Prosecuted 3 individuals at Vinafood 2 for selling prime land to private individuals at low prices

Currently, the Ministry of Public Security's Investigation Police Agency is expanding the investigation into the case of "Violating regulations on management and use of State assets causing loss and waste" occurring at the Southern Food Corporation (Vinafood 2) and a number of related units.

The Ministry of Public Security has prosecuted and temporarily detained three people, including Truong Thanh Phong (former General Director), Tran Van Ven (former Chairman of the Board of Directors) and Tran Bay (former Head of the Strategic Planning Department of Vinafood 2) for the above crime.

The three individuals prosecuted (from left to right) include: Truong Thanh Phong, Tran Van Ven and Tran Bay. Photo: Ministry of Public Security

The investigation agency determined that, during their time holding positions at Vinafood 2, these three individuals "sold cheaply" the prime land at 132 Ben Van Don, Ward 6, District 4 to private individuals, causing serious damage to the State.

Accordingly, Vinafood 2 is an enterprise under the Ministry of Agriculture and Rural Development , assigned to manage many houses and lands under State management; including the prime land at 132 Ben Van Don.

Vinafood 2 has applied for approval and established a project called the Ceasar Plaza Commercial Center - Office and Apartment Project.

Project perspective at 132 Ben Van Don, District 4. Photo: TL

During that process, Vinafood 2 appointed Nguyen Kim Investment and Development Joint Stock Company (ie Nguyen Kim Company) as a joint venture partner to implement the Ceasar Plaza project and a number of other prime land projects. In 2007, Vinh Hoi Investment and Development Joint Stock Company (under Vinafood 2) was established to implement the project.

Vinafood 2 contributes capital to joint ventures and investment cooperation using the advantage value of State land lease rights of the above-mentioned land plot at 132 Ben Van Don.

However, the project continued to drag on. At the end of 2013, the People's Committee of District 4 issued a document requesting the investor to commit to starting construction in 2015 and completing it in 2017; if the project did not meet the schedule, the project would be revoked and cancelled.

As of mid-2014, Vinafood 2 held 1.5 million shares, equivalent to 8.8% of ownership in Vinh Hoi Company, which is contributed capital by land lease rights. The two largest shareholders are Nguyen Kim Company with 44.24%, An Giang Import-Export Joint Stock Company with 26.39% and two other shareholders.

By November 16, 2015, Vinafood had auctioned 1.5 million shares in Vinh Hoi Development Investment Joint Stock Company. 1 enterprise and 2 individuals bought the shares at 30,000 VND/share, equal to the starting price.

Vinafood 2 has earned 45 billion VND, a difference of 30 billion VND compared to the total initial capital contribution value determined to be 15 billion VND.

Thus, Vinafood 2 has requested to change the land use purpose of the land assigned to it by the State to a Trade Center - Office and Apartment project. However, Vinafood 2 did not implement the project itself but contributed capital with outside partners.

After that, Vinafood 2 divested by selling shares at low prices and the prime land easily fell into private hands.

Just a short time later, the project was "sold immediately" to a number of other partners, including Phat Dat Real Estate Development Joint Stock Company.

The amount of money for converting land use purposes to be paid to the State budget related to this golden land is determined to be only nearly 112.5 billion VND.

It is known that the Ministry of Public Security is currently expanding its investigation into many other prime lands that Vinafood 2 has "sold cheaply" to private individuals using the above sophisticated methods.

Source