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VN investigates into Japanese ODA kickback allegations

VGP - The Ministry of Transport is verifying allegations that an executive of the Japan Transportation Consultants, Inc. (JTC) bribed Vietnamese transport officials in return for an ODA project.

March 23, 2014 6:54 PM GMT+7

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Deputy Minister of Transport Nguyen Ngoc Dong said the ministry has just learned about the news and immediately requested relevant agencies to clarify the time and those responsible for the project.

President of Viet Nam Railways’ Member Board Tran Ngoc Thanh said Viet Nam Railways (VNR) has yet to receive any official sources of information or request for investigation from Japan. However, it held a meeting with the project management board and concerned parties on March 23, urging them to verify the source.

JTC has won several infrastructure construction projects in Viet Nam. In 2005, it cooperated with the Pacific Consultants International (PCI) and the Japan Railway Technical Service (JARTS) in a consortium of contractors to provide services for the Ha Noi-HCM City railway route project.

Under the contract, the consortium conducted a feasibility study and technical design, supervised project implementation, and supported VNR in improving its infrastructure management capacity. It cost nearly VND150 billion and took 56 months to complete.

In 2009, a Viet Nam-Japan consultants group, comprising Vietnam’s Transport Investment and Construction Consultant JSC (TRICC), JTC, JARTS, and Nippon Koei, proposed Japan’s Shinkansen technology for an express railway project in Viet Nam.

Earlier, the Yomiuri Shimbun of Japan reported that JTC President Tamio Kakinuma admitted the Tokyo-based railway consultant firm had offered corrupt financial incentives to a number of Vietnamese railway officials to win the bidding package for a Japanese ODA-funded railway project in Viet Nam.

Tamio Kakinuma confessed to the alleged bribes during questioning by the special investigation squad of the Tokyo District Public Prosecutors Office.

Several Japanese newspapers reported JTC had paid Vietnamese officials ¥ 80 million worth of kickbacks to win a ¥ 4.2 billion railway contract./.

By Kim Loan