R 261215 Z APR 73
FM AMEMBASSY SAIGON
TO SECSTATE WASHDC 816
C O N F I D E N T I A L SAIGON 7277
E. O. 11652: GDS
TAGS: PINT VS
SUBJECT: CORRUPTION INVESTIGATIONS BY VICE PRESIDENT' S OFFICE
1. IN A CONVERSATION APRIL 24 WITH EMBOFF, GENERAL NGUYEN
VAN HIEU OFFERED THE FOLLOWING COMMENTS ON CORRUPTION
INVESTIGATIONS HE HAD RECENTLY COMPLETED FOR THE VICE
PRESIDENT. HE SAID THAT SPECIAL INVESTIGATIONS HAD BEEN
COMPLETED ON THE EX - CHIEFS OF PHU BON AND PHU YEN PROVINCES,
TWO OF THE THREE PROVINCE CHIEFS DISMISSED BY PRES THIEU LAST
MAR 27 ON THE INSPECTORATE'S RECOMMENDATION (SEE SAIGON 5292).
2. INVESTIGATION OF COLONEL NGUYEN VAN NGHIEM. IN HIS
INVESTIGATION OF THE CORRUPTION CHARGES AGAINST THE EX- CHIEF
OF PHU BON PROVINCE, COL. NGUYEN VAN NGHIEM, GENERAL HIEU
SAID THAT SEVERAL IRREGULARITIES HAD BEEN DISCOVERED, THE
ONLY IMPORTANT ONE BEING COL. NGHIEM' S RETENTION OF ABOUT
HALF THE FUNDS SUPPLIED TO HIM FOR MONTAGNARD WELFARE.
HIEU ADDED, HOWEVER, THAT THE COLONEL' S INTENTIONS MAY HAVE
BEEN GOOD, SINCE NGHIEM APPARENTLY RETAINED THE FUNDS TO BUY
RICE FOR LATER DISTRIBUTION TO THE MONTAGNARDS. NGHIEM ALLEGED THAT SUPPLYING RICE RATHER THAN MONEY WAS PREFERABLE IN SUCH CASES, SINCE MONEY WAS APT TO GET SIPHONED OFF ALONG THE WAY. NGHIEM WAS ABLE TO SUBSTANTIATE HIS INTENTION WITH SOME EVIDENCE, SUCH AS THE FACT THAT HE HAD ALREADY BOUGHT SOME RICE WITH THE FUNDS. HIEU ADDED THAT SOME OF NGHIEM' S ACCUSERS MAY HAVE BEEN MOTIVATED BY MALICE AND THERE IS AN AS YET UNVERIFIED POSSIBILITY THAT PERSONS CONNECTED WITH THE COMMUNISTS STIRRED UP SOME OF THE CHARGES. IN ANY CASE, IT APPEARS THAT NGHIEM' S WRONGDOING WAS LESS THAN IT AT FIRST APPEARED. HIEU STRESSED, HOWEVER, THAT THE RETENTION
OF THE FUNDS WAS A HIGHLY IRREGULAR PRACTICE.
3. INVESTIGATION OF COLONEL NGUYEN VAN TO. CONCERNING
THE INVESTIGATION OF THE EX- CHIEF OF PHU YEN PROVINCE,
COL. NGUYEN VAN TO, HIEU SAID THAT THERE WAS EVEN LESS
EVIDENCE AGAINST HIM THAN IN THE CASE OF COL. NGHIEM. IT
HAD BEEN DISCOVERED THAT A PHU YEN DEPUTY, TRUONG VAN
NGUYEN, HAD USED HIS INFLUENCE WITH HIGH- UP SAIGON OFFICIALS
TO PERSUADE THE INSPECTORATE TO RECOMMEND TO' S DISMISSAL ON
CORRUPTION CHARGES, EVEN THOUGH THE CHARGES WERE LARGELY
GROUNDLESS. HIEU CHARACTERIZED DEPUTY NGUYEN AS A
REVOLUTIONARY DAI VIET, AND ADDED THAT THE DEPUTY' S
DISLIKE OF TO WAS BASED ON THE LATTER' S REFUSAL TO GIVE IN
TO RDV DEMANDS ABOUT THE PARTY' S POSITION IN THE PROVINCE.
(NOTE: NGUYEN IS THE BROTHER OF TRUONG TU ANH, DECEASED DAI
VIET LEADER.) ASKED WHY THE SAIGON ADMINISTRATION WOULD BE
INFLUENCED BY AN RDV REPRESENTATIVE DURING THE CURRENT
PERIOD OF BAD FEELING BETWEEN THAT PARTY AND THE ADMINISTRATION, HIEU WAS UNCLEAR IN HIS REPLY. HE MERELY SAID THAT IN SOME PROVINCES WHERE TRADITIONAL PARTIES ARE STRONG, SUCH AS PHU YEN WHERE THE DAI VIET PARTY WAS BORN, THE ADMINISTRATION' S DEMOCRACY PARTY IS NOT MAKING HEADWAY AND IS NOT TRYING HARD TO DO SO. (COMMENT: SINCE THE DEMOCRACY PARTY AND THE REVOLUTIONARY DAI VIET PARTY ARE NATIONALLY VERY MUCH AT ODDS, IT SEEMS UNLIKELY THAT THE ADMINISTRATION
WOULD MAKE AN EXCEPTION OF PHU YEN. ANOTHER EXPLANATION IS
THAT THE ADMINISTRATION ACCEPTED DEPUTY NGUYEN' S ARGUMENT
FOR ITS OWN REASONS, PERHAPS INCLUDING TO' S FAILURE TO
ESTABLISH A DEMOCRACY PARTY CHAPTER IN PHU YEN. (SEE
NHA TRANG A-17.)
4. THE ROLE OF THE INSPECTORATE AND THE VICE PRESIDENT' S
OFFICE. ASKED ABOUT THE ROLE OF THE VP' S OFFICE AS IT RELATES TO THE INSPECTORATE, HIEU SAID THAT THE FUNCTION OF THE VP' S OFFICE IS BASICALLY THAT OF AN INTERNAL HOUSECLEANING AGENCY WITHIN THE ADMINISTRATION. THE INSPECTORATE HAS MORE " LEGAL STATUS", WHICH IN A SENSE GIVES IT MORE AUTHORITY BUT ALSO IMPOSES ON IT A NUMBER OF REGULATIONS SLOWING DOWN ITS WORK. ALSO, THE INSPECTORATE CANNOT LOOK AT ADMINISTRATION FILES WITHOUT GETTING PERMISSION FIRST, WHEREAS THE VP' S OFFICE CAN SIMPLY " GO AND LOOK". BOTH THE INSPECTORATE AND THE VP' S OFFICE CAN ONLY MAKE RECOMMENDATIONS, BUT HIEU IMPLIED THAT THE VP' S RECOMMENDATIONS CARRY MORE WEIGHT.
5. HIEU' S ATTITUDE TOWARD HIS JOB. SPEAKING GENERALLY
ABOUT THE GOVERNMENT' S ANTI-CORRUPTION EFFORTS, HIEU REPEATED THE BASICALLY PESSIMISTIC LINE THAT HE HAS GIVEN TO EMBOFFS IN THE PAST (SEE SAIGON A-42). THE CORRUPTION PROBLEM IS
ENORMOUSLY DIFFICULT, HE SAID, AND IS COMPLICATED BY SUCH
FACTORS AS INFLATION, WHICH EATS INTO PENSIONS AND THEREFORE
INCREASES THE TEMPTATION FOR IMPROPER MONEY- MAKING ACTIVITIES. ON TOP OF THESE PROBLEMS IS THAT OF SORTING OUT REAL FROM FALSE CHARGES OF CORRUPTION, THE LATTER INSTIGATED BY THE
COMMUNISTS IN SOME BUT NOT ALL CASES. ALLEGING CORRUPTION IS
CONSIDERED AN EASY WAY TO DESTROY THE REPUTATION OF A PERSONAL OR POLITICAL ENEMY. HIEU SAID THAT "DRASTIC" MEASURES
ARE REQUIRED WHICH WOULD CONSTITUTE A VIRTUAL "REVOLUTION"
IN THE PUBLIC AND GOVERNMENTAL APPROACH TO THE CORRUPTION
PROBLEM.
BUNKER