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Reference ID	Created	Released	Classification	Origin
01HANOI3080	2001-11-23 09:26	2011-08-30 01:44	UNCLASSIFIED	Embassy Hanoi

This record is a partial extract of the original cable. The full text of the original cable is not available.


2001HANOI03080 - UNCLASSIFIED
 
 
 
                           UNCLASSIFIED     PTO3505

PAGE 01        HANOI  03080  230932Z 
ACTION EAP-00   

INFO  LOG-00   NP-00    AID-00   ACQ-00   CEA-01   CIAE-00  COME-00  
      CTME-00  DINT-00  ITCE-00  DOTE-00  SRPP-00  DS-00    EB-00    
      EXME-00  E-00     FAAE-00  FBIE-00  UTED-00  VC-00    FRB-00   
      H-01     TEDE-00  INR-00   ITC-01   JUSE-00  LAB-01   L-00     
      VCE-00   AC-01    NSAE-00  OMB-01   OPIC-01  PA-00    PC-01    
      PM-00    PRS-00   ACE-00   P-00     SP-00    SSO-00   STR-00   
      TEST-00  TRSE-00  USIE-00  PMB-00   DSCC-00  DRL-02   G-00     
      NFAT-00  SAS-00     /010W
                  ------------------4229AB  230933Z /38    
FM AMEMBASSY HANOI
TO SECSTATE WASHDC 4798
INFO AMCONSUL HO CHI MINH CITY 
NSC WASHDC
USCINCPAC HONOLULU HI
SECDEF WASHDC

UNCLAS HANOI 003080 
 
SIPDIS 
 
DEPARTMENT FOR EAP/BCLTV 
 
SECDEF FOR ABLAGG 
 
E.O. 12958:  N/A 
TAGS: PGOV PINS ECON VM DPOL ETMIN
SUBJECT:  PROVINCIAL CORRUPTION TRIAL HIGHLIGHTS GVN ANTI-GRAFT EFFORTS 
                       UNCLASSIFIED 
 
PAGE 02        HANOI  03080  230932Z 
 
¶1. SUMMARY:  A PROVINCIAL COURT HANDED DOWN STIFF SENTENCES 
ON NOVEMBER 20 TO A DOZEN STATE EMPLOYEES AND COMPANY 
EXECUTIVES CONVICTED OF BRIBERY AND EMBEZZELMENT OF ANTI- 
POVERTY FUNDS FOR AN INFRASTRUCTURE PROJECT IN LAI CHAU 
PROVINCE.  MEANWHILE, TOP LEADERS REAFFIRMED EFFORTS TO 
COMBAT CORRUPTION AMID WIDESPREAD PUBLIC DOUBTS ABOUT THE 
GVN'S COMMITMENT TO FIGHT CORRUPTION.  END SUMMARY. 
 
¶2. THE PROVINCIAL PEOPLE'S COURT OF LAI CHAU SENTENCED 12 
STATE OFFICIALS AND COMPANY EXECUTIVES TO JAIL TERMS RANGING 
FROM THREE YEARS TO LIFE.  THE DEFENDANTS WERE FOUND GUILTY 
OF EMBEZZELLING USD 586,000 FROM ANTI-POVERTY FUNDS INTENDED 
FOR A USD 4 MILLION ROAD BUILDING PROJECT IN AN MUONG TE 
DISTRICT, ONE OF THE POOREST DISTRICTS IN LAI CHAU, ITSELF 
AMONG THE MOST IMPOVERISHED PROVINCES IN THE COUNTRY. 
 
¶3. TRAN HUNG SON, DIRECTOR OF THE STATE-OWNED ETHNIC AND 
MOUTAINOUS DEVELOPMENT CONSTRUCTION COMPANNY, WAS SENTENCED 
TO LIFE IMPRISONMENT FOR EMBEZZELLEMENT AND ORDERED TO PAY 
USD320,000 IN COMPENSATION. LY VAN PHONG, VICE CHAIRMAN OF 
THE MUONG TE DISTRICT PEOPLE'S COMMITTEE, RECEIVED A THREE 
YEAR SUSPENDED SENTENCE FOR ACCEPTING A BRIBE OF USD2,200. 
TEN OTHER DEFENDANTS, INCLUDING CONSTRUCTION COMPANY 
EMPLOYEES, LOCAL OFFICIALS AND PRIVATE BUSINESSMEN, WERE 
SENTENCED TO BETWEEN THREE YEARS AND TWENTY YEARS IN PRISON. 
ONE OF THE ORIGINAL DEFENDANTS, NGUYEN THI THANH TUNG, 
FORMER HEAD OF THE LAI CHAU PROVINCIAL DEVELOPMENT AND 
INVESTMENT DEPARTMENT, COMMITTED SUICIDE AFTER COMING UNDER 
INVESTIGATION FOR DERELICTION OF DUTY. 
 
                       UNCLASSIFIED 
 
PAGE 03        HANOI  03080  230932Z 
¶4. THE COURT TRIAL BEGAN IN LATE MAY, BUT WAS SUSPENDED 
AFTER SEVERAL DAYS. ACCORDING TO LOCAL NEWSPAPER ACCOUNTS, 
THE CONDUCT OF THE TRIAL SEEMED UNUSUALLY CONTRIVED WITH THE 
ACCUSED CLAIMING THAT THEY HAD BEEN SCAPEGOATED.  THERE WERE 
ALSO REPORTS THAT THE PRESIDING JUDGE ATTEMPTED TO PREVENT 
THE DEFENSE LAWYERS FROM RAISING PROBING QUESTIONS ABOUT 
CONNECTIONS BETWEEN THE BRIBERS AND THOSE BRIBED. 
 
¶5. THE AUTHORITIES, ESPECIALLY COMMUNIST PARTY OF VIETNAM 
(CPV) GENERAL SECRETARY (GS) NONG DUC MANH, FREQUENTLY 
IDENTIFY CORRUPTION, ALONG WITH RED TAPE AND WASTERFUL 
SPENDING, AS WIDESPREAD PROBLEMS HINDERING NATIONAL 
DEVELOPMENT. EARLIER THIS WEEK, GS MANH ANNOUNCED A NEW ANTI- 
CORRUPTION ORDINANCE REQUIRING PARTY MEMBERS, STATE 
OFFICIALS, AND STATE EMPLOYEES TO DECLARE REAL ESTATE AND 
BUSINESS ASSETS.  THE ORDINANCE IS ALSO INTENDED TO CLARIFY 
OTHER FINANCIAL DISCLOSURE REQUIREMENTS FOR STATE OFFICIALS, 
STATE EMPLOYEES, AND PARTY MEMBERS. MANH, SPEAKING TO THE 
PRESS, ADDED THAT THESE DECISIONS, AS WELL AS REGULATIONS ON 
FINANCIAL AND BUSINESS ACTIVITIES FORBIDDEN TO PARTY MEMBERS 
WILL BE FINALIZED BY THE END OF THE YEAR AND COME INTO FORCE 
EARLY NEXT YEAR. 
 
¶6. IF THE MUONG TE TRIAL IS AN INDICATION, CORRUPTION IS 
PERCEIVED TO RUN WIDE AND DEEP.  SPEAKING AT THE JUST- 
CONCLUDED TRIAL, THE PRESIDING JUDGE COMMENTED, "MANY (MORE) 
INDIVIDUALS, BOTH FROM INSIDE AND OUTSIDE LAI CHAU PROVINCE, 
ARE BELIEVED TO HAVE RECEIVED BIG AMOUNTS OF MONEY FROM SON 
AND THIET (TWO OF THE ACCUSED)."  MOST OF THE PRESS AND 
PUBLIC ATTENTION FOCUSED ON HOW THE COURT DEALT WITH THE 
CASES. AFTER DELIVERING ITS VERDICT, THE COURT ANNOUNCED 
                       UNCLASSIFIED 
 
PAGE 04        HANOI  03080  230932Z 
THAT THE INVESTIGATING OFFICE WOULD CONTINUE ITS 
INVESTIGATIONS. THE COURT ALSO CONFIRMED THAT INVESTIGATING 
OFFICES RECEIVED VND 240 MILLION (USD 1,600) IN RETURNED 
BRIBE MONEY FROM 24 INDIVIDUALS, MANY OF THEM BELIEVED TO BE 
SENIOR STATE EMPLOYEES. DURING THE INVESTIGATION POLICE 
REPORTEDLY FOUND A NOTEBOOK BELONGING TO ONE OF THE ACCUSED 
CONTRACTORS LISTING BRIBES TO 117 OFFICIALS. 
 
¶7. IN FEBRUARY THIS YEAR, THE VCP PUNISHED 13 MEMBERS OF THE 
GOVERNMENT'S ETHNIC AFFAIRS DEPARTMENT, INCLUDING MINISTER- 
CHAIRMAN HOANG DUC NGHI AND THREE VICE-CHAIRMEN, FOR 
"WRONGDOINGS". A FORMER VICE-CHAIRMAN OF THE COMMITTEE ALSO 
RECEIVED A REPRIMAND. DIFFERENT SOURCES HAVE REPORTED THAT 
THE NATIONAL ASSEMBLY WANTED TO REMOVE NGHI FROM HIS POST. 
(NOTE: NGHI IS FROM THE TAY ETHNIC GROUP. HE IS VIETNAM'S 
LONGEST SERVING MINISTER (SINCE 1985) IS AND A CLOSE WORKING 
PARTNER AND PERSONAL FRIEND OF PRIME MINISTER PHAN VAN KHAI. 
END NOTE.) 
 
¶8. COMMENT:  THE ATTENTION FOCUSSED ON THE MUONG THE TRIAL 
AND GS MANH'S RECENT REMARKS SHOW THAT THE AUTHORITIES ARE 
PAYING CONSIDERABLE ATTENTION TO PUBLIC DISCONTENT ABOUT 
CORRUPTION.  THEIR ABILITY TO EFFECTIVELY ADDRESS THE 
PROBLEM IS AN OPEN QUESTION. 
PORTER 
 
                       UNCLASSIFIED

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Viewing cable 01HANOI3080, PROVINCIAL CORRUPTION TRIAL HIGHLIGHTS GVN ANTI-GRAFT EFFORTS