Lieutenant General To An Xo: Phuc Son Group evaded 640 billion in taxes, Deputy General Director is only in 4th grade

This information was stated by Lieutenant General To An Xo, spokesman for the Ministry of Public Security, when providing information on the investigation results of the case that occurred at Phuc Son Group Joint Stock Company (Phuc Son Company), Thang Long Investment, Trade and Real Estate Joint Stock Company and related units, at the regular Government press conference on the afternoon of March 2.

Lieutenant General To An Xo said that public opinion and the press have mentioned this company for several years now, but it will not be until February 2024 that authorities will be able to clarify.

The spokesperson of the Ministry of Public Security said that according to initial information, Phuc Son Group Joint Stock Company has been operating since 2004, mainly in construction and installation in the district. This company started to grow since 2015 with many projects from North to South. To date, Phuc Son Company has 21 projects with a total investment of more than 40,000 billion VND.

According to Lieutenant General To An Xo, the investigation agency initially examined two projects in Vinh Phuc and found that Phuc Son Company left the books, did not declare the financial system, and evaded taxes, causing a loss to the state budget of over 640 billion VND.

"Many real estate projects that did not meet investment conditions were sold and collected money, then did not hand over land to investors, causing losses of tens of thousands of billions of dong to people," said Mr. To An Xo.

Regarding the responsibility of the management agency, the spokesperson of the Ministry of Public Security acknowledged that the "loophole" lies in the lack of control over financial reporting activities, allowing Phuc Son Company to operate openly despite not fully fulfilling its financial and tax obligations. In addition, there is the actual capacity of the enterprise when receiving the project.

"This is a small district-level enterprise that has risen to win many projects. It has moderate capacity but the level of project acceptance is something that powerful corporations can only dream of. The Deputy General Director of Phuc Son Group has just finished the 4th grade program. Overcoming poverty is good and should be encouraged, but in the process of getting rich, it must not infringe upon the legitimate interests of the State and the People," informed a representative of the Ministry of Public Security.

Mr. To An Xo added that the investigation agency is focusing on clarifying and expanding the investigation to ensure the right people are handled, the right crimes are committed, and assets are recovered for the State and the People.

On February 26, the Ministry of Public Security's Investigation Police Agency initiated a case of "Violating accounting regulations causing serious consequences" occurring at Phuc Son Group Joint Stock Company, Thang Long Investment, Trade and Real Estate Joint Stock Company and related units.

The Investigation Police Agency also issued decisions to prosecute and temporarily detain Nguyen Van Hau (commonly known as Hau "Phao", Chairman of the Board of Directors of Phuc Son Group Joint Stock Company); Nguyen Thi Hang (Deputy General Director of Phuc Son Group Joint Stock Company); Do Thi Mai (Chief Accountant of Phuc Son Group Joint Stock Company); Hoang Thi Tuyet Hanh (accountant, Phuc Son Group Joint Stock Company); Tran Huu Dinh (Director of Nam A Group Investment Joint Stock Company); Nguyen Hong Son (freelance worker).

The above defendants were prosecuted for acts of forgery, false declaration, leaving out of accounting books revenue, related assets... causing especially serious damage to the State.