VZCZCXRO4888
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHHI #0865/01 2060946
ZNR UUUUU ZZH
R 240946Z JUL 08
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 8188
INFO RUEHHM/AMCONSUL HO CHI MINH 4947
RUCNASE/ASEAN MEMBER COLLECTIVE

UNCLAS SECTION 01 OF 02 HANOI 000865 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON PHUM PGOV KCOR KPAO SOCI PREL VM
SUBJECT: GVN CLAMPDOWN ON PRESS CLAIMS MORE VICTIMS 
 
Ref: A) HANOI 672; B) HANOI 569; C) HANOI 563; D) 07 HCMC 1136; E) 
07 HANOI 2088; F) 07 HANOI 1016  G) 2007 HCMC 0965 
 
HANOI 00000865  001.2 OF 002 
 
 
Summary 
------- 
 
¶1. (SBU) Two popular State-controlled but reformist newspapers based 
in Ho Chi Minh City that ran stories on corruption replaced 
editorial leaders and the Ministry of Public Security (MPS) recently 
interrogated the paper's chief editors.  While the dailies portrayed 
the moves as nothing out of the ordinary, our media contacts say 
they are punishment for reporting on stories such as the Ministry of 
Transportation's 2006 Project Management Unit-18 (PMU-18) scandal in 
which officials wasted millions of dollars of funds for 
infrastructure on gambling, real estate and bribery, and for running 
articles that indirectly called for freeing up the political system. 
 A recent CPV-organized meeting reportedly concluded that 
authorities should step up efforts to "ensure political stability 
and social order," given public uproar over the PMU-18 case and the 
arrests of two reporters who exposed the scandal (Reftels).  The MPS 
says the arrested reporters admitted to "exaggerating and 
fabricating information" in the PMU-18 case.  Coming down hard with 
the ideological sledgehammer on those who report corruption while 
effectively exonerating those who perpetrate it likely will have 
counterproductive results over time, deepening public skepticism of 
the GVN's and CPV's stated willingness to tackle corruption.  End 
Summary. 
 
Editors Out, Chief Editors Interrogated 
--------------------------------------- 
 
¶2. (SBU) In early July, State-controlled newspapers Youth ("Thanh 
Nien") and Young Age ("Tuoi Tre") replaced the managing editor and 
deputy chief editor, respectively.  (Note: In Vietnam, "chief 
editors" have ultimate power over what stories run as well as 
day-to-day administrative responsibilities while "managing editors" 
oversee story publication with direction from the "chief editors." 
"Deputy chief editors" in theory have more authority than "managing 
editors," but in practice dividing lines between the two often are 
not clear. End Note).  These developments follow the May arrests of 
Thanh Nien reporter Nguyen Van Chien and Tuoi Tre reporter Nguyen 
Van Hai for "abusing power in carrying out their official duties" in 
connection to their 2006 reports on the corruption scandal at the 
Ministry of Transportation's Project Management Unit-18 (PMU-18) 
(Reftels).  The two papers portrayed the personnel changes as 
nothing out of the ordinary, but our media contacts say they are 
punishment for reporting on corruption and for running articles that 
indirectly called for political change in the lead-up to the 10th 
Party Congress in 2006. 
 
¶3. (SBU) The former Managing Editor at Thanh Nien remains at the 
paper, but in his new position has no say over which stories run. 
Thanh Nien contacts privately told us that the former managing 
editor, who was involved in running the original PMU-18 stories, now 
has a highly paid "do-nothing" position. 
 
¶4. (SBU) Media contacts say police officials from the Ministry of 
Public Security's (MPS) A 24 Investigative Department interrogated 
the current Thanh Nien and Tuoi Tre chief editors -- both of whom 
are senior Party members -- over the course of the last few days 
about coverage of the PMU-18 scandal and the arrest of the 
reporters.  PM Dung reportedly asked Truong Tan Sang, Politburo 
member and Standing Member of the Secretariat of the Communist Party 
of Vietnam (CPV) Central Committee, to allow him "to get tough" with 
the chief editors. 
 
¶5. (SBU) HCMC press contacts remind us, however, that Thanh Nien's 
chief editor has thus far avoided any personal repercussions for 
PMU-18 reporting because of his connections to Politburo members. 
This "umbrella" saved him from what sources characterize as a 
still-unfolding "crackdown" on the press.  For his part, the Thanh 
Nien former managing editor is a "scapegoat," they add.  These 
contacts are not as confident that the Tuoi Tre managing editor will 
avoid disciplinary action because he does not enjoy the same "Party 
umbrella."  Should the Thanh Nien editor be demoted, our contacts 
say the paper will seek to make it appear to be a routine personnel 
reshuffle. 
 
¶6. (SBU) Tuoi Tre also recently formally demoted a deputy chief 
editor who was de facto removed from his job last fall, once again 
in connection with reporting on corruption perpetrated by some of 
the GVN's (and CPV's) highest-ranking members.  In that episode, 
reported Ref G, two senior editors at Tuoi Tre were removed from 
their positions (although not formally fired) for reporting on 
corruption in the awarding of contracts for printing polymer bank 
notes as well as on related issues of nepotism between the governor 
of the State Bank of Vietnam (SBV) and the printing firm owned by 
his son.  In conversations with HCMC CG, the two editors explained 
that they were pushing the envelope on press freedom by running 
stories that had not been formally banned even after receiving 
instructions to let the whole matter drop quietly.  Rising stars 
 
HANOI 00000865  002.2 OF 002 
 
 
within the Communist Youth League with stellar CPV connections and 
zero background in journalism replaced the two editors. Other 
contacts in Tuoi Tre report that both CPV insiders remain isolated 
at Tuoi Tre, with reporters making a point of leaving the company's 
cafeteria when the two enter. 
 
¶7. (SBU) Tuoi Tre's chief editor used the case of the two sidelined 
editors as a jumping off point for a spirited presentation he gave 
to the National Assembly late last fall calling for 
professionalizing Vietnam's media.  In a recent interview for a 
local publication, one of the two Tuoi Tre editors who were 
sidelined made his displeasure over his recent formal demotion 
known.  In oblique criticisms of the censors and the GVN's overall 
policy of maintaining strict control over all newspapers, he said he 
will leave the paper in 2010 to become a professional reporter who 
is "not dependent on anyone."  He added that "the challenges" 
reporters face mean the Vietnamese public over the coming months 
will find out who the "real reporters" are as well as which 
newspapers are worth reading. 
 
The Still Unfolding PMU-18 Drama 
-------------------------------- 
 
¶8. (SBU) In other PMU-18 related developments, the Party's 
Information and Education Committee, People's Supreme Procuracy (the 
Central Government's prosecution authority), and Vietnam 
Journalist's Association convened a meeting on July 3 to discuss the 
cases of the two arrested reporters and their alleged MPS sources. 
Meeting participants also discussed international reaction to the 
arrests and, according to local press accounts, concluded that local 
reporting on the PMU-18 scandal had a "negative impact on public 
opinion."  According to official (GVN-controlled) press accounts, 
participants reportedly urged Party authorities to work to "ensure 
political stability and social order." 
 
¶9. (SBU) Media contacts say the MPS also interrogated nearly 40 
other reporters and government personnel about what they know on the 
case. (Note: after Tuoi Tre and Thanh Nien ran the original stories 
on PMU-18, a number of other media outlets ran their own exposes on 
the scandal.  End Note).  The MPS concluded that reporters 
"exaggerated or fabricated" information in stories on the lifestyle 
and alleged plots of former Deputy Minister of Transportation and 
PMU-18 supervisor Nguyen Viet Tien, these contacts add.  Our Party 
contacts add that Tien will soon be appointed vice head of the 
Government Commission on Enterprise Reform and Development.  Tien 
was released in October and his membership in the CPV restored after 
the People's Supreme Court dropped the investigation on his 
involvement in the scandal. 
 
Comment: Coming Down With the Ideological Sledgehammer 
--------------------------------------------- --------- 
 
¶10. (SBU) Given simmering resentment over the arrests of the 
reporters and frustration with GVN failings on corruption in 
general, coming down with the ideological sledgehammer -- by urging 
reporters to follow Party lines to ensure "social stability" -- will 
likely be counterproductive in the long run.  On the one hand, it is 
likely to deepen public skepticism of the GVN's and CPV's 
willingness to tackle corruption.  On the other hand, it is likely 
to embolden would-be corrupt officials who will interpret this 
episode and others as a signal that top-level CPV officials and 
their allies are exempt from the GVN's much-vaunted anti-corruption 
campaign. 
 
¶11. (SBU) Comment Continued: This case also seems to reflect 
continuing leadership maneuvering.  Many say General Secretary Nong 
Duc Manh, whose son-in-law was implicated in the scandal, ordered 
the arrests and is protecting Tien.  By "getting tough" with the 
editors, Prime Minister Dung may be demonstrating his loyalty to 
Manh and the collective leadership.  As he has the most to gain from 
Manh's discomfort, this may be a particularly shrewd move on Dung's 
part. 
 
¶12. (U) This cable was coordinated with ConGen Ho Chi Minh City. 
 
MICHALAK