HANOI – The Government has signed a decision dismissing Dao Van Hung from his post of chairman of Vietnam Electricity Group (EVN) over violations that caused serious losses to the group.
Under the decision, Hung left the position at the start of this month and was transferred to the Ministry of Industry and Trade. Pham Le Thanh, general director of EVN, has taken over the chairmanship.
Speaking at the press briefing on the Government’s regular meeting last Saturday, Vu Duc Dam, minister and chairman of the Government Office, confirmed the dismissal and described it as a normal decision.
During the operation process, EVN leaders, including Hung, made some mistakes which were reported by the media. For example, their poor operation caused heavy losses of trillions of dong to EVN Telecom, prompting the Government to transfer its business to the military-run telecom group Viettel, Dam told the media.
The Government last October asked the Ministry of Industry and Trade and Ministry of Finance to check power prices, evaluate EVN’s investments in the stock, banking and insurance sectors and review responsibility of individuals and groups related following a financial inspection by government inspectors.
The Ministry of Planning and Investment and EVN as of the end of 2011 had invested over VND2.1 trillion in non-core businesses, of which 99.8% ran into finance, banks and securities, but gained almost nothing from those investments. Meanwhile, the group also incurred losses in its main business of electricity.
EVN posted a loss of VND3.5 trillion in 2011, not to mention its spiraling debts which currently sit at VND15 trillion to Vietnam Petroleum and Gas Group and Vietnam National Coal and Mineral Industries Group.
