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Before being charged, Dinh Ngoc He, born 1971, was Senior Lieutenant Colonel and Deputy Director General of the Thai Son Corporation. He is charged with two counts, one of which is abusing position and power while performing official duties under Clause 2, Article 356 of the 2015 Penal Code, and the other is using falsified documents under Point b, Clause 2, Article 341 of the 2015 Penal Code
Three other defendants are also charged with abusing position and power while performing official duties, who are Tran Xuan Son, born 1986, former director of Binh Duong branch of Thai Son Development and Investment Joint Stock Company – Defence Ministry (Thai Son JSC); Tran Van Lam, born 1977, former Director General of Thai Son JSC; and Bui Van Tiep, born 1957, former commander of Division 367, the Air Defence-Air Force Service.
The fifth defendant is Phung Danh Tham, who is accused of lack of responsibility causing serious consequences under Clause 1, Article 285 of the 1999 Penal Code. Born in 1965, Tham was Colonel and Chairman of the Board of Directors and Director General of the Thai Son Corporation before being charged.
The Central Military Inspectorate accused Dinh Ngoc He as the person who initiated and instructed Lam, Tiep and Son in their illegal acts.
In July 2009, Ngoc He, then deputy head of Thai Son Corporation’s business section, discussed with the head of the planning and investment a proposal to set up a new legal entity, using capital contributed by Thai Son Corporation and some individuals and operating as a subsidiary of the corporation.
The new company – named the Thai Son Development and Investment JSC was licensed by the Ho Chi Minh City’s Department of Planning and Investment. The Thai Son Corporation held a 51 percent stake in the Thai Son JSC.
In September 2011, the Thai Son Development and Investment JSC changed its name to Thai Son Development and Investment JSC – Defence Ministry, with Ngoc He serving as Chairman of the Board of Director. Ngoc He was Director General of the company from March 2013 until he was arrested.
After the Thai Son Corporation withdrew its 31 percent of stake, the Thai Son JSC still did business in the name of a military company.
The indictment said during 2011-2016, Ngoc He used his position as the representative of Thai Son Corporation’s stake in the Thai Son JSC as well as chairman and director general of the Thai Son JSC to make inaccurate reports on the Thai Son JSC’s operation, falsely claiming its functions and tasks in order to get contracts in key national projects.
Ngoc He also instructed his subordinates to get military and official number plates for the company’s cars, then used the cars as collateral or for lease in violation of regulations. They pocketed more than 6 billion VND from those acts. The military inspectorate stated that the illegal use of the cars with military and official number plates violated rules on public cars, triggering denouncement of the public and affecting the prestige of the military.
Regarding other accomplices, the military inspectorate said Tran Van Lam was made director general of the Thai Son JSC after its name was changed to Thai Son Development and Investment JSC – Defence Ministry. After the market management agency of Binh Duong province detected more than 20,000 litres of sub-standard petrol at the Thai Son JSC, Lam, at the instruction of Ngoc He, signed a document sent to Binh Duong People’s Committee on July 17, 2014, claiming that Thai Son JSC was a military company doing business alongside defence duty in order to ask for exemption of fine.
Later, Lam together with Tiep and Son fabricated contracts on petrol deposit and storage and other documents to claim that the sub-standard petrol belonged to Division 367, not for the purpose of sale. Their act was said to cause loss of more than 1.4 billion VND in fine to the State budget.
Meanwhile, as Director General of the Thai Son Corporation, Danh Tham showed lax management and lack of supervision and inspection, as he failed to detect the illegal use of cars with military and official number plates by Ngoc He. Tham also did not notice other illegal acts of He and his accomplices.
The indictment affirmed that although Ngoc He did not admit to the charges, the military inspectorate found the documents and evidence collected during the investigation process constitute sufficient ground for the charges.
Ngoc He was also found to buy false university score record and degree and use them in his Party membership dossier and for salary raise and promotion.
Also according to the indictment, the defendants voluntarily asked to repair the consequences of their acts, and handed over a total of 1.28 billion VND to the Defence Ministry’s criminal investigation agency. Of the money, Ngoc He paid back 500 million VND, Xuan Son 500 million VND, Tiep 250 million VND, Danh Tham 20 million VND and Lam 10 million VND.
The trial will last through July 31.
