Unveiling the ‘Red and Blue Army’ Scheme: A Exposé on the Thuan An Corporation’s Billion-Dollar Project

Bid-rigging and Creating a “Straw Man” Scheme

The Investigation Police Agency of the Ministry of Public Security has completed the investigation and transferred the file to the Supreme People’s Procuracy, proposing the prosecution of 30 defendants in the case of serious violations at Thuân An Corporation and several related units. The charges include “Violation of regulations on bidding, causing serious consequences”; “Taking advantage of positions and powers to influence others for personal gain” and “Abuse of position and power while on duty”.

According to the investigation conclusion, the personal relationship between Nguyen Duy Hung, Chairman of Thuân An Corporation, and Nguyen Van Huy from Tuyen Quang Province, marked the beginning of a series of legal violations.

When Huy learned that the Tuyen Quang Project Management Board was about to invite bids for Package No. 26 (phase 2 of the Tuyen Quang – Phu Tho Expressway Project), he proactively proposed to Hung to include Thuân An in the bidding process, on the condition that local construction teams would be arranged. Thuân An would be responsible for supplying materials, technology, and quality management.

After agreeing, Hung met with Tran Viet Cuong, Deputy Director of the Tuyen Quang Project Management Board, to propose an increase in the estimated cost, arguing that the original cost was too low. However, this proposal was rejected. Undeterred, Cuong proceeded to introduce two companies, Hiep Phu and Thanh Hung, to form a joint venture with Thuân An. When Thanh Hung withdrew, Licogi 14 was brought in as a replacement to complete the consortium’s capabilities.

Following a meeting with the involved parties, Mr. Cuong instructed his subordinates to copy and send the entire detailed estimate of the package (a confidential document) to Thuân An and the joint venture companies, contrary to bidding information confidentiality regulations. Based on this estimate, Thuân An proceeded to analyze and prepare their bid as the main contractor.

To legitimize the process, a “straw man” scheme was activated. Thuân An, Hiep Phu, and Licogi 14 played the role of the “real bidders,” while two “straw men,” Tu Lap Company and Company 68, were included to meet the minimum requirement of three bidders. The bids of these “straw men” were prepared by Thuân An’s technical staff, including explanations, financial plans, personnel arrangements, and estimates.

The entire coordination process, division of tasks, and preparation of documents took place in internal Zalo groups such as “Planning – Technical” and “Tuyen Quang – Phu Tho Expressway.” An intermediary, Nguyen Ngoc Thai, Deputy Director of Viet Tien Company (managed by Huy), acted as “Thuân An’s representative,” directly managing both the joint venture and the “nominal” companies submitting bids.

In September 2023, the Tuyen Quang Project Management Board issued an invitation to bid for Package No. 26, for the construction of the Km0+00 – Km11+300 section, with the goal of expanding it to four lanes. The total investment for the entire line was increased to 3,753 billion VND, with most of the funds coming from the central budget.

On September 15, 2023, Thuân An, together with Hiep Phu and Licogi 14, signed a joint venture agreement, dividing the workload as follows: Thuân An 51.34%, Hiep Phu 30.27%, and Licogi 14 18.39%. The agreed bid price was 90,497,413,075 VND.

Notably, just four days after submitting their bid, the Tuyen Quang Project Management Board invited the joint venture for negotiations and approved their bid the very next day (October 6, 2023), at the exact price agreed upon beforehand. On October 9, 2023, the two parties officially signed the contract, materializing the entire orchestrated scheme.

The Trail of “Gratitude” Payments and Profit Sharing

The investigation results show that after winning the bid and receiving advance payments, Thuân An Corporation proceeded to distribute “commissions” to related parties through “gratitude” payments and underground profit-sharing.

Nguyen Van Huy received 2 billion VND from Thuân An through Viet Tien Company. This amount was referred to as “local support,” but in reality, it was a kickback for facilitating access to the package.

Tran Viet Cuong, Deputy Director of the Project Management Board, received 500 million VND after “giving the green light,” introducing joint venture partners, and providing confidential information. Most of these payments were legitimized as technical consulting, survey, or advance payment fees outside the books, with a portion paid in cash.

Thuân An’s Chairman, Nguyen Duy Hung, admitted to paying a total of 10 billion VND to be designated as the main contractor. Of this, 7 billion VND was an initial “gratitude” payment, and the remaining 3 billion VND was distributed after winning the bid as a share of the project profits.

From the complete investigation data, it can be concluded that this was an organized scheme, not only to win the bid but also to ensure benefits for each role: The main contractor (Thuân An) maintained control over execution and construction; The local partner (Huy – Viet Tien) handled brokerage and logistics; State officials (Cuong) provided confidential information and directed the joint venture. The “straw men” served as a facade to legalize the process.