Tuesday, March 27, 2012

Trial opens in Vietnam in shipbuilding scandal that hurt the country’s credit rating

HANOI, Vietnam — Nine former senior executives of a Vietnamese state-owned shipbuilding giant go on trial Tuesday for allegedly causing losses of $43 million to the state in a high-profile case that damaged the country’s credit rating.

Former chairman Pham Thanh Binh of the Vietnam Shipbuilding Industrial Group, known as Vinashin, and the others are accused of intentionally contravening government regulations that nearly led to the conglomerate’s collapse.

The losses occurred during the purchase of three used ships without government approval and while importing two used power plants.

If convicted, the former executives face up to 20 years in jail. The trial is being held in the northern port city of Hai Phong.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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