Vo Tien Hung, general director of the Hanoi Sewerage and Drainage Company. Photo by VnExpress/Ba Do.
The general director of Hanoi Sewerage and Drainage Company has been detained for alleged violations in monopolistic acquisition of a lake cleaning agent.
Vo Tien Hung has been detained to be investigated for “offences against regulations on the management and use of state-owned property that leads to losses or wastefulness,” To An Xo, chief of staff and spokesman of the Public Security Ministry said Thursday.
Authorities have accused Hung of being involved in the monopolistic acquisition of Redoxy-3C, a water cleaning agent, to clean up over 100 lakes in Hanoi.
The probe into Hung is part of a developing investigation, also for violations of state assets management, at the Hanoi People’s Committee and relevant agencies, which began earlier this year.
The case is also one of three criminal cases under investigation involving Hanoi People’s Committee Chairman Nguyen Duc Chung, who has been suspended by the Prime Minister for 90 days earlier this month pending clarification of his responsibilites in the aforementioned cases.
In 2016, Chung invited a German company to Hanoi to research into and produce water cleaning agents for the capital’s numerous lakes.
In July that year, Redoxy-3C was created and Chung requested the Hanoi Sewerage and Drainage Company to use the cleaning agent to clean up pollution in over 100 lakes in the city. The product was considered a monopolized tech of the Hanoi People’s Committee.
But questions regarding the buying and actual effectiveness of Redoxy-3C have prompted Hanoi inspectors to launch an investigation into the acquisition, management and usage of the product in May last year.
In March, Hanoi inspectors confirmed that the drainage company had bought over 400 tons of Redoxy-3C from the German firm for VND137.6 billion ($5.94 million) from 2016 to the first quarter of 2019. By March, 380 tons of the product had been used.
However, inspectors did not point out any abnormalities in the acquisition of Redoxy-3C by the firm.