The Lam Dong Provincial People's Court spent Monday (24/9) examining violations at EVN Binh Thuan (Binh Thuan Power Company) between 2017 and 2023.

Huynh Tuan An (62, Chairman of the Board of Directors and General Director of Tuan An Group), Tran Ngoc Linh, and Nguyen Thanh Ngon (two former directors of EVN Binh Thuan) were prosecuted for violating bidding regulations with serious consequences, bribery, and other charges.

Tuan An Electrical Equipment Joint Stock Company (a subsidiary of Tuan An Group) was accused of being a front for EVN Binh Thuan, helped by Linh and Ngon to win 25 equipment procurement packages illegally, causing 50 billion VND in direct losses and over 156 billion VND in tax losses.

Defendant Huynh Tuan An. Photo: Khai Nguyen

The unspoken rules at EVN Binh Thuan

Huynh Tuan An confessed to the accusations. He admitted to meeting Linh in late 2016. They agreed that Tuan An Group would win bids for electrical equipment in exchange for 5-6% of the profits going to EVN Binh Thuan leadership.

Before Linh retired in November 2021, An and his subordinates were introduced to the new director, Nguyen Thanh Ngon, to continue the arrangement.

One month before each bidding process, An instructed his staff to contact EVN insiders to obtain advance information about upcoming procurement needs, including item lists and technical specifications.

According to the indictment, EVN Binh Thuan used inflated price quotes from Tuan An to approve the bidding budget. They also identified existing and required items with tailored technical specifications, adding parameters specific to Tuan An's products to ensure the company won.

An admitted to using inflated quotes from Minh Hoa Company, Minh Cuong Thinh Company, and Polymer Alpha Company, all about 5% higher than Tuan An's, using these companies as bidders to create a false sense of competition.

From 2017 to 2023, Tuan An won 25 bids, facing virtually no competition.

The prosecution identified these actions as violations of bidding laws due to collusion, fraud, breaches of fairness and transparency, and the disclosure and receipt of bidding documents before their official release.

From the substantial profits, An instructed staff to pay Linh, Ngon, and the EVN Binh Thuan team over 9.1 billion VND.

An's and other defendants' testimonies corroborated the investigation's findings regarding bribery. Linh and Ngon received illicit payments from Tuan An Group representatives during annual holidays.

The defendants at the Lam Dong Provincial People's Court. Photo: Khai Nguyen

Prosecution rejects all defenses

The prosecution argued the defendants' actions exemplified collusion between businesses and officials for winning bids, inflating prices, and engaging in unfair competition, impacting businesses, the electricity sector's reputation, and demanding strict penalties.

An also directed the use of two accounting systems (actual and fabricated figures) and purchased 1,163 fake invoices to inflate input costs, reduce profits, and evade over 156 billion VND in taxes.

Considering mitigating factors like confession and full restitution, the prosecution recommended 7-8 years for bribery and 3-4 years for accounting violations, totaling 10-12 years for An.

For Tran Ngoc Linh, Nguyen Thanh Ngon, Truong Tan Dat (former Deputy Director and Head of Planning and Materials Department), and Le Quang Nghia (former Head of Planning and Materials Department), sentences of 4-9 years were recommended.

Defendants charged with violating bidding regulations faced 3-5.5 years; those charged with accounting violations faced 2-5 years; and those charged with illegal invoice printing, distribution, and purchase faced 6 months suspended to 3 years.

Defendant Nguyen Thanh Ngon at the trial. Photo: Khai Nguyen

The former EVN Binh Thuan leaders and their lawyers argued that Tuan An Group was favored due to its "quality products and experience with electrical projects in many provinces, especially in the southern region."

Ngon claimed he merely continued his predecessor's practices after becoming director in November 2021 and hadn't discussed profit-sharing with Tuan An Group.

The prosecution rejected these arguments, asserting that favoring a connected company constituted unfair competition. If a company had quality products at reasonable prices, it wouldn't need to resort to illegal tactics to win bids.

Regarding Ngon's claims, the prosecution cited his and others' testimonies, showing he had discussed arrangements with Tuan An representatives, even requesting a higher percentage than in previous contracts.

The court adjourned to deliberate, with a verdict expected on the morning of 26/9.

Khai Nguyen