manages the airport's construction, a critical national infrastructure project costing VND337 trillion on 5,000 hectares. Source: VnExpress International