Industry minister grilled over responsibility in loss-making projects

15:16 | 16/11/2016 Events

Minister Tran Tuan Anh has been questioned by National Assembly deputies over the responsibility of the Ministry of Industry and Trade (MOIT) and other relevant agencies for five large projects using State funds but making huge losses.

Industry minister grilled over responsibility in loss-making projects

Minister of Industry and Trade Tran Tuan Anh

They include the Dinh Vu polyester plant, the Ninh Binh fertiliser plant, the Dung Quat ethanol plant, the Thai Nguyen steel mill expansion project and the Phuong Nam pulp mill, all of which now face the risk of bankruptcy.

Minister Anh said these projects belonged to different fields and there was no single reason accounting for the failures of all of them, but he noted that they had all gone through investment periods longer than initially planned.

These delays could be attributed to unqualified human resources and external factors, such as sharp falls in global oil prices.

The minister said that those projects were no longer economically efficient, and that even if they were put into commercial operation, revenues would not be sufficient to offset costs, adding that they could be sold or allowed to go bankrupt.

He also stated that those managing such projects would be severely punished or even face criminal charges if found to be intentionally violating the law.

But Deputy Nguyen Tien Sinh from Thai Binh Province was not satisfied with Minister Anh’s answer and urged him to elaborate on the accountability of the Ministry of Industry and Trade in managing State assets.

The minister said such projects had been approved prior to 2012, so they were assigned to corporations under the management of the Government, without the involvement of the MOIT.

Those corporations would be the direct administrators approving reports on economic viability and managing investments.

Minister Anh said it would take time to determine each the cause of each failure and the responsibilities of relevant parties./.

 

Source: NDO

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