The case of a 3.8 billion project with a loss of 1 billion: Prosecution of the Commune Chairman and many defendants

On September 30, Quang Ngai Provincial Police announced that they had just prosecuted the defendants Le Minh Viet, Chairman of the People's Committee of Duc Loi Commune, Head of the Management Board of the National Target Program for New Rural Construction in Duc Loi Commune; Phan Ngoc Han, Director of Thien An Construction Consulting One Member Co., Ltd.; Ngo Duc Vien, former Deputy Director of Cong Thanh Consulting and Construction Co., Ltd. for violating regulations on investment in construction works causing serious consequences, occurring at the coastal commune road project of Trung Duong service area - Duc Loi Border Guard Station.

At the same time, the police agency also prosecuted the defendant Do Nhuan, an expert of the Office of the People's Council and People's Committee of Mo Duc district (formerly an expert of the Economic-Infrastructure Department of Mo Duc district) for the crime of lack of responsibility causing serious consequences.

Previously, in April 2024, the Quang Ngai Provincial Inspectorate announced the conclusion on the acceptance and settlement of the coastal commune road project from Trung Duong service area to Duc Loi Border Guard Station (Duc Loi commune).

The inspection conclusion pointed out a series of violations from the stages of budget preparation, construction, acceptance, final settlement,... of this project, causing the budget to be misappropriated and lose about 1 billion VND.

The above project is over 1.7km long with a total investment of 3.8 billion VND, invested by the Management Board of the National Target Program of Duc Loi commune.

The project was surveyed by Thien An Construction Consulting Company Limited, and the technical economic report was prepared; and the Mo Duc District Infrastructure Economic Department appraised the project. However, these two units made incorrect estimates and appraised and approved the wrong amount of roadbed earth filling, causing the estimate to increase by more than VND929 million.

Cong Thanh Consulting and Construction Company Limited won the construction contract and intentionally violated the law to appropriate more than 985 million VND with dishonest bidding documents. This company also intentionally accepted fake construction volume, not calculating the actual construction volume,...

Considering the nature and level of violations with signs of crime, the Provincial Inspectorate has transferred the case file to the Provincial Police to consider initiating criminal proceedings.