Vietnam’s former health minister accused of receiving $784,000, admits to $288,210 in hospital project scandal

The Investigation Police Agency under the Ministry of Public Security has proposed prosecuting Tien and eight subordinates for violating regulations on the management and use of state property, causing losses and wastefulness under Clause 3, Article 219 of the Penal Code.

The findings, issued by the agency, alleged that Tien and the eight subordinates breached rules on the management and use of state assets, causing losses and wastefulness totaling over VND803 billion ($30.9 million).

The case centers on the second campuses of Bach Mai Hospital and Viet Duc University Hospital in Ninh Binh Province, northern Vietnam.

As of the end of 2024, more than VND5 trillion ($192 million) in state budget funds had been disbursed for the projects.

During the implementation, the management board for key health projects violated regulations by hiring foreign consultants to prepare project proposals and technical designs without approval from the prime minister.

Despite lacking authorization, Nguyen Chien Thang, then head of the board, signed submissions requesting permission to employ foreign consultants and forwarded them to Tien for approval.

Thang allegedly directed subordinates to legitimize improper contractor appointment dossiers, resulting in state asset losses of VND70.2 billion ($2.7 million).

Additional violations allegedly occurred in the approval of contractor selection plans.

Though the proposals lacked proper technical justification and failed to divide bidding packages appropriately, they were still reviewed and submitted for Tien’s signature.

Subsequent contractor selection and execution were found to be in breach of regulations, leading to delays, obstacles, and VND733.5 billion ($28.2 million) in state losses due to inefficiency and wastefulness.

Conflicting testimony over payments

Thang admitted to receiving VND88.4 billion ($3.4 million) from contractors and distributed funds to various officials.

In testimony, Thang admitted that he had given Tien VND12.9 billion ($495,720) and $100,000.

He also claimed to have paid VND3.47 billion ($133,345) to Nguyen Huu Tuan, former director of the management board of key health projects, and VND2.97 billion ($114,130) to Tran Van Sinh, head of the technical and cost estimation division under the management board of key health projects.

Thang said he also handed $2 million to Le Thanh Thiem, director of Sao Nam Song Hong Co., Ltd., to facilitate payments to an inspection delegation from the Central Inspection Commission in hopes of avoiding scrutiny.

However, Thiem did not pass the money to any organization or individual but instead appropriated it.

Thang also admitted to spending VND500 million ($19,210) on Lunar New Year gifts for the health ministry's former leader, allocating VND5.5 billion ($211,350) for individuals within the management board of key health projects, and distributing VND2.4 billion ($92,230) to individuals in various ministries.

For his part, Tuan confessed to receiving VND12.17 billion ($467,670) from three contractors.

He told investigators he gave VND5 billion ($192,140) to Tien, while spending nearly VND6 billion ($230,570) on board activities and more than VND1.2 billion ($46,110) on personal use.

He also acknowledged receiving VND2.47 billion ($94,915) from Thang on multiple occasions.

Tien, meanwhile, admitted to violations related to approving the use of foreign consultants and architectural design selections.

However, she acknowledged accepting only VND2.5 billion ($96,070) from Thang on several occasions and a single payment of VND5 billion ($192,140) from Tuan, totaling VND7.5 billion.

She denied knowledge of the money’s origin and said there had been no prior agreement regarding payments.

Confrontations between Tien and her subordinates during the investigation resulted in all parties maintaining their respective accounts.

During the investigative phase, the defendants and related individuals paid a combined VND44.7 billion ($1.7 million) in restitution.

Alleged kickback scheme

According to investigators, during the implementation of the two hospital projects and the selection process for 10 construction packages, contractors approached Tien or Thang to seek assistance in securing the contracts.

When the contractors contacted Tien, she allegedly directed them to coordinate with Thang.

For those contractors who directly contacted Thang, he would report the matter and seek approval from Tien.

Once the former health minister agreed, he would discuss and reach an arrangement for the companies to carry out the contract package.

He then instructed Sinh to coordinate with construction and consulting contractors to manipulate bidding outcomes in line with prior agreements.

The contractors allegedly agreed to pay kickbacks equivalent to five percent of the pre-tax value of advance payments or disbursements.

Through this arrangement, those contractors involved in the 10 construction packages paid Thang a total of VND88.4 billion ($3.4 million).

After Thang’s retirement, Tuan, initially deputy director and later director of the management board, continued receiving five-percent kickbacks.

However, due to project delays and implementation difficulties, he was accoused of collecting only VND12.17 billion from three contractors.

In April 2025, a conclusion by the Government Inspectorate found that the former health minister and a former deputy minister in office at the time had committed violations at multiple stages of the projects, from approving the policy to hire foreign consultants to lax oversight, allowing numerous irregularities that caused losses and wastefulness totaling more than VND1.2 trillion ($46.1 million) at the second campuses of Bach Mai Hospital and Viet Duc University Hospital.

Tien, who served as minister of health from 2011 to 2019, directly signed decisions related to both projects between 2013 and 2017.