Former Vietnam-China Mineral Company CEO Faces Charges for Bribery

Mr. Bui Thanh Binh, former General Director of Vietnam-China Mineral and Metallurgy Company (VTM), has been recommended for prosecution by the Ministry of Public Security's investigative police agency on three charges: violating regulations on the management and use of state property causing loss and waste, bribery, and dereliction of duty. Mr. Binh is accused of receiving 78 billion VND (approximately $3.2 million USD) in 'commissions' from businesses, of which 62.2 billion VND ($2.7 million USD) is identified as bribery. According to the investigation, while managing VTM, Mr. Binh allegedly colluded with representatives of several companies to sell iron ore from the Quy Xa mine at prices 50,000 to 70,000 VND per ton lower than the market rate. In return, these companies allegedly paid him off-contract fees. This practice resulted in a state asset loss of over 434.7 billion VND (approximately $18.8 million USD). Mr. Binh directed the construction of pricing plans according to the predetermined low rates, which were then submitted to the Board of Directors for approval. Despite knowing that the selling prices were lower than the market, board members, the chief accountant, and many other board members signed off on the documents. Initially, pricing plans were sent to VNS for approval from the capital representative. However, from mid-2017 onwards, the capital representative at VTM was granted the authority to make decisions and assume responsibility independently, allowing the ore sales to continue without reporting. Over five consecutive years, from 2015 to 2020, Mr. Binh signed 30 contracts to sell iron ore to 18 businesses. Of these, 25 contracts with 16 enterprises were executed, selling nearly 5.8 million tons of ore worth nearly 2.951 trillion VND. The police determined that all this ore was sold at a price 50,000 to 70,000 VND per ton lower than the market price, as per prior agreements with the businesses. This action by Mr. Binh and his subordinates caused a loss of over 434.7 billion VND to state assets. Mr. Binh received 53.3 billion VND in 'thank you' money from 8 businesses. Of this amount, 43.8 billion VND was determined to be from a period sufficient for prosecution for bribery. He used approximately 3.8 billion VND to pay some employees, returned 1.5 billion VND to two businesses, and used the remaining over 48 billion VND for personal purposes. Receiving 'commissions' from companies supplying coke In addition to the iron ore sales irregularities, Mr. Binh and his associates are also accused of wrongdoing in the procurement of coke for production. In 2015, Mr. Binh accepted a proposal from the leadership of Viet Phat Company and Trung Thanh Thai Nguyen Company to regularly supply coke to VTM. In return, the two companies promised to pay Mr. Binh between 40,000 and 200,000 VND per ton of coke. Mr. Binh agreed and instructed the Materials Department to proceed. In the initial phase, although the supplier selection was conducted through competitive bidding, the responsible staff used fake price quotes to legitimize the dossiers, ensuring that Viet Phat and Trung Thanh Thai Nguyen were awarded contracts. When VTM had to organize tenders according to regulations to meet bank loan conditions, the methods changed. Many contracts were split into smaller lots of under 10,000 tons to avoid seeking approval from the board of directors. From 2015 to 2020, Viet Phat and Trung Thanh Thai Nguyen signed 38 contracts, supplying nearly 287,000 tons of coke to VTM with a total value of over 2.02 trillion VND. After each contract period, representatives of the two companies repeatedly gave money to Mr. Binh, totaling over 25 billion VND. Of this, 18.4 billion VND was determined to be from a period sufficient for prosecution for bribery. According to the conclusion, in addition to being accused of receiving 62.2 billion VND in bribes, Mr. Binh also violated regulations on the management and use of state property, causing losses and waste amounting to over 434.7 billion VND. He and his subordinates also showed dereliction of duty, causing losses to state assets of over 46.29 billion VND. Among the 30 other defendants in the case, Mr. Le Ngoc Hung, former Vice Chairman of the Lao Cai Provincial People's Committee, and Mr. Do Truong Giang, former Director of the Lao Cai Department of Industry and Trade, face charges of abusing their positions and powers while on duty. VTM was established with the permission of the Prime Minister and the former Ministry of Planning and Investment, under the Vietnam National Coal-Mineral Industries Group (Vinacomin), to implement projects including the Quy Xa iron ore mine and the Lao Cai steel plant. However, due to project delays and losses, VTM was listed among the 12 inefficient projects in the industry and trade sector. Mr. Binh's alleged actions highlight significant governance issues and concerns regarding the safeguarding of state assets within state-owned enterprises.