No penalty for Hanoi ship scandal officials: Govt

Members of the Vietnamese government will not be punished for problems at a state-owned shipbuilder whose debts threatened the country’s global financial reputation, a top official said Monday.

Deputy Prime Minister Nguyen Sinh Hung made the comments to the National Assembly, where some lawmakers last year said the government should be held accountable for the scandal at Vinashin (Vietnam Shipbuilding Industry Group).

One member of the communist-led body even demanded a vote of no confidence in Prime Minister Nguyen Tan Dung, who appointed the firm’s former chairman Pham Thanh Binh.

“The government, the prime minister and some cabinet members had some shortcomings and mistakes,” Hung said at the opening of a new assembly session.

But he said the ruling Politburo “decided not to have disciplinary measures towards these people”, asking them instead to learn from the experience.

A police investigation is, however, being conducted into former executives of the firm.

The ex-chairman, Binh, was arrested last year and accused of violating state economic management regulations, while others have also reportedly been held in the case.

The lack of sanctions against government members failed to shock a foreign economic analyst, who said the country’s group decision-making by the Politburo rarely allows for individual responsibility.

“It’s not just, not equitable, but it’s absolutely not a surprise,” he told AFP, declining to be named.

Vinashin’s debts of more than US$4 billion pushed it to the brink of bankruptcy and in December the company reportedly defaulted on the first $60 million instalment of a $600 million loan arranged by Credit Suisse in 2007.

Vinashin, whose interests spanned a range of sectors from ports to real estate, is being restructured in a process that is “on the right track” although challenges remain, Hung told legislators.

“The Group will overcome difficulties, continue restructuring, pay the debt and develop,” he said.

Discussions between Vinashin and its creditors continue, the foreign analyst said.

Investors and analysts fear the scandal is symptomatic of wider problems at state-owned firms, a key part of the economy. Ratings agencies cited Vinashin’s troubles in downgrading Vietnam’s sovereign ratings last year.

Dung in November admitted government failings in the Vinashin case and personally accepted responsibility – AFP

Tags: Vietnam Shipbuilding industry, Vinashin