
Japan has temporarily suspended official development aid to Vietnam over a bribery case, officials said Tuesday, dealing a possible blow to Tokyo's efforts to shore up its relationship with Hanoi.
Fresh yen-loans and and funding for an ongoing urban railway project have been halted after six Vietnamese railway officials were detained over allegations of corrupt payments, the foreign ministry said in a statement.
The scandal emerged in March when Japanese media reported that the national tax agency had flagged up 100 million yen ($100,000) -worth of payments that could not be properly accounted for.
Japan Transportation Consultants Inc. (JTC) which is involved in several official development aid programmes, is suspected of having paid the money to officials in Vietnam and Uzbekistan and Indonesia, the reports said.
Vietnamese investigators later arrested six people, including Tran Quoc Dong, a deputy general director of Vietnam Railways, reports said.
On Monday, Japan said development aid would be resumed following an investigation in Vietnam, and if measures are put in place to avoid a repeat, a foreign ministry official told AFP.
Japan has also suspended official aid to Uzbekistan over the same case, and is in discussions with Indonesia, the official said.
The suspension of aid from Vietnam's biggest donor country comes as Japan's ties with Vietnam are warming, with Tokyo offering support to Hanoi in its escalating standoff with China over disputed waters.
The relationship-building, spearheaded by Japanese Prime Minister Shinzo Abe, is aimed at forging a regional counterweight to China, which many local actors see as being increasingly aggressive in its various territorial claims.
GMT 09:43 2018 Tuesday ,23 January
Global unemployment down but working poverty rampantGMT 15:13 2018 Sunday ,21 January
All you need to know about Davos 2018GMT 22:33 2018 Saturday ,20 January
Calls for action over dirty money flowingGMT 04:42 2018 Saturday ,20 January
Storm caused 90 mn euros in damage: Dutch insurersGMT 07:06 2018 Friday ,19 January
China economy rebounds in 2017 with 6.9% growthGMT 11:35 2018 Thursday ,18 January
'Massive' infrastructure spending needed in AfricaGMT 14:29 2018 Wednesday ,17 January
GE takes one-off hit of $6.2 bn linked to insurance activitiesGMT 18:55 2018 Tuesday ,16 January
London stock market edges to new high

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©
Send your comments
Your comment as a visitor