Former Vietnam health minister Kim Tien faces prosecution over $2.68M losses in hospital projects

The Investigation Police Agency under the Ministry of Public Security has proposed prosecuting Tien, 67, for “violating regulations on management and use of State property, causing losses and wastefulness” under Clause 3, Article 219 of the Penal Code.

The agency has issued its conclusion on the investigation into the case of “Violating regulations on the management and use of State property, causing loss and wastefulness; fraudulent appropriation of property; and taking bribes,” which occurred at the Ministry of Health and related units.

The case is linked to the investment projects for the construction of the second establishments of the Bach Mai Hospital and Viet Duc University Hospital (Vietnam-Germany Friendship Hospital).

Along with Tien, others proposed for prosecution on the same charge include Nguyen Kim Trung, former Deputy Director of the Management Board of Key Medical Projects and former Deputy Director of the Department of Medical Equipment and Works under the Ministry of Health; Tran Van Sinh, former Deputy Director of the Management Board of Key Medical Construction Projects under the Ministry of Health; and Dao Xuan Sinh, former Director of the SHT Vietnam Investment, Construction and Consulting JSC.

The second Bach Mai Hospital in Hanoi under construction. Photo by Read/Ngoc Thanh

The agency has also proposed prosecuting Nguyen Chien Thang, former Director of the Management Board of Key Medical Projects, and Nguyen Huu Tuan, former Director of the Management Board of Key Medical Construction Projects, on two charges – “violating regulations on the management and use of State property, causing loss and wastefulness ” and “taking bribes.”

Le Thanh Thiem, Director of Sao Nam Song Hong Co., Ltd., has been identified for prosecution on the charge of “fraudulent appropriation of property.”

According to the investigation, although the Prime Minister had not approved the hiring of foreign consultants for project formulation and technical and construction design of the two projects, Thang still signed proposals for Tien to issue decisions permitting the engagement of foreign consultants and approving plans for architectural design selection.

The second Vietnam-Germany Friendship Hospital in Hanoi is left half-finished. Photo by Read/Ngoc Thanh

The proposals also allowed VK Architects and Engineers to prepare and present architectural design options and approve the results of the architectural design selection for both projects.

Based on the approved architectural plans, Thang directed subordinates, including Trung, Tuan and Sinh, to finalize and legitimize contractor appointment dossiers in violation of legal regulations, enabling the VK Studio – Institute of Medical Equipment consortium to implement consultancy packages TV4/2014 and TV5/2014. The acts, in coordination with Sinh, caused State asset losses of more than VND70 billion (US$2.68 million).

In addition, to ensure the projects’ progress, Thang directed that bidding packages not be divided according to technical characteristics and implementation sequence to maintain project synchronization.

Although the proposal lacked sufficient grounds for such non-division, Nguyen Doan Tu, then Deputy Director of the Department of Medical Equipment and Works, chaired appraisal meetings and submitted documents for Tien to approve the decisions.

Following Tien’s approval, Thang directed the preparation and approval of bidding documents, contractor selection and implementation of packages XDBM-01 and XDVD-01 in violation of regulations. Numerous irregularities led to difficulties in project implementation, causing delays, suspension and failure to meet set objectives, resulting in waste of more than VND733 billion ($28.14 million) in State assets.