Eight arrested over Vietnam Airlines fuel scam
HANOI - Eight people have been arrested following a corruption probe into a 15-million dollar loss incurred by Vietnam Airlines' gasoline trading subsidiary, Vinapco. Four officials from Vinapco, which has a monopoly on the import of aviation fuel into Vietnam, were detained on Saturday in Hanoi and Ho Chi Minh City, the southern business capital's justice department newspaper said.
Four other businessmen were arrested on Friday and Saturday following an investigation by state inspectors that revealed Vinapco had illegally exported fuel via intermediaries to private traders in Cambodia. The newspaper alleged that the eight men had banked 124.8 billion dong (635,000 dollars) from these activities.
According to a preliminary report released last month by the State Inspectorate, Vinapco generated profits of 404 billion dong (25.6 million dollars) between 1996 and 2003 in importing aviation fuel and then reselling it to Vietnam Airlines. However, in its non-aviation business, Vinapco lost 243 billion dong (15.4 million dollars) in fuel trading between 1999 and 2003. The report also accused Vinapco general director Tran Minh of improperly handing out 20 construction contracts. He has yet to be arrested.
Over the past few years, the reputations of the government, the ruling Communist Party and the state sector have been badly tarnished by damaging revelations of embezzlement. Hanoi has vowed to punish corrupt officials within its ranks, but critics say the crackdown is selective and some high-ranking cadres have acquired de facto immunity from prosecution.
Agence France Presse - October 31, 2004
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