Former Dong Nai Chairman Accused in Unlawful Land Allocation Causing VND 117 Billion in Losses
On November 11, investigators from Vietnam’s Ministry of Public Security recommended prosecuting former Dong Nai provincial chairman Đinh Quốc Thái and others over the appointment of a project investor without competitive bidding and the unlawful allocation of land to Free Land. Investigators said the land management violations caused VND 117 billion in losses, with additional losses from tax evasion.
On November 11, investigators from Vietnam’s Ministry of Public Security issued their findings and recommended prosecuting former Dong Nai Provincial People’s Committee chairman Đinh Quốc Thái for violating regulations on the management and use of state assets, causing losses. Investigators accused several former provincial officials of unlawful conduct in selecting an investor and allocating land to a company. The land management violations caused VND 117 billion in losses.
Former Dong Nai provincial chairman Đinh Quốc Thái appeared in court in 2022.（VietVance）
According to the investigation findings, business executive Vũ Minh Lý learned in 2012 of a local plan to allow the Ring Road 3 project investor to develop 125 hectares of land to raise funds for land clearance compensation. She subsequently helped form the Cửu Long-Hamico consortium and applied for the right to develop the site. In March 2014, Dong Nai provincial authorities approved the consortium’s implementation of the project. Investigators concluded that provincial leaders violated regulations by appointing the consortium without selecting an investor through competitive bidding.
The project’s investor later changed, with Free Land ultimately taking the role. From 2018 to 2021, the company was allocated a total of 688,000 square meters of land, about half of it residential. Investigators also accused Vũ Minh Lý of bribing several Dong Nai officials during the investor approval and land allocation process, and of driving down the land price and calculating it in a way that favored the company, causing the land management losses described above.
Investigators separately accused Vũ Minh Lý of tax evasion that caused VND 14.2 billion in losses; total losses in the case were approximately VND 131 billion. During the investigation, she and associated parties paid back a total of VND 317 billion, including VND 287 billion paid by Refico, which now owns all shares in Free Land. The investigation findings said the recovered and temporarily seized funds were sufficient to cover all losses in the case. Đinh Quốc Thái acknowledged that appointing the investor without competitive bidding violated regulations, but denied receiving money or intervening with subordinates to help Vũ Minh Lý.
Source: VietVance
