Vietnam's police will conduct a thorough investigation into an alleged bribery of local public officials by Tenma Vietnam, a Vietnam unit of Tokyo-based company Tenma, according to Major General To An Xo, chief of the Ministry of Public Security (MPS) Office.

Major General To An Xo, chief of the Ministry of Public Security Office pledged a thorough investigation into the alleged bribery. Photo: VGP.

Leaders of the MPS has instructed police in Bac Ninh province, where Tenma Vietnam is headquartered, to verify the allegation, Xo said at a monthly government press briefing on June 2.

So far, police have worked with Tenma Vietnam to gather evidence while the MPS has been in contact with Japanese authorities to ask for more information, Xo added.

Xo said that the local authorities is determined to get to the bottom of the case and prevent potential tax losses, as instructed by Prime Minister Nguyen Xuan Phuc.

As the allegation involved officials at the departments of taxation and customs of Bac Ninh province, Vice Minister of Finance Vu Thi Mai said the agency has set up an inspection team to carry out internal investigation at these two relevant departments.

So far, 11 taxation and customs officials have been temporarily suspended from work in the process of the investigation, Mai added.

Mai stated anyone who is found to have accepted bribery would be subject to strict punishment in accordance with law, aiming to ensure a transparent business environment and prevention of tax losses.

Previously, several Japanese media outlets, including Asahi, Kyodo, Nikkei, have reported that the plastic product maker Tenma admitted to the Tokyo District Prosecutor of bribing Vietnamese tax authorities with 25 million yen (US$232,000).

The action is considered a violation of Japan’s Unfair Competition Prevention Act, as it was aimed at ensuring that  local authorities would remit Tenma Vietnam’s value-added tax (VAT) arrears worth VND400 billion (US$17.17 million) from imported raw materials.