The violations that occurred at the Southern Food Corporation (Vinafood 2) related to the prime public land at 33 Nguyen Du and 34 - 36 - 42 Chu Manh Trinh Street (Ben Nghe Ward, District 1) were discovered a long time ago, VietNamNet had many articles reflecting, up to now the investigation agency has initiated a case, prosecuted the accused to expand the investigation.

Selling public land cheaply to 'backyard' joint ventures

Recently, the Investigation Security Agency - Ho Chi Minh City Police Department has prosecuted Mr. Dinh Truong Chinh (49 years old, former Director of Viet Han Trading - Advertising - Construction - Real Estate Company Limited) and Mr. Huynh The Nang (64 years old, former General Director of Vinafood 2) related to violations that occurred at the above-mentioned prime land, causing particularly serious losses to the State. So what role does Mr. Dinh Truong Chinh play in this case?

Mr. Dinh Truong Chinh is known as a real estate tycoon. In 2006, Mr. Dinh Truong Chinh founded Viet Han Company, headquartered in Hanoi, and is the Chairman of the Board of Directors and General Director. Viet Han under Mr. Dinh Truong Chinh (from 2006 to October 2016) has implemented a series of real estate projects from North to South.

Before leaving Viet Han's leadership role, Mr. Dinh Truong Chinh joined and became Chairman of the Board of Directors of Ho Chi Minh City Housing Development and Trading Joint Stock Company (HDTC) when the company was equitized at the end of 2015. As of December 31, 2022, Mr. Chinh holds 26.45% of shares in HDTC - a company that is implementing many large real estate and social housing projects in Ho Chi Minh City.

Before the development of Mr. Dinh Truong Chinh being prosecuted in relation to the Vinafood 2 case, HDTC recently issued a statement confirming that Mr. Dinh Truong Chinh currently owns 30% of the charter capital and is one of the company's shareholders.

According to the Board of Directors, on October 27, the Board of Directors, the Supervisory Board, and the Executive Board of the company met to prepare for personnel, operating apparatus, and work implementation... and affirmed that Mr. Dinh Truong Chinh's prosecution will not affect any long-term development orientation and normal operations of the company in the near future.

Returning to the case of "transforming" prime land, according to the records, the land plots at 33 Nguyen Du and 34 - 36 - 42 Chu Manh Trinh Street (Ben Nghe Ward, District 1) have a total area of ​​6,274.5 square meters, are state assets, and have been assigned to Vinafood 2 to manage and use since 1975 until now. Vinafood 2 has used the land to arrange housing for its officers and employees.

The land was granted a land use right certificate by the Ho Chi Minh City People's Committee to Vinafood 2 in 2010.

However, since 2008, the prime land has been approved in principle for a high-end hotel project - office building and commercial center for lease. At that time, the value of land use rights and the value of construction works on the land, calculated by some State management agencies as the basis for paying land use rights transfer fees, was more than 633 billion VND.

In 2015, Vinafood 2 held a meeting of the board of members and issued a resolution agreeing on the policy of association with Viet Han Trading - Advertising - Construction - Real Estate Company Limited, with Mr. Dinh Truong Chinh as Director and legal representative.

The two parties agreed to establish a two-member LLC to implement the project, Viet Han Saigon Company, with a charter capital of 800 billion VND. Of which, Vinafood 2 contributed 20% by the entire value of assets on the land and a part of the value of land use rights; Viet Han Company contributed 80% in cash.

It is worth mentioning that at least two units proposed to participate in the project, but Vinafood did not organize a bidding but appointed the company of tycoon Dinh Truong Chinh.

In addition, in 2015, the land value was still calculated at more than 633 billion VND as in 2008.

In the resolution and many documents that Vinafood 2 reported and explained to the Ministry of Agriculture and Rural Development, Ho Chi Minh City People's Committee as well as other management agencies, Vinafood 2 will divest 20% of its capital contribution in the two-member LLC after the project is approved and this joint venture commits to buy back, not lower than the initial capital contribution price.

Thus, Vinafood 2 had a plan to divest capital before the cooperation agreement and this divestment took place quickly in December 2015. The Government Inspectorate pointed out that this was a trick to sell cheaply the prime land of the State to the private sector, by asking for policies and projects to exploit public land, then contributing capital, cooperating with external partners and the final act was to divest capital.

“Cicadas” cannot… shed their shells.

In addition to selling public land to private individuals at low prices as above, Vinafood 2 also caused other serious damages to the State.

Specifically, in the resolution of the Vinafood 2 board of members and the reports, it is stated that the compensation and relocation costs for 34 households living on the land were paid by the two-member LLC. However, in October 2015, Vinafood 2 issued a resolution with a strange exchange, when the compensation and relocation costs of 68 billion VND were taken from the assets of the Department of Public Asset Management - Ministry of Finance.

It is worth mentioning that after Vinafood 2 divested, the above golden land changed ownership... dizzily.

Specifically, a few months after Vinafood 2 withdrew from the joint venture, the above golden land was advertised as the Goldmark Premium hotel - office and luxury apartment complex project.

At this time, within Viet Han Company, a 9X businesswoman appeared, holding 99% of the shares. One month later, with the transfer of shares by the 9X businesswoman, Winter Real Estate JSC - VID, headquartered in Hanoi, owned 99% of the shares in Viet Han Saigon.

In early 2017, the "golden land" continued to change owners when two new companies appeared, holding 100% of the shares: BOB Investment Joint Stock Company and Saigon Demensions Joint Stock Company (both headquartered in the same building on Nguyen Hue, Ben Nghe Ward, District 1). Notably, the two new companies controlling the project both have the leadership role of the above 9X businesswoman.

Then, there was information that the golden land fell into the hands of a large real estate corporation.

From the complaints of the households, who were Vinafood 2 staff, the Government Inspectorate got involved and discovered many serious violations. After that, the case was transferred to the Ministry of Public Security and Ho Chi Minh City Police for investigation and handling.

In mid-2022, Chairman of the Ho Chi Minh City People's Committee Phan Van Mai signed a decision to reclaim 6,274.5 square meters of prime land and hand it over to the Land Fund Development Center for management. The reason for the reclamation was that this land could not be transferred or donated according to the provisions of the 2013 Land Law, but in reality it was still being transferred and donated.