The Ministry of Transport announced the demotion of the general director of the state-run Vietnam Railways, Tuesday, citing “sluggish” progress.
Nguyen Dat Tuong will continue to serve on the company’s board of directors.
When asked to explain about the sudden reshuffle, Transport Minister Dinh La Thang said Tuong had not done his job well.
“As the head of a company that has put out a sluggish performance, he must be replaced and assigned to another job, that’s all,” Thang said.
Vu Ta Tung, the general director of Saigon Railways, a subsidiary of Vietnam Railways, will serve as Tuong’s replacement.
Minister Thang said he will continue to punish those responsible for wrongdoing in the railway sector, which was recently implicated in a bribery scandal involving a Japanese company.
The scandal emerged in March, when Japanese media reported that the national tax agency flagged 100 million yen ($100,000) - worth of payments that could not be properly accounted for, AFP reported.
Japan Transportation Consultants Inc. (JTC) which is involved in several official development aid programs, is suspected of having paid the money to officials in Vietnam, Uzbekistan and Indonesia.
Vietnamese investigators later arrested six people, including Tran Quoc Dong, a deputy general director of Vietnam Railways, reports said.
Japan temporarily suspended official development aid to Vietnam on Monday over the bribery case.
Japan said development aid would continue to be disbursed following an investigation in Vietnam and the implementation of measures to prevent any further malfeasance, a foreign ministry official told AFP, the following day.
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