Prime Minister Phan Van Khai on March 29 signed a decision to suspend Nguyen Viet Tien, Deputy Minister of Transport so that the investigating agency could determine his involvement related to financial scandals at Project Management Unit 18 (PMU 18).

Deputy Minister Pham The Minh will temporarily replace Mr Tien and deputy minister Ngo Thinh Duc will be charged with implementing ODA-funded projects from inside and outside the country.

Speaking at the press conference, Mr Binh admitted weaknesses in the leadership of the Ministry’s Party Committee. Mr Bui Tien Dzung, general director of PMU18 was later backed to participate in the standing board of the Ministry’s Party Committee, and PMU18 was praised as a clean and strong unit despite its ineffective operation for many years.

While loss rates on projects were stated at less than 1 percent earlier by Mr Tien, Mr Binh said "No one, no organisation and no agency can define what the loss rates are. Some opinions set the loss rates at 10 percent, 15 percent or even 30 percent. The loss rates must be based on the appraisal of specific projects. This was only Mr Tien’s own opinion and the investigating agency will arrive at a clear conclusion on the matter."

Concerning the procurement of a fleet of cars from project management units by the Ministry of Transport, Mr Binh said the Ministry of Transport was assigned as the investors in many projects. During the project implementation process as regulated, the purchase of cars to supervise projects was approved. Since 1995, at the conclusion of a project, many ministry leaders continued to use cars provided by project management units, a practice in line with regulations.

The Ministry of Transport has asked leaders of corporations under the ministry to keep strict control over operating projects to avoid the negative phenomena and violations that arose in the PMU 18 case, Mr Binh added.