This is one of the hottest scandal of the year. It display how dirty some of the highest ranking official in the country are as they abuse their power and took bribe to approve drugs beyond the safety of the popolation.
SGK is accused of paying Deputy Health Minister about US$100 K three years ago for one of its drugs approval.
SGK had not taken any stance regarding the accusation as yet.
Vietnam deputy health minister denies power abuse accusations
Last updated: 9/9/2011 17:35
http://www.thanhniennews.com/2010/Pages/20110909174820.aspx
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Deputy health minister Cao Minh Quang |
Vietnam’s deputy health minister Wednesday denied accusations that he abused power to force a pharmaceutical company to lend him VND1 billion (US$48,000).
Cao Minh Quang, deputy minister of the Ministry of Health, made the denial in an interview with the Tuoi Tre newspaper after several news sources reported that Nguyen Quoc Dung, director general of the BV Pharma Joint-Venture Company, had sent a letter to the health ministry containing the accusation of undue duress.
In a report published Wednesday, news website Dan Viet quoted Dung’s letter as saying Quang’s request for the loan had been made when Ngo Chi Dung, Quoc Dung’s predecessor, was at helm of the company in 2007.
Fearing that the official would abuse his power and cause trouble to the company, the former director general then called for a meeting and the board of directors then agreed to lend Quang VND1 billion under a written agreement, according to the news source.
However, in an interview with Tuoi Tre, Quang said because he had close ties with Chi Dung, he had borrowed money from him twice for a total of VND2 billion to deal with some family matters.
As of June 26, 2008, he had repaid his debt in full together with VND200 million in interest, the official stressed.
“If I had forced him to lend me money, there would have been no way that I would write and sign an agreement on the loan,” Quang said.
“I took a loan from an individual with a writing agreement and repaid both the debt and its interest in time, which was legal.”
Asked about Quoc Dung’s accusation that after he had repaid the loan, he had ordered an investigation into the company’s increasing imports of Pseudoephedrine hydrochloride, causing trouble, Quang said it was “unreasonable.”
According to Quang, he had only sent a letter to related agencies asking for an investigation into accusations that local drug dealers have been using Pseudoephedrine hydrochloride, which is used to produce common flu and allergy remedies, to illegally make methamphetamine.
“Now police, the Drug Administration of Vietnam and the Ho Chi Minh City Department of Health are inspecting BV Pharma, not any other company. So, it needs to rethink its operations,” Quang said.
He also raised questions about the identity of persons or firms to whom BV Pharma had sold its flu remedies, because during initial inspections, many drug stores said they didn’t buy products from the company.
Meanwhile, Dung, the former director general, told the newspaper that while he lent Quang VND2 billion in 2007, half of it came from his company, because he then didn’t have enough money[R1] .
He had paid the money back to the company later, Dung said, adding that as of June, 2008, Quang had paid his debts with interest.
Asked if Quang had forced him to lend him money, Dung, who now operates the Eco drugstore chain, said it is such a “sensitive” matter that it’s difficult to tell right from wrong.
Late last month the health ministry banned further import of the substance after finding a dramatic increase in its imports by a number of pharmaceutical companies between late 2010 and August 2011.
In its report published on August 30, Tuoi Tre quoted an anonymous accusing letter as saying that while approving some companies’ bulky imports of the substance, the Drug Administration of Vietnam gave BV Pharma priority to import and directly purchase four tons of pseudoephedrine from local companies.
The administration also allowed the company to circulate its pseudoephedrine-contained products under 13 different kinds of packaging.
This made it easier for BV Pharma to transport the substance to criminals who would take it to places where they could make drugs from it, the newspaper quoted the letter as saying.
However, Nguyen Quoc Cuong, deputy director general of BV Pharma, earlier told Tuoi Tre that their drugs are mainly distributed by Vietnam Medical Products Import – Export Joint-stock Company (Vimedimex) and the military-owned Dong Hai Company.
The company bought four tons of pseudoephedrine within the first six months, aiming to produce between 60-70 million tablets this year which is almost the same as last year’s output, he said.
Thanh Nien News
Health ministry to review accusations against official
Last updated: 9/19/2011 17:00
Vietnam’s health ministry will look into recent accusations against a deputy minister, Saigon Giai Phong quoted the health minister as saying Sunday.
Deputy Minister Cao Minh Quang is now facing accusations that he had made false statement of his qualifications and age, and abused power to ask the local BV Pharma Joint-Venture Company to lend him VND1 billion (US$48,000).
According to Minister Nguyen Thi Kim Tien, the accusations related to Quang’s qualifications was filed by Ngo Minh Nho, a war veteran inHo Chi Minh City, at the central government police.
Saigon Giai Phong quoted Tien as saying that the police sent a response letter to Nho, but did not send it to the health ministry.
In a report on Friday, VnExpress news website quoted the police as saying that Sweden-based Uppsala University, where Quang claimed to have earn a doctorate degree, in fact only granted him a certificate for his research about natural drugs.
The certificate, granted in October 1994, was a requirement for one to attend a doctorate course under the school’s regulations, the website quoted Uppsala University as saying.
According to VnExpress, the education ministry’s department of examinations and education quality testing also denied accusations that a former deputy education minister had certified that Quang’sUppsala certification’s value was equal to a doctorate degree.
In the meantime, Tuoi Tre on Monday reported that concerned agencies are also clarifying accusations that Quang made inconsistent statements about his age – in some documentaries he said he was born in 1953, but in others he stated that he was born in 1956.
Earlier this month, Nguyen Quoc Dung, director general of the BV Pharma Joint-Venture Company, had sent a letter to the health ministry, accusing Quang of abusing power to ask his company to lend him VND1 billion in 2007.
However, Quang later denied Dung’s accusations in an interview with Tuoi Tre, saying that he had paid up the debt in 2008.
Quang, who took office in 2007, received a warning once in 2009 from the Communist Party’s Central Inspection Committee for wrongly accusing USfirm Merck Sharp & Dohme (MSD) of unethical lobbying for cervical cancer vaccine Gardasil in 2008[R2] .
Thanh Nien News
All is not well
Last updated: 9/30/2011 9:00
Several scandals surface as turf war heats up between top health ministry officials
A woman buys medicine at a pharmacy inHanoi. A senior pharmaceutical official has been accused of giving favor to several firms for his own benefit.
Vietnam’s health sector has been shaken by developments over the last several weeks that have two of its top officials mired in accusations of major wrongdoings including academic fraud and shady approvals of drug imports.
Amidst rumors of a burgeoning turf war between the two, allegations have flown thick and fast about each other and an anti-corruption agency has entered the fray via public “denouncements” that have called for the removal of one official.
The two officials in question are Deputy Health Minister Cao Minh Quang and Drug Administration of Vietnam director Truong Quoc Cuong.
Local media have reported allegations that Quang had made a false statement in his CV in declaring that he has a doctor’s degree, and that he borrowed large sums of money from a local pharmaceutical firm in a shady deal.
Meanwhile, Cuong is accused of favoring a local firm in importing pseudoephedrine – a medical substance that can be used to make methamphetamine. In fact, he is reported to have favored several firms in their operations for his own benefit.
Denouncements
Last week, eight pharmaceutical firms have called for the removal of Cuong, accusing him of abusing his power to favor import applications made by some firms while rejecting others.
Senior officials – directors or deputy directors – of Imexpharm, Agimexpharm, S.Pharm, Minh Hai, Tipharco, Stada-Vietnam, Pymepharco and the Khanh Hoa Pharmaceutical Company have made the denouncements, Tuoi Trenewspaper reported on Monday.
They said Cuong had favored the BV Pharma Company in allowing it to import pseudoephedrine to make flu medicine. Cuong had approved the firm’s application to import the medical substance in just one or two days, while approvals for such substances usually take at least six months, they said.
In their denouncements, the eight firms said Cuong had also ignored a decision by the Health Ministry to halt the import of sabutramine following a warning from the World Health Organization that the substance could lead to harmful side effects on humans.
Tran Thi Dao, general director of Imexpharm, said they were denouncing Cuong because of “excessive sluggishness” that the medicine agency has displayed recently and were not making personal attacks.
“There has been no firm inVietnamthat has denounced the Drug Administration of Vietnam so far. We accept that we may have to… face any risks involved in when submitting the letters,” she said.
Cuong was also accused of approving the import of many medicines intoVietnamthat local companies could produce in the country.
The eight firms proposed to the Central Anti-Corruption Committee that Cuong be dismissed from his post.
The Central Anti-Corruption Committee has confirmed that they would meet with the Drug Administration of Vietnam, Health Ministry inspectors and the petitioning firms to verify accusations about the import of pseudoephedrine.
In another action, the Deputy Prime Minister Nguyen Xuan Phuc on September 21 signed a decision on coordination between agencies in managing legal activities involving additives.
Deputy Minister targeted
Meanwhile, the accusations against Deputy Health Minister Cao Minh Quang have focused on a purportedly false CV and a loan of VND2 billion (US$96,000) he took from a former general director of a local pharmaceutical company.
On Monday (September 26), the Ministry of Education and Training announced results of their verification of Quang’s degree following several media reports in the local media, citing unknown sources, alleging Quang had made false declarations about his degree.
According to the ministry, Quang had obtained a “licentiatexemen” at theUppsalaUniversityinSweden. The license is an “Intermediate Degree” which is at a lower level than a doctoral degree, it said.
This contradicts a statement by the education ministry itself in 2000 when it said Quang’s degree fromUppsalaUniversitywas equal to a doctoral degree inVietnam.
Following rumors about loans that he took from BV Pharma’s former general director Ngo Chi Dung in 2007, Quang confirmed the information, saying he had repaid them with interest by the due date on June 2008.
“I also borrowed money from a colleague at that time and my wife repaid it later,” he said, rejecting accusations he had forced Dung to lend him money.
However, in a petition denouncing Quang, Dung said he was forced to lend Quang the amount, VTC News reported.
“It was when my company was suffering losses of dozens of billions of dong a year. When Quang asked to borrow VND1 billion, the general director [Dung] had to discuss it with the board because of fears he could take action that could affect the company’s activities,” the news website cited Dung’s petition as saying.
Quang borrowed money from Dung at an interest rate of 7.44 percent a year when banks’ average interest rates were between 12 and 13 percent, Tuoi Tre reported.
Who benefits?
A recent editorial in Thanh Nien argued that accusations against two senior health officials could actually lead to more transparent health agencies that could better manage medicine prices that have been a heavy burden for poor patients inVietnam.
“Are they positive denouncements to improve drug administration or some ploy for personal benefit,” it wondered, also remarking that the denouncing game between “two groups” is not likely to stop soon.
But any expectations that the scandal would lead to positive developments in the local medicine market in terms of lower prices have been belied. The market has actually acted in a contrary manner.
Following the pseudoephedrine scandal, the prices of many medicines with the substance have actually increased. Pseudoephedrine is commonly used as a nasal/sinus decongestant and stimulant or as a wakefulness-promoting agent.
A recent investigation by Tien Phong found a price increase among medicines for flu, rhinitis and sinusitis that contain pseudoephedrine.
The price of Actifed, for instance, increased from VND600 to VND4,400 per tablet and Woaheder from VND300 to VND4,500 per tablet.
The price of local medicines have increased to up to eight times their earlier prices, including Eruvipharm and Savipharmed of the Savipharm Company, Glomed’s Glotifed and Tien Giang Pharma Company’s Acdiral. Pharmacies will also have to order the drugs in advance to have medicines delivered, instead of buying them at any time from wholesalers, the paper reported.
Thanh Nien News
Deputy health minister’s ‘doctorate’ actually a pre-doctorate: ministry
Last updated: 10/27/2011 16:30
http://www.thanhniennews.com/2010/Pages/20111027-Deputy-health-minister-found-making-false-claim-of-qualification.aspx
The Swedish “doctorate” a deputy health minister used to get his job is not a doctorate at all, Vietnamnet quoted the education ministry as saying Wednesday.
The degree Cao Minh Quang received from the Sweden-based UppsalaUniversityon October 26, 1994 was in fact an intermediate degree which is a pre-doctorate level degree, newspaper Tien Phong quoted the ministry’s quality control department as saying that day.
However, former deputy education minister Tran Van Nhung then certified that Quang’s certificate was equivalent to a doctorate degree, according to Vietnamnet.
The department conducted checks on Quang’s qualification as per his request, after Ngo Minh Nho, a war veteran inHo Chi Minh City, filed accusations at the central government police, saying that Quang had made false statements about his qualifications, the newswire said.
Later police concluded the certificate was granted to him for his research about natural drugs between 1992 and 1994, and that under the school’s regulation the certificate was a requirement for one to attend a doctorate course.
Thanh Nien News
Accusations against Vietnam deputy health minister investigated
Last updated: 11/18/2011 15:35
http://www.thanhniennews.com/2010/Pages/20111118-Accusations-against-deputy-health-minister-investigated.aspx
Prime Minister Nguyen Tan Dung has ordered the government inspectorate to investigate allegations that deputy health minister Cao Minh Quang has slanded a local drug company.
According to a letter sent to Dung, the Ho Chi Minh City-based BV Pharma Joint-Venture Co. claimed that Quang has falsely accused the company of illegally selling Pseudoephedrine hydrochloride. The substance is used to produce common flu and allergy remedies, but can also be used to make illegal methamphetamine.
Quang has also encouraged eight other drug dealers to make accusations related to the substance against BV Pharma, the company said. It urged government agencies to clarify the motivation of the official and the companies.
In September, the drug dealers filed accusations atVietnam’s anti-corruption agency, saying that BV Pharma was allowed to import a huge quality of Pseudoephedrine hydrochloride.
In its latest letter, BV Pharma also claimed that in his report to authorities, the deputy health minister falsely accused it of using corn starch to produce fake drugs, a report on Dan Viet, the news website of Vietnam Farmers’Union, said.
According to the report, BV Pharma asked the government to investigate many other “issues” related to Quang, such as abusing power to borrow money from the company, and faking a doctorate degree.
In September, BV Pharma sent a letter to the Ministry of Health, accusing Quang of abusing power by asking the company to lend him VND1 billion (US$48,000) in 2007.
Meanwhile, a war veteran in HCMC asked the central government police to clarify Quang’s qualifications on suspicions that he had made false statements about his qualifications.
In fact, the education ministry last month concluded that his doctorate degree, which was earned at a Swedish university in 1996, was a pre-doctorate degree.
By M.N, Thanh Nien News
Accusations against deputy health minister being probed: party official
Last updated: 11/25/2011 16:55
http://www.thanhniennews.com/2010/Pages/20111125-Vietnam-Party-investigates-accusations-against-deputy-health-minister.aspx
Internal inspectors of the Vietnamese Communist Party are investigating recent accusations against a deputy health minister, including that he falsely claimed to have a doctorate, the chief inspector said Thursday.
Ngo Van Du, head of the Party’s Central Inspectorate Committee, made the announcement one week after Prime Minister Nguyen Tan Dung ordered the government inspectorate to investigate accusations against Cao Minh Quang.
According to Du, the Secretariat of the Party’s Central Committee ordered the simultaneous investigation, because Quang is managed by the Secretariat.
The investigation is due to be completed within the year.
In September, a Vietnam War veteran inHo Chi Minh Cityasked the central government police to clarify Quang’s qualifications on suspicions that he had made false statements about his qualifications.
The education ministry last month concluded that Quang’s alleged doctorate degree, which was earned at a Swedish university in 1996, was actually a pre-doctorate degree.
Meanwhile, the HCMC-based BV Pharma Joint-venture Co. claimed that Quang has falsely accused the company of illegally selling Pseudoephedrine hydrochloride. The substance is used to produce common flu and allergy remedies, but can also be used to make illegal methamphetamine.
It also accused Quang of abusing power by asking the company to lend him VND1 billion (US$48,000) in 2007.
In 2009, the deputy health minister received a warning from the Party’s inspectorate for several violations, including false accusations against the US-owned Merck Sharp and Dohme (MSD)Vietnam.
Quang had sent an English accusation letter to MSD’s chief executive officer and administrative president for the Asia-Pacific region to complain about the company’s unethical lobbying activities related to a vaccine against the human papilloma virus, according to the inspectorate report at that time.
Thanh Nien News
[R1]The other half or exact 1.2 billion VND came from the account of SGK Vietnam, this bribery took place and SDK had not officially say a word despite all the media accusation. It is strange that this English version of the story on ThanhNien omit that part – Richard
[R2]This was in connection of the money paid by SDK- see other post on our blog