An appeal court in Vietnam yesterday upheld the death sentence against the director of a state-run company for embezzling millions of dollars in a major corruption scandal, but two former ministers had their jail terms suspended.
After two weeks of hearings, the Supreme People's Court in Hanoi ruled that the death penalty handed down in December to La Thi Kim Oanh, the 48-year-old disgraced director of an investment and marketing company, should stand.
It was the most high profile corruption trial since three senior Communist Party officials were jailed last June for their association with Ho Chi Minh City mafia boss Nam Cam, who is awaiting execution.
Oanh was convicted of misappropriating US$4.7 million and causing losses of US$2.2 million to state coffers from 1995 until her arrest in June 2001. The company was under the control of the Ministry of Agriculture and Rural Development.
Dressed in green and white prison pyjamas, Oanh, who contested the embezzlement charges but admitted to mismanaging state funds, remained expressionless as the televised verdict was read out.
She has seven days in which to appeal for presidential clemency -- her last chance to escape the firing squad.
The appeal court's verdict had been widely expected, as the communist regime, in a bid to restore its moral and ideological legitimacy, has vowed to stamp out rampant corruption that permeates the government and the bureaucracy.
Graft is one of the principal sources of discontent among Vietnam's population and also a major grievance of foreign investors.
However, the three-panel bench commuted the three-year prison term handed down to Nguyen Thien Luan, a former deputy agriculture minister convicted of aiding and abetting Oanh, to a suspended two-year sentence.
The court said the decision was based on the 62-year-old's "sincere testimony" and his achievements while holding office.
Another former deputy minister, Nguyen Quang Ha, 66, also had his three-year sentence commuted to a suspended sentence due to his age, high blood pressure and his family's contribution to Vietnam's revolutionary cause.
During the appeal trial Agriculture Minister Le Huy Ngo testified on behalf of Ha, the first time in modern history that an acting minister has appeared before a court as a witness.
Ha and Luan have both denied any criminal activity.
The court also reduced by one year the four-year prison term for a ministry official, but another bureaucrat and three company executives had their original sentences -- ranging from four to 15 years -- upheld.
"The serious criminal behavior of the defendants has caused indignation among public opinion and undermined the trust of the people in the management of the state apparatus," said Nguyen Hung Cuong, the presiding judge.
The scandal revolved around a series of contracts awarded by the agriculture ministry to Oanh's company.
With the aid of nine letters -- seven signed by Ha and two by Luan -- she was able to raise US$8.4 million from four state-run banks to fund four projects in advance of the eventual release of ministry funds.
However, only a small amount of this money was spent on the projects.
Oanh has admitted that the rest was irresponsibly spent on company expenses such as overseas fact-finding missions, and illegal "gifts" to officials from various ministries and provinces. The alleged recipients denied her claims in court.
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