US embassy cable - 03HANOI3156

UNCLAS HANOI 003156 
 
SIPDIS 
 
STATE FOR EAP/BCLTV 
 
E.O. 12958:  N/A 
TAGS: PGOV, SOCI, VM, DPOL 
SUBJECT:  ANOTHER CORRUPTION CASE HITS SOME HI-FLIERS 
 
REF:  A.  HCMC 499   B.  HCMC 496   C. HANOI 2175 
 
1.  (U) Vietnamese media reported on December 3 the 
convictions of a former director of a real estate and 
marketing subsidiary of the Ministry of Agriculture and 
Rural Development (MARD) -- La Thi Kim Oanh, who received a 
death sentence -- and two former MARD vice ministers -- 
Nguyen Thien Luan and Nguyen Quang Ha, who each received 
three year sentences.  Two former MARD department directors 
(assistant-secretary equivalent) -- Huynh Xuan Hoang and 
Phan Van Quan -- were given four year prison terms, while 
three of the subsidiary's executives -- Do Duc Thuan, Pham 
Tien Binh, and Pham Chinh Nghia -- received 15, 14, and 10 
year sentences, respectively.  Based in part on letters of 
support from the MARD vice ministers, Oanh's company was 
able to borrow over USD4.5 million from various Vietnamese 
banks, but most of the monies were never used for their 
intended purposes and at least some was diverted for 
overseas trips, gifts to officials, and other personal uses. 
Oanh reportedly denied the specific charges of embezzlement 
but admitted she had used the money "irresponsibly."  All 
defendants now have the right to appeal. 
 
2.  (U)  When asked about the case in a recent interview 
with Ho Chi Minh's "Tuoi Tre" (Youth) newspaper, Minister of 
Public Security Le Hong Anh claimed that authorities had 
been unable to track down to which GVN officials Oanh and 
her company had given money or gifts, and therefore that 
none would be charged with corruption, although he added 
that the CPV's Control Department was still "providing 
guidance" to investigators who continued to work within 
MARD.  He admitted that "hundreds of billion dong" in this 
case remained "unaccounted for" and that "a hidden 
influence" and "underground network" continued to have a 
negative impact "within the state apparatus" on job 
distribution, fund allocation for projects, and 
"interference in the legal system." 
 
3.  (U)  Comment:  Like the even more high profile and 
dramatic Nam Cam case (refs a and b), the MARD case 
unusually toppled some relative hi-fliers, but likely failed 
to satisfy public perceptions that others at even more 
senior ranks remained untouched.  As noted in ref c, the CPV 
and GVN view the problem of corruption seriously and are 
taking some welcome steps to move against corrupt officials. 
However, the closed nature of this system and the self- 
regulatory nature of anti-corruption campaign limit 
effectiveness. 
PORTER