Company owner jailed for Covid test kit fraud

In a significant legal development, businessman Phan Quoc Viet has been handed a 25-year prison sentence for abuse of power and fraud in connection with the production of a new Covid-19 test kit. The Hanoi Military Court also imposed sentences on officials from the science and defense ministries who played a role in facilitating the company's fraudulent acquisition of a license for the test kit.

The indictment revealed that Trinh Thanh Hung, a deputy head in the Ministry of Science and Technology, initiated a research project for a test kit in response to the Covid-19 outbreak. He enlisted the support of Viet and Son, a former deputy director at a research institute operated by the Military Medical School, for the project. Although the medical school received over VND 18 billion (approximately US$742,000) in government funding, the licensed test kit submitted for approval belonged to Viet A.

This move enabled Viet A to mass-produce the test kit, generating over VND 1.2 trillion in revenue. Trinh Thanh Hung received a 15-year sentence, while Son was sentenced to 12 years, both for abuse of power, and they were ordered to return the research funds. The court found the defendants guilty of committing fraud for personal gain, causing financial loss to the government and undermining public trust in the military. The health ministry revoked the license in June 2022, citing procedural irregularities. Viet A and its CEO, Phan Quoc Viet, are set to face another trial on January 3, involving former health minister Nguyen Thanh Long.