Does the 530 billion VND project increase in value multiple times after 4 years?
The Agency of Investigation (C01) – Ministry of Public Security has recently completed the supplementary investigation conclusion on the case involving Mr. Tran Qui Thanh (71 years old, Director of Tan Hiep Phat Trading and Service Company Limited) and his two daughters, Tran Uyen Phuong (44 years old, Deputy Director of Tan Hiep Phat Company) and Tran Ngoc Bich (40 years old), for the offense of “Abusing trust to misappropriate property.”
In this case, Mr. Tran Qui Thanh and his two daughters are determined to have committed 4 acts of misappropriation of property. Among them are two real estate projects in Dong Nai province. The victim in this case is Ms. Dang Thi Kim Oanh, Chairwoman of Kim Oanh Group’s Board of Directors and Thuan Loi Investment and Development Joint Stock Company.
These are the residential and service area projects in An Phuoc commune (Minh Thanh project) and residential area project in Phuoc An commune (Nhon Thanh project).
After the case was initiated and charges were filed against Mr. Thanh and his two daughters, in April 2023, the Ministry of Public Security also issued a request to the People’s Committee of Dong Nai province to maintain the current status, legal procedures, and stop registering changes for the two projects until further notice.
According to the research conducted by reporters, the Minh Thanh project has a scale of 56.7 hectares, with Minh Thanh Real Estate Joint Stock Company being the investor.
The Minh Thanh project borders the Ho Chi Minh City – Long Thanh – Dau Giay expressway to the north, Tat Go Da River and Phuoc Thien commune, Nhon Trach district to the south, agricultural land to the east, and Nuoc Trong River and Tat Go Da River to the west.
Minh Thanh project in Dong Nai. (Photo: Le Hoang) |
According to the detailed construction planning at a 1/500 scale approved by the People’s Committee of Dong Nai province in 2015, this project has 23.5 hectares of residential land, 5.5 hectares of urban service construction land, 9 hectares of greenery and water surface, 18 hectares of transportation land, and 0.5 hectares of other land.
Within the 23.5 hectares of residential land in the Minh Thanh project, according to the plan, there will be 1.5 hectares of land for apartment buildings, 4.4 hectares of land for row houses, 11.5 hectares of land for garden townhouses, and 6 hectares for villas. The total number of residential units in this project is 1,181, including 350 units of social housing.
In 2017, Kim Oanh Group acquired the project for 540 billion VND. By 2020, there were reports that some investors wanted to buy the project for over 1,000 billion VND, but Ms. Oanh declined to sell.
At this time, Ms. Oanh wants to fully repay the 350 billion VND loan to regain ownership of the project and continue its development. This loan, however, was falsely transformed into a share transfer contract for the two daughters and Mr. Tran Qui Thanh’s family company.
According to the Asset Valuation Council in criminal proceedings in Dong Nai province, as of November 2019, the value of the Minh Thanh project was 596.5 billion VND. By August 2020, the project’s value was 533 billion VND.
As for the Nhon Thanh project, it is a project by Nhon Thanh Investment and Construction Joint Stock Company. In 2017, through Thuan Loi Investment and Development Joint Stock Company, Ms. Oanh purchased the project for 72.2 billion VND.
According to the research, the Nhon Thanh project has a total land area of 36.8 hectares and an estimated population of about 8,000 people.
In October 2020, the People’s Committee of Dong Nai province approved the adjustment of the detailed construction planning at a 1/500 scale for this project.
In terms of land use structure, residential land accounts for 45-50% of the project, up to 18.4 hectares; public and urban service land accounts for about 3.6 hectares; the rest is transportation land and greenery.
Individual houses in this project are not allowed to exceed 5 floors, while apartment buildings can range from 5 to 9 floors, public facilities should not be higher than 3 floors, and commercial service buildings should not be higher than 5 floors. One-floor buildings are allowed in greenery areas.
The project investor is responsible for allocating 20% of the total residential land area for social housing construction.
In November 2019, Ms. Oanh transferred 100% of the shares in Nhon Thanh Company to Ms. Tran Ngoc Bich to borrow 150 billion VND.
According to the Asset Valuation Council in criminal proceedings in Dong Nai province, as of November 2019, the value of the Nhon Thanh project was 577.6 billion VND. By August 2020, the project’s value was 567 billion VND.
According to the additional investigation conclusion dated January 29, 2024, the value of Ms. Dang Thi Kim Oanh’s Nhon Thanh project as of August 26, 2020, was over 603 billion VND.
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According to the investigation conclusion, when the borrower completed the procedures for transferring assets to Tran Uyen Phuong and Tran Ngoc Bich under the instruction of Mr. Tran Qui Thanh, the assets were quickly transferred to them to exercise control and make decisions… The investigative agency clarified the methods used by Mr. Tran Qui Thanh and his daughters. When the borrower fulfilled their obligation to repay the principal and interest according to the agreement, Mr. Thanh and his daughters used fraudulent tactics such as creating unreasonable excuses to refuse payment, not returning the assets, claiming that the asset owner violated the contract terms, resulting in the loss of the right to repurchase… or creating other reasons such as forcing the asset owner to pay additional fees, not allowing installment payments but demanding the full repayment of the principal amount… The purpose was to prevent the asset owner from being able to fulfill the payment, so Mr. Thanh and his daughters deliberately refused to pay and misappropriated the assets. |
Phuong Anh
