Interpol hunts Vietnam shipping officials

Interpol has issued a global search warrant for two former officials of Vietnam's troubled state-owned shipbuilder, state media said Sunday. The wanted pair are Ho Ngoc Tung, former chief finance officer of Vinashin (Vietnam Shipbuilding Industry Group) and Giang Kim Dat, former business manager of a Vinashin subsidiary, Tuoi Tre newspaper reported. The two men are among 10 officials under investigation over the group's debts, which amounted to at least 80 trillion dong (4.3 billion dollars). The other eight are in police custody. Giang and Tung went abroad before cases involving them were prosecuted in August 2010 by the Ministry of Public Security. Tung went to Australia for medical treatment and has not returned to Vietnam since, the paper reported. The warrants were issued at Vietnam's request. Vinashin's debts have threatened Vietnam's global financial reputation, with local media recently citing government inspectors' reports that the shipbuilder could lose almost another $1 billion because of penalties on unfulfilled contracts. The inspectors found 16 Vinashin managers responsible for the crisis but said most of the blame lay with former chairman Pham Thanh Binh, the Thanh Nien newspaper said. Binh was arrested last August on a charge of violating state economic management regulations. Several other former executives have also reportedly been detained. The inspectors called for seven separate criminal investigations to be launched into Vinashin and its subsidiaries, Thanh Nien said. In December the company defaulted on the first $60 million installment of a $600 million loan arranged by Credit Suisse in 2007. The troubles sparked investor fears the scandal was symptomatic of wider problems at state-owned firms, a key part of the economy. Ratings agencies cited Vinashin's troubles in downgrading Vietnam's sovereign ratings last year. The government said no political leaders will be punished for the problems at Vinashin, and the company is being restructured.