Police said they have arrested the chairman of a subsidiary of state-owned shipbuilder Vinashin, the sixth senior Vinashin official arrested in the past two months, for further investigations into the financially troubled group.
To Nghiem, 51, chairman of the Cai Lan Shipbuilding Company, was accused of buying second-hand equipment for a US$36 million diesel-fired power plant in 2003, resulting in technical problems of four turbines.
Government inspectors say the power plant was therefore forced to close in October 2009 and lost VND62 billion ($3.2 million). The company is unable to repay VND107 billion ($5.5 million) of its bank loans.
Nghiem has been charged with “deliberately acting against state regulations on economic management.”
The overextended state conglomerate has racked up some $4.5 billion in debt, leading the government in July to reorganize the firm and later arrest several executives for mismanagement.
Nghiem is the sixth senior Vinashin official arrested in the past two months, including two former chief executives of the company - Vu Thanh Binh and Tran Quang Vu.
Deputy Prime Minister Nguyen Sinh Hung has asked the Finance Ministry to consider Vinashin's proposal to spend $300 million in sovereign bonds funds to pay off its debt at the French investment Natixis bank.
The debt-laden shipbuilder was ordered to work with Vietnam National Oil and Gas Group (PetroVietnam) to negotiate with Natixis over the amount owed and the deadline for payment.
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