Recently, Chairman of the People’s Committee of Quang Ngai province, Dang Van Minh, directed the Departments of Planning and Investment; Construction; Resources and Environment; Finance; and Internal Affairs and the Provincial Tax Department to provide information and documents as requested by the Economic Crime Investigation Police Department under the Ministry of Public Security (Economic Police Department).
Phuc Son Group won the construction contract for the South Bank road project of Tra Khuc river.
Earlier, on February 25, 2024, the Economic Police Department sent a document to the People’s Committee of Quang Ngai province, informing them of an ongoing investigation into violations of laws related to taxation, accounting, investment, and the implementation of projects and works at Phuc Son Corporation (Phuc Son Group) and related units.
To facilitate the investigation, the Economic Police Department requested the People’s Committee of Quang Ngai province to provide and direct the relevant agencies, including the Department of Planning and Investment; Construction; Resources and Environment; and the Tax Department, to provide all information, records, and documents related to the approval of investment policies, selection of investors, implementation of investments, construction, tax declaration, inspections, and examinations of projects and works carried out by Phuc Son Group and its subsidiaries in Quang Ngai province.
According to our research, in 2012, Phuc Son Group won the construction contract for the South Bank road project of Tra Khuc river, with an investment capital of nearly VND 1,000 billion. The Department of Transport of Quang Ngai province was assigned by the province to be the investor for this project.
The total length of the project is over 8.7 km, with a roadbed width of 36 m and a road surface width of 22 m made of asphalt concrete. This is a completely new transportation project.
The project starts at QL1 at Km1.057 and ends at the junction leading to Co Luy bridge. The road is designed according to the standard of urban primary roads running along the south bank of Tra Khuc river, passing through communes and wards of Quang Ngai city.
Most recently, in 2022, Phuc Son Group was approved by the People’s Committee of Quang Ngai province to invest in the Bau Giang urban area project.
The project will be implemented within 6 years from the date of investor selection. The project’s operating period is 49 years, starting from the date of the decision to allocate land or lease land. This is an urban area project where the investor was selected through bidding, with the aim of building a new, modern, and synchronized urban area with technical infrastructure and social infrastructure closely linked to the surrounding landscape, in accordance with the planning orientation of Quang Ngai city and Tu Nghia district.
The project covers an area of 495,932 m2, including 294 commercial houses located on the main road with an area of 46,089 m2, 274 social houses with an area of 19,292 m2, 795 land lots… The total investment capital of the project amounts to VND 3,318 billion.
Although it has just been licensed, Nguyen Van Hau – Chairman of Phuc Son Group’s Board of Directors – has been preparing for this project for a long time. In 2018, the 8X tycoon established Bao Giang Urban Development Co., Ltd. in Quang Ngai. The initial charter capital of the company was only VND 20 billion.
In 2019, Nguyen Van Hau became Chairman cum CEO of the company and increased the equity capital to VND 250 billion. In both 2019 and 2020, Bau Giang Company did not generate any revenue and reported losses of VND 494 million and VND 1 billion respectively.
On February 26, 2024, the Criminal Investigation Agency under the Ministry of Public Security initiated a case of “Serious violations of accounting regulations” at Phuc Son Corporation Joint Stock Company, Thang Long Investment and Commercial Real Estate Joint Stock Company, and related units.
The Criminal Investigation Agency also issued arrest warrants and temporary detention orders for Nguyen Van Hau – Chairman of the Board of Directors of Phuc Son Corporation Joint Stock Company; Nguyen Thi Hang (Deputy General Director of Phuc Son Corporation Joint Stock Company); Do Thi Mai (Chief Accountant of Phuc Son Corporation Joint Stock Company); Hoang Thi Tuyet Hanh (Accountant at Phuc Son Corporation Joint Stock Company); Tran Huu Dinh (Director of Nam A Group Investment Joint Stock Company); Nguyen Hong Son (freelancer).
The suspects have been charged with falsifying, fabricating, and concealing accounting-related revenue, assets… causing extremely serious damage to the State.
