News

Former Chairman of Saigon Real Estate Corporation Jailed for Five Years for Selling Prime Land

The court found that the violations committed by the defendant Nguyen Tin Trung, the former Chairman of the Members' Council of Saigon Real Estate Corporation, and his accomplices had caused particularly severe damage to property. As a result, the court sentenced the defendant to five years in prison.

Administrator

6 July, 2024

135

After a two-day trial and deliberation, on July 5, the People’s Court of Ho Chi Minh City handed down sentences to former leaders of Saigon Real Estate Corporation (Resco).

According to the judge, the defendants’ actions violated regulations on the management and use of state assets, resulting in significant losses. Their actions also damaged the reputation of government agencies and caused negative societal impact. Therefore, strict punishment is necessary to deter and educate.

However, the defendants cooperated during the investigation, provided clear testimonies, and actively worked to resolve the case. They also received numerous awards and certificates of merit for their work and voluntarily compensated for the damages. Additionally, Resco submitted a petition for leniency on behalf of all defendants. Taking these factors into consideration, the court applied Clause 1 and 2 of Article 54 of the Penal Code when determining the sentences.

The court announcing the sentences. Photo: TC

Furthermore, the Saigon Real Estate Development Company returned the entire amount of money lost from the land at National Highway 50 (Ward 6, District 8), resulting in almost complete restitution for the damages. This was considered a mitigating circumstance for the defendants.

Based on the above reasons, the court decided to sentence Nguyen Tin Trung, former Chairman of the Members’ Council of Resco, to 5 years and 6 months in prison. Nguyen Phuoc Ngoc, former General Director and Chairman of the Members’ Council of Resco, was sentenced to 4 years and 6 months in prison. Do Van Phuc and Tran Cong Duc, former members of the Members’ Council of Resco, were each sentenced to 3 years and 6 months in prison.

Vo Huu Hai and Hoang Hai Dang, former members of the Members’ Council of Resco, were each sentenced to 3 years of imprisonment but were given a suspended sentence with a 5-year probation period. Nguyen Thi Thuy Hang and Nguyen Dinh Phu, former Deputy General Directors of Resco, were each sentenced to 2 years in prison but were also given a suspended sentence with a 4-year probation period. All defendants were convicted of “Violation of regulations on the management and use of state assets, causing waste and loss.”

Defendant Nguyen Tin Trung, former Chairman of the Members’ Council of Resco. Photo: TC

According to the indictment, in 2010, the People’s Committee of Ho Chi Minh City approved the principle of assigning Resco to implement the site clearance and compensation project for the Rach U Cay project. Subsequently, the Committee also approved Resco’s proposal to convert the purpose of use of 15 land plots to offset the investment capital for the first phase of the Rach U Cay project, instead of having to contribute it to the city budget.

However, Resco did not follow this directive and proceeded to transfer some of the assigned land plots. Specifically, despite the People’s Committee’s decision to transfer the land plot at 299/18 Ly Thuong Kiet to a member unit of the corporation, on August 6, 2013, defendant Nguyen Phuoc Ngoc signed a contract to transfer the entire land plot to Real Estate Joint Stock Company No. 7 (which is not a member unit) for a price of over VND 38 billion. According to the valuation, the difference in value at the time of transfer caused a loss of over VND 2.1 billion to the state budget.

The defendants in court. Photo: YL

Regarding the land plot at 682 Hong Bang, the People’s Committee of Ho Chi Minh City had approved the sale to a member unit of the corporation. However, on January 28, 2016, defendant Nguyen Dinh Phu sold it to Nam Viet Real Estate Construction Joint Stock Company (which is not a member unit) for a price of over VND 22.2 billion, causing a loss of over VND 1.8 billion to the state budget.

As for the 4,606.5 sq. m land plot on National Highway 50 in District 8, the People’s Committee of Ho Chi Minh City had approved Resco’s proposal to use the land for the construction of apartments and commercial areas. However, on March 17, 2014, defendant Nguyen Ngoc Phuoc signed a contract to transfer the land plot to Saigon Construction and Trading One Member Limited Liability Company (in which Resco holds 99.78% of the capital) for a price of over VND 90 billion, causing a loss of over VND 41.4 billion to the state budget.

The indictment stated that the violations of the defendants caused a loss of over VND 45 billion to the state.

Thanh Phuong