Vinashin Chairman Arrested

On 4th of August 2010, Pham Thanh Binh, former Group Chairman of the Vietnam Shipbuilding Industry (Vinashin) was arrested by Security Investigation Agency from Ministry of Public Security.

Binh was arrested for investigation of acts of “intentionally left the State’s regulations on economic management, causing serious consequences.”

The investigation agency has examined 4 locations: Vinashin Office at 172 Ngoc Khanh Hanoi, place of residence registration of Pham Thanh Binh at 10 Ngo Van So, an apartment in 17T6 Trung Hoa – Nhan Chinh and a villa in the area Cau Dien, Tu Liem district.

Binh was irresponsible in the mobilization, management and use of state granted money, loans or loan guarantees for the implementation of capacity building projects, upgrading and building shipyards, purchasing many old ships, vessels not suitable for sea transport causing serious consequences. The Group has no ability to pay due debts and over due debts.

Mr. Binh has seriously violated the provisions of the State on the formulation, approval and organizations bidding for projects invested by the Group and member units.

Vinashin chairman has established various member units, joint stock companies without sufficient financial capacity, sent his son, brother to represent the State’s capital and held positions in contrary to regulations of the Party and State.

One day after conclusion of the Party Central Inspection Commission, at the office of Shipbuilding Industry Corporation Vietnam, leaders of the Ministry of Transport , representatives of the Ministry of Home Affair announced the decision of the Prime Minister for stopping the position of Vinashin chairman Pham Thanh Binh for review and inspect his responsibilities, investigate and clarify the mistakes in the implementation of assigned tasks.

(Source: Vinashin Chairman Arrested )