The Agency announced that it has transferred all files related to the case at the Ministry of Health, the Cuu Long Pharmaceutical Company, and involved units to the Supreme People's Procuracy after it had completed the investigation conclusion of the case ‘lack of responsibility causing serious consequences at the Ministry of Health, the Cuu Long Pharmaceutical Company and related units.
According to the investigation conclusion, for the prevention of the influenza A (H5N1) epidemic in 2005, the Ministry of Health ordered the Cuu Long Pharmaceutical Company and Oseltamivir drug manufacturing enterprises, the purchase price was determined on the basis of raw material prices negotiated with foreign suppliers. If the enterprise negotiates to reduce the price of raw materials, the competent authority will consider adjusting the price.
Since 2006, the Cuu Long Pharmaceutical Company has been reduced by foreign suppliers to buy raw materials by more than US$3.8 million. However, the accused Luong Van Hoa, former General Director, directed his subordinates to legalize reports and business documents to conceal and keep an amount of more than $3.8 million from the files.
In addition, the defendants also legalized records reported falsely to the Ministry of Health with the aim of retaining more than $3.8 million. During the investigation, the accused Hoa and Ngo Huu Nghia, former director of the Pharmaceutical Company, the branch in Ho Chi Minh City did not admit to receiving a discount to buy raw materials. But through the investigation, investigators have collected enough evidence, they determined that the group of former business leaders had put more than $3.8 million in their pockets.
According to investigators, former Health Deputy Minister Cao Minh Quang was assigned by the Ministry of Health to be the head of the steering committee to deal with issues related to Tamiflu, raw materials, and Oseltamivir.
During the inspection, Cao Minh Quang knew that the above enterprise still owed the supplier an amount of more than $3.8 million, but did not direct further clarification, although the Ministry of Finance later sent a letter requesting to continue inspection and clarification, the accused Quang still neglected the request.
At the investigative agency, defendant Cao Minh Quang said that the financial inspection was carried out by the deputy minister in charge of finance and was not part of the defendant's assigned tasks. The reason for not assigning inspection and clarification, defendant Quang said that he was busy.
However, in this case, defendant Cao Minh Quang admitted his shortcomings when he did not comply with the recommendations of the Ministry of Health, so he did not know that Cuu Long Pharmaceutical Company was given a discount to buy raw materials by a higher amount $3.8 million.
During the investigation, former Deputy Minister of Health Cao Minh Quang admitted the behavior and sincerely confessed his wrongdoings.
Previously, on March 11, the Investigative Police Agency prosecuted the defendants Cao Minh Quang and Duong Huy Lieu, former head of the Financial Planning Department under the Ministry of Health, to investigate the behavior of ‘lack of responsibility, causing serious consequences.
This is the Police Department for Corruption, Smuggling, and Economic Crimes (C03)’s investigation results to expand the case of violations of state regulations on accounting, causing serious consequences, which occurred at the Cuu Long Pharmaceutical Company and related units.
According to the investigative agency, initially, the two suspects, Quang and Lieu, did not check or evaluate the implementation of the terms of negotiation to reduce the purchase price of raw materials when liquidating the order contract manufacturing of Oseltamivir with Cuu Long Pharmaceutical Company.
Since then, the Ministry of Health has not discovered that the above enterprise was entitled to a discount to buy raw materials in the amount of more than $3.8 million, causing damage to the state.
In addition to Quang and Lieu, C03 also prosecuted Nguyen Nam Lien, former Director of the Department of Planning and Finance, Ministry of Health, former Deputy Head of the Management Board implementing the plan to prevent and control influenza A (H5N1).