` Japan Suspends Development Aid to Vietnam over Bribery Case ‘

#AceFinanceNews – TOKYO – June 04  – Japan has temporarily suspended official development aid to Vietnam over a bribery case, officials said Tuesday. Fresh yen loans and funding for an ongoing urban railway project have been frozen.

The decision was taken after six Vietnamese railway officials were detained over allegations of corrupt payments, AFP reported, citing a statement by Japan’s Foreign Ministry.

In March, Japanese media reported that the national tax agency had flagged up 100 million yen (US$100,000) worth of payments that could not be properly accounted for.

Japan Transportation Consultants Inc. is reportedly suspected of having paid the money to officials in Vietnam, Uzbekistan and Indonesia.

(Japan Times) – Said the message was conveyed during a bilateral progress meeting, after six Vietnamese railway officials were detained in May over a contract awarded to Tokyo-based Japan Transportation Consultants Inc.

The Japanese side said it would resume the aid when Hanoi investigates whether JTC or state-owned Vietnam Railways Corp. broke the law, and demanded that Vietnam take steps to prevent a recurrence, the embassy said.

It added that the two sides would meet again late this month, when the Japanese side will consider resuming assistance after studying the outcome of Vietnam’s investigation and any measures it is taking.

JTC said in April that an independent panel found it had paid ¥160 million in kickbacks to officials involved in projects in Vietnam, Indonesia, Uzbekistan between 2009 and 2014. Its payments to secure an aid project in Vietnam were estimated at ¥66 million.

Japan Times – AFP 

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