General Director of Quoc Cuong Gia Lai was arrested

On July 19, Ms. Loan was temporarily detained by the Department of Police Investigation of Crimes of Corruption, Economy, and Smuggling (C03, Ministry of Public Security) for her behavior.Violating regulations on management and use of state assets causing loss and waste.

Currently, dozens of mobile police, investigators and the Procuracy are still executing a search warrant at Ms. Loan’s residence - a villa on Tran Quoc Thao Street, District 3; seizing many boxes of documents and papers to serve the investigation.

This move was made by C03 in the process of expanding the investigation of the case.Violating regulations on management and use of state assets causing loss and waste, occurred at Vietnam Rubber Industry Group, Dong Nai Rubber Company, Ba Ria Rubber Company and related units of the land project 39-39B Ben Van Don, District 4, covering an area of ​​over 6,200 m2.

Currently, the investigation agency has not announced Ms. Loan's specific violations. Regarding the case, on July 15, C03 temporarily detained Ms. Nguyen Thi Hong, former Vice Chairwoman of Ho Chi Minh City People's Committee, former Deputy Head of Steering Committee 09, for the crime ofAbuse of position and power while performing official duties.So far, at least 17 people have been prosecuted.

What did the Government Inspector conclude about the 39-39B Ben Van Don project?

In mid-2021, signs of legal violations at the 39-39B Ben Van Don project were pointed out by the Government Inspectorate in its conclusion on state management and law enforcement in planning, construction management, land, and environment for industrial parks, urban areas, and the conversion of prime public houses and land to other purposes in Ho Chi Minh City.

Accordingly, this land area of ​​more than 6,200 m2 is state-owned, managed by the Vietnam Rubber Industry Group, Ba Ria Rubber Company, and Dong Nai Rubber. At the end of December 2009, Phu Viet Tin Company Limited (headquartered at 39-39B Ben Van Don) was established with two members: Dong Nai Rubber Corporation (accounting for 72% of capital) and Ba Ria Rubber Company (accounting for 28%).

In March 2010, the Ho Chi Minh City People's Committee decided to reclaim the land and hand it over to Phu Viet Tin Company for investment and business according to the plan. However, by September 10, 2014, all capital contributions of Dong Nai Rubber Corporation and Ba Ria Rubber Company in Phu Viet Tin were sold to Quoc Cuong Gia Lai.

More than two months later, Ms. Nguyen Thi Nhu Loan signed a decision to transfer 40% of Quoc Cuong Gia Lai's capital contribution in Phu Viet Tin's charter capital to Thinh Vuong Real Estate JSC. At the same time, she transferred the remaining 54% of the charter capital to Thanh Pho Villa JSC.

In March 2017, Phu Viet Tin signed a merger contract with Phuc Nguyen Real Estate Investment and Development Company Limited. Thus, this public land has been turned into private property, has been transferred through many owners, and is now a complex of high-end apartments, commercial services and offices.

According to the Government Inspectorate, the Ho Chi Minh City People's Committee's decision to reclaim, allocate land and appoint Phu Viet Tin (later merged into Nova Phuc Nguyen Real Estate Investment and Development Company Limited) as the investor to implement the project without going through an auction is not in accordance with the 2003 Land Law and Circular 03/2009 of the Ministry of Planning and Investment. Phu Viet Tin Company did not establish an investment project on this land, which is a violation of the law...

The Government Inspectorate has requested the Ministry of Finance to inspect and, if any signs of criminal damage to state assets related to this project are discovered, transfer the case to the competent authority for handling according to regulations, to prevent loss of state assets...

Nearly two months before being prosecuted, on May 30, Ms. Loan and Quoc Cuong Gia Lai Joint Stock Company (QCG) affirmed that "they had received the transfer of all capital from the investor of the 39-39B Ben Van Don project for more than 464 billion VND in accordance with regulations".

According to QCG, in 2013, they negotiated and paid a deposit to Viet Tin Investment and Trading Joint Stock Company (represented by Mr. Dang Phuoc Dua) ​​to receive 100% of the capital at Phu Viet Tin - the investor of the project. The amount of money the company spent to receive 100% of this capital contribution was 464.2 billion VND, not 6 billion as some units posted information. At the same time, QCG affirmed that it had never worked or negotiated directly with Vietnam Rubber Group, Dong Nai Rubber Company and Ba Ria Rubber about this capital contribution transfer.

Ms. Nguyen Thi Nhu Loan's company also informed that they had studied the legal documents of Phu Viet Tin Company, the project at Ben Van Don land "complete and in accordance with regulations before signing the transfer contract". In early September 2014, this transaction was completed. This capital was then transferred by QCG to another unit.

Who are the people being prosecuted?

During the investigation, on May 23, C03 temporarily detained Mr. Le Quang Thung, former General Director and acting Chairman of the Board of Directors of Vietnam Rubber Industry Group; Huynh Trung Truc, former Deputy General Director of Vietnam Rubber Industry Group for the crime ofViolating regulations on management and use of state assets causing loss and waste.

On May 28, Mr. Doan Ngoc Phuong, Deputy Director of the Department of Planning and Land Resources Development, Chairman of the Council for Asset Valuation in Criminal Proceedings (Ministry of Natural Resources and Environment), was arrested for the crime ofBribery;Mr. Cao Dai Nghia, Deputy Head of the Land Price Department of the Department of Planning and Land Resources Development; Mr. Khuong Thanh Tung, Director of Thang Long Valuation and Appraisal Joint Stock Company, were arrested for the same crime.Taking advantage of position and power while performing official duties as prescribed.

The remaining defendants include Le Y Linh, former director of Viet Tin General Trading Company Limited; Dang Phuoc Dua, former chairman of the board of directors of Viet Tin Investment and Trading Joint Stock Company and a series of people at the Vietnam Rubber Industry Group, Dong Nai Rubber Company, Ba Ria Rubber Company...

Also arrested on July 15 with the former vice chairman of the Ho Chi Minh City People's Committee was Mr. Tran Ngoc Thuan, former member of the Board of Directors and General Director of the Vietnam Rubber Group (under investigation for the crime).Take bribes);Vo Sy Luc, former Chairman of the Board of Directors of Vietnam Rubber Group, was accusedViolating regulations on management and use of state assets causing loss and waste.

As an accomplice of Mr. Luc, defendant Tran Thoai, Member of the Board of Directors, Deputy General Director of Vietnam Rubber Group was released on bail.