TWO CORRUPTION-TAINTED OFFICIALS SUSPENDED

UNCLAS SECTION 01 OF 02 HANOI 001485 SIPDIS SENSITIVE DEPARTMENT FOR EAP/BCLTV E.O. 12958: NA TAGS: PGOV PINS SOCI VM DPOL SUBJECT: TWO CORRUPTION-TAINTED OFFICIALS SUSPENDED REF: HANOI 1250 UNCLASSIFIED PAGE 02 HANOI 01485 01 OF 02 070942Z ¶1. (U) SUMMARY: TWO HIGH-RANKING GVN OFFICIALS, ONE THE NUMBER TWO PROSECUTOR AND ANOTHER A CENTRAL COMMITTEE MEMBER, HAVE BEEN SUSPENDED FROM THEIR GOVERNMENT AND SOME PARTY POSITIONS FOR SUSPECTED COMPLICITY WITH AN ALLEGED MAJOR CRIMINAL FIGURE. THESE MOVES ARE EXPECTED TO FACILITATE ONGOING INVESTIGATIONS INTO THE CASE, WHICH SO FAR HAS INVOLVED MORE THAN 100 ALLEGED ACCOMPLICES, REPORTEDLY INCLUDING POLICEMEN AND JOURNALISTS. THIS WELL-PUBLICIZED EFFORT NONETHELESS WILL LIKELY BE INSUFFICIENT IN CONVINCING THE PUBLIC THAT CPV AND GVN ACTIONS AGAINST WIDESPREAD CORRUPTION AND GROWING CRIME ARE EFFECTIVE. END SUMMARY. ¶2. (U) ON MAY 31, STATE PRESIDENT TRAN DUC LUONG ORDERED THE SUSPENSION OF PHAM SY CHIEN, DEPUTY HEAD OF THE SUPREME PEOPLE'S PROCURACY. ON THE SAME DAY, PRIME MINISTER PHAN VAN KHAI AUTHORIZED THE SUSPENSION OF TRAN MAI HANH FROM HIS POSITION AS GENERAL DIRECTOR OF VIETNAM STATE RADIO. (NOTE: THE SUPREME PEOPLE'S PROCURACY REPORTS TO THE STATE PRESIDENT RATHER THAN THE PRIME MINISTER. END NOTE.) THE TWO DECISIONS CAME AFTER THE CPV POLITBURO AND SECRETARIAT HAD ENDORSED RECOMMENDATIONS TO SUSPEND CHIEN AND HANH FROM THEIR SEATS ON THE POLITBURO-APPOINTED SUPREME PEOPLE'S PROCURACY PARTY COMMITTEE AND THE POLITBURO-APPOINTED VOICE OF VIETNAM PARTY COMMITTEE, RESPECTIVELY. EARLIER, THE NATIONAL ASSEMBLY STANDING COMMITTEE AND NATIONAL ELECTION COUNCIL HAD ORDERED THAT HANH'S NAME BE DROPPED FROM THE LIST OF FINAL CANDIDATES ONLY THREE DAYS BEFORE THE MAY 19 NATIONAL ASSEMBLY ELECTION (REFTEL). HANH HAS FOR NOW NOT LOST HIS SEAT ON THE UNCLASSIFIED PAGE 03 HANOI 01485 01 OF 02 070942Z CPV CENTRAL COMMITTEE, HOWEVER. ¶3. (SBU) THESE CASES STEM FROM ALLEGED CONNECTIONS WITH AND ASSISTANCE TO TRUONG VAN CAM, AKA "NAM CAM," ROUTINELY DESCRIBED AS A MAJOR HO CHI MINH CITY (HCMC) CRIME SYNDICATE BOSS. IN MAY 1995, NAM CAM HAD RECEIVED A THREE-YEAR ADMINISTRATIVE DETENTION TERM, BUT WAS RELEASED IN OCTOBER 1997. CHIEN AND HANH REPORTEDLY ISSUED A NUMBER OF OFFICIAL DOCUMENTS AT THAT TIME ASKING NAM CAM'S EARLY RELEASE, ALLEGEDLY ONLY AFTER NAM CAM'S WIFE SPENT "BILLIONS" OF VIETNAMESE DONG TO SECURE HIS FREEDOM. ONE SENIOR SUPREME PEOPLE'S PROCURACY OFFICIAL COMMENTED PRIVATELY TO EMBOFF THAT NAM CAM'S RELEASE WOULD HAVE BEEN "IMPOSSIBLE WITHOUT INTERVENTION OF PHAM SY CHIEN, AND THOSE FROM OTHER CENTRAL OFFICES LIKE HANH." ¶4. (U) ACCORDING TO LOCAL OBSERVERS, THIS IS THE FIRST TIME IN VIETNAM THAT HIGH-RANKING GVN OFFICIALS HAVE BEEN TARGETED FOR THEIR INVOLVEMENT -- HOWEVER INDIRECT -- IN VIOLENT CRIMINAL ACTIVITY, ALTHOUGH THE GVN HAS IN THE PAST TAKEN ACTION AGAINST OFFICIALS INVOLVED IN FRAUD AND CORRUPTION. "AN NINH THE GIOI," THE MINISTRY OF PUBLIC SECURITY'S NEWSPAPER, TOUTED THE SUSPENSIONS OF CHIEN AND HANH AS EXAMPLES OF THE CPV AND GVN ACTING TO STEM THE "MORAL DEGRADATION OF STATE OFFICIALS." THERE HAVE ALSO BEEN MEDIA EXPOSES OF CHIEN'S ALLEGED "HUGE" ASSETS; SOURCES IN THE CPV INVESTIGATION COMMISSION HAVE LEAKED TO THE PRESS THAT CHIEN HAD NOT DECLARED MANY OF THESE ASSETS. UNCLASSIFIED PAGE 04 HANOI 01485 01 OF 02 070942Z ¶5. (U) POLICE RE-ARRESTED NAM CAM IN DECEMBER 2001 BASED ON A TIP-OFF THAT HE HAD ORDERED THE MURDER OF RIVAL ORGANIZED CRIME BOSS "DUNG HA." SO FAR, MORE THAN 100 ALLEGED ACCOMPLICES HAVE ALSO BEEN ARRESTED; A SENIOR MINISTRY OF PUBLIC SECURITY (MPS) OFFICIAL IN LATE MAY TOLD THE PRESS THAT THE INVESTIGATION WOULD LIKELY LAST UNTIL AT LEAST OCTOBER, WITH MORE ARRESTS EXPECTED TO FOLLOW. ¶6. (SBU) COMMENT: THESE SUSPENSIONS AND WELL- PUBLICIZED CAMPAIGNS AGAINST CHIEN, HANH, AS WELL AS NAM CAM HIMSELF ARE LIKELY DESIGNED TO CONVINCE THE PUBLIC THAT THE CPV AND GVN ARE RESOLUTE IN MOVING AGAINST BOTH ORGANIZED CRIME AND OFFICIAL CORRUPTION. THE MEDIA ATTENTION IS WITHOUT DOUBT THE RESULT OF AN EXPLICIT CPV DECISION, NOT THE RESULT OF INDEPENDENT INVESTIGATIVE JOURNALISM, WHICH IS VIRTUALLY NON- EXISTENT IN VIETNAM. THE CPV IS TRYING TO CONVINCE THE PUBLIC BY THESE ACTS THAT, AS A RECENTLY REPORTED CPV GUIDELINE STATED, THERE IS "NO FORBIDDEN AREA" IN INVESTIGATING AND PUNISHING CPV MEMBERS AND GVN OFFICIALS WHO COMMIT MISTAKES AND ENGAGE IN WRONGDOING. GIVEN WIDESPREAD PUBLIC CONCERN ABOUT MALFEASANCE AND GROWING CRIME, HOWEVER, IT IS DOUBTFUL IF THESE TOKEN UNCLASSIFIED UNCLASSIFIED PTQ1302 PAGE 01 HANOI 01485 02 OF 02 070942Z ACTION EAP-00 INFO LOG-00 NP-00 AID-00 ACQ-00 CIAE-00 DINT-00 DODE-00 DOEE-00 SRPP-00 DS-00 ED-01 FBIE-00 UTED-00 VC-00 HHS-01 H-01 TEDE-00 INR-00 LAB-01 L-00 VCE-00 AC-01 NSAE-00 NSCE-00 OMB-01 OPIC-01 CAEX-01 PA-00 PM-00 PRS-00 ACE-00 P-00 SP-00 TEST-00 TRSE-00 USIE-00 PMB-00 DSCC-00 DRL-02 G-00 NFAT-00 SAS-00 /010W -------------- B99FBF 070942Z /38 R 070937Z JUN 02 FM AMEMBASSY HANOI TO SECSTATE WASHDC 6696 INFO AMCONSUL HO CHI MINH CITY AMEMBASSY VIENTIANE AMEMBASSY PHNOM PENH USCINCPAC HONOLULU HI UNCLAS SECTION 02 OF 02 HANOI 001485 SIPDIS SENSITIVE DEPARTMENT FOR EAP/BCLTV CASES WILL GO VERY FAR IN RE-BUILDING PUBLIC TRUST IN UNCLASSIFIED PAGE 02 HANOI 01485 02 OF 02 070942Z EITHER GVN LAW ENFORCEMENT AGENCIES OR IN THE CPV'S ABILITY TO POLICE ITSELF. PORTER UNCLASSIFIED