Health official arrested in medical equipment scam, businesswoman wanted

Police arrested Phan Huy Anh Vu, Director of Dong Nai's Department of Health, on Friday and are searching for Nguyen Thi Thanh Nhan, former chairwoman and CEO of Advanced International JSC (AIC), over a scam in the southern province.

Nhan, 53, and Vu, 55, were accused of “violating regulations on bidding, causing serious consequences,” To An Xo, spokesperson for the Ministry of Public Security, said.

When committing the charged offense, Vu was Director of Dong Nai General Hospital, which was put into operation in April 2015 after several years of construction, according to police. The equipment procurement bidding scam took place at the hospital.

Police are also investigating charges against seven others, namely former AIC Deputy CEO Hoang Thi Thuy Nga; Nguyen Cong Tien CEO of New Generation Valuation JSC; Ninh Van Sinh, an ex-valuator at the company; Vu Quang Ngoc, Deputy Director of Medicosult Vietnam Joint Venture; and three AIC employees - Nguyen Quang Minh, Nguyen Tien Thu, and Hoang The Quynh.

Police said they are all involved in the bidding for packages to purchase medical equipment for the Dong Nai General Hospital project, which was approved by provincial authorities at an investment of over VND1.9 trillion ($82.9 million).

Investigators found violations during the preparation of dossiers for the tenders of 12 packages to purchase medical equipment in the 2013-2015 period. Executives from AIC, the consulting firm and valuation company have "colluded, inflated the price” of medical equipment, enabling AIC to win 12 packages at VND476.87 billion ($20.77 million), causing damages of some VND152 billion ($6.62 million).

AIC was established in 2005, specializing in labor export. It has become a multi-sector corporation with more than 10 subsidiaries. In recent years, the company has won numerous bidding packages to supply equipment in healthcare and education across the country.