VZCZCXRO1014
OO RUEHHM
DE RUEHHI #0088/01 0251003
ZNR UUUUU ZZH
O 251003Z JAN 08
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7048
INFO RUEHHM/AMCONSUL HO CHI MINH 4181
RUEHPH/CDC ATLANTA GA
RUEAUSA/DEPT OF HHS WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RHMFISS/CJCS WASHINGTON DC
RHMFIUU/CDR USPACOM HONOLULU HI
RHHMHAA/COMPACFLT PEARL HARBOR HI

UNCLAS SECTION 01 OF 02 HANOI 000088 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE/OGAC, EAP/MLS 
HHS/OSSI/DSI PASS TO HHS/OGHA (WSTIEGER, LVALDEZ, CHICKEY, MWYNNE) 
AND NIH/FIC (RGLASS) 
USAID FOR ANE (CJENNINGS, MWARD) AND GH (KYAMASHITA, KHILL) 
BANGKOK FOR USAID/RDM/A (OCARDUNER, CBOWES) 
CDC FOR COGH (BLOUT), CCID (COHEN), and GAP (BIRX, SIMONDS) 
SECDEF FOR ISA\SHUBERT 
PACOM FOR J5\LACY 
 
E.O. 12958: N/A 
TAGS: ELAB PGOV PROP SOCI TBIO EAID SNAR KHIV VM
SUBJECT: SOY SAUCE WAR: HCMC PROVINCIAL AIDS COMMITTEE VICE CHAIRMAN 
DODGES PUBLIC ALLEGATIONS OF MISCONDUCT 
 
¶1. (SBU) Summary.  Newspaper reports highlighting corruption 
investigations of HCMC Provincial AIDS Committee (PAC) Vice Chairman 
Le Tran Giang have focused attention on his conduct but seem 
unlikely to lead to his dismissal.  Dr. Giang has the political 
backing of HCMC People's Committee Vice Chairman Nguyen Thanh Thai, 
who is also the HCMC PAC chairman.  Post believes these recent news 
reports have been instigated by health officials sacked in November 
2007, along with their political allies, who may be seeking to fill 
management positions within the soon to be established HCMC Center 
for AIDS Control.  The political attacks focus on Dr. Giang's role 
in a soy sauce scandal that broke in May 2007 involving a cover-up 
of locally produced soy sauce containing high levels of 3-MCPD 
carcinogen and, more recently, uncorroborated news reports that 
inspectors are continuing their investigation of Giang  in pursuit 
of corruption charges.  Regardless of what happens to Dr. Giang, USG 
is confident in its ability to continue its relationship with HCMC 
in the fight against HIV/AIDS.  End Summary. 
 
HCMC HEALTH OFFICIALS SACKED WHILE DEPUTY ESCAPES UNHARMED 
--------------------------------------------- ---------- 
 
¶2. (SBU) On October 22 2007, the HCMC People's Committee, acting on 
the recommendations of an inter-agency inspection team, dismissed 
HCMC Department of Health (DOH) Director Nguyen The Dung for 
knowingly permitting the continued manufacture at 20 facilities of 
soy sauce containing high levels of 3-MCPD carcinogen.  News of the 
affair, which broke in May 2007, created public uproar given that 
the DOH had known of the high levels of the carcinogen since 2005 
and failed to inform consumers.  (NOTE: Dung was dismissed from MOH 
on October 22, 2007 and administratively transferred to the 
Department of Propaganda and Education within the HCMC Communist 
Party.) 
 
¶3. (SBU) Subsequently, on November 10 2007, HCMC DOH Chief Inspector 
Nguyen Duc An was also sacked.  In the same ruling, Giang received 
an administrative warning, but no disciplinary action, despite 
evidence that he had received an oral briefing in 2005 from 
Inspector An on the inspections, had signed two documents allowing 
the continued manufacture of the contaminated soy sauce, and delayed 
public announcement of 3-MCPD levels until February 2006. 
Subsequently, the deposed Dung allegedly wrote to concerned agencies 
requesting a full investigation of Giang's "intentional acts" to 
suppress information documenting his prior knowledge of the saucy 
affair. 
 
POLITICS OF REORGANIZING AIDS ADMINISTRATION: WHO'S ON TOP 
--------------------------------------------- ---------- 
 
¶4. (SBU) Decision 1112-TT, signed by the Prime Minister in 1997, 
effectively created national and provincial AIDS committees (NAC and 
PAC) to coordinate HIV/AIDS activities.  Decision 61 of 2000 phased 
out the NAC/PAC system and created a Committee for Drugs, 
Prostitution and Social Evils.  Nonetheless, the HCMC PAC has 
remained intact, while, pursuant to Decision 25 of 2005, a 
Department of AIDS has been set up within the Preventative Medical 
Center of the HCMC DOH.  In HCMC, the PAC reports directly to the 
People's Committee and is led by two political heavyweights: HCMC 
People's Committee Vice Chairman Nguyen Thanh Tai as PAC Chairman 
and Le Tran Giang as Vice Chairman and Director of the PAC Standing 
Office. 
 
¶5. (SBU) According to PEPFAR staff, HCMC People's Committee Vice 
Chairman Tai, a rising star in the city government, is currently the 
fourth highest ranking official within the Communist Party in HCMC. 
Dr. Giang reputedly is a close ally of Vice Chairman Tai, while 
Director Dung and Inspector An are associated with a rival faction 
within the Communist Party.  As HCMC moves to implement Decision 25, 
it remains to be seen who and from what political faction will fill 
leadership roles within DOH's new Center for AIDS Control, which may 
usurp much of the implementing authority currently held by the PAC 
Standing Office that remains under the leadership of Dr. Giang. 
 
¶6. (SBU) More recent newspaper articles highlighting HCMC 
inspectors' continuing investigation of Dr. Giang are perceived by 
locals as another attack in the soy sauce war aimed at publicly 
 
HANOI 00000088  002 OF 002 
 
 
rebuking Dr. Giang and, by association, Vice Chairman Tai.  The 
articles, likely written by editors sympathetic to Mr. Dung, lay out 
three accusations: 1) HCMC PAC is an illegal entity operating 
outside the guidelines of Decision 61 and Decision 25 (2005); 2) 
HCMC PAC operates non-transparently and corruptly; and 3) HCMC PAC 
achieves poor results after spending millions of dollars on HIV/AIDS 
activities.  Despite these generalized accusations, the press has 
not provided any insight into the formal investigation of Dr. Giang 
that began on October 29 and was scheduled to conclude after 30 
days. 
 
USG CONTINUES SUPPORT FOR PEOPLE LIVING WITH HIV/AIDS 
--------------------------------------------- -------- 
 
¶6. (SBU) HCMC has the highest HIV prevalence rate, highest 
concentration of intravenous drug users and commercial sex workers, 
and highest number of people living with AIDS among all provinces 
and cities in Vietnam.  Therefore, a significant amount of the 
President's Emergency Plan for AIDS Relief (PEPFAR) activities focus 
on target groups in HCMC and is delivered through local service 
providers.  PEPFAR provides a substantial portion of the HCMC PAC's 
annual operating budget of USD 6.2 million.  Through a CDC 
cooperative agreement, HCMC PAC has received a combined USD 5.8 
million during FY2006 and FY2007, and an additional USD 6.6 million 
has been programmed for FY2008.  Further, USAID provides over USD 2 
million in grants to NGO implementing partners who collaborate 
closely with HCMC PAC, including Family Health International, 
Population Services International and Medecins du Monde.  Regular 
audits of the CDC cooperative agreement and all USAID grantees have 
uncovered no abnormal financial procedures or mismanagement. 
 
¶7. (SBU) COMMENT: Post believes these latest press reports rehash 
earlier charges against Dr. Giang and have not shaken the HCMC 
People's Committee's faith in his leadership ability.  In meetings 
with the CDC Country Director in early January, Giang himself raised 
the issue and stated, "I'm still in control and everything will be 
fine."  HCMC PAC has shown leadership and ability to combat HIV/AIDS 
and remains an important PEPFAR partner.  The USG continues its 
relationship with this institution as the recipient of funds through 
an existing cooperative agreement with CDC.  Regardless of what 
happens to Dr. Giang, we are confident that, with current safeguards 
in place, we can continue our collaborative relationship with HCMC 
in the fight against HIV/AIDS.  Post will continue to monitor media 
coverage of the soy sauce war and seek to ensure that allegations 
against Giang do not adversely affect the GVN's prevention, care and 
treatment programs in HCMC. 
 
MICHALAK