Former Chairman of Hanoi Housing Management Company receives suspended sentence

On June 12, the Hanoi People's Court held the first instance trial of defendant Nguyen Duc Son - former Chairman of the Board of Members and General Director of Hanoi Housing Development and Management One Member Co., Ltd. (referred to as the Company) and officers and leaders of the Urban Area Service Management and Exploitation Enterprise (referred to as the Enterprise) under the Company.

The defendants at trial

Accordingly, the court of first instance sentenced defendant Nguyen Duc Son to 36 months in prison but suspended the sentence for the crime of "Lack of responsibility causing serious consequences".

Also sentenced for the crime of “Abusing position and power while performing official duties”, defendant Luong Van Huu (former Director of the Enterprise) received 10 years and 6 months in prison; Nguyen Toan Thang (former Deputy Director of the Enterprise) was sentenced to 5 years and 6 months in prison and Quach Huu Canh (former Deputy Head of the Operation Management Department - Enterprise) received 30 months in prison.

During the trial, the court of first instance clarified that Hanoi Housing Management Company is a 100% state-owned enterprise, assigned by the Hanoi People's Committee to manage housing funds in the city, including service business locations. During the management process, Hanoi Housing Management Company assigned the Urban Area Service Management and Exploitation Enterprise to directly manage the above-mentioned service business locations.

From 2009 to 2014, Luong Van Huu, Nguyen Toan Thang and Quach Huu Canh took advantage of their assigned authority to arbitrarily allow 24 companies and units to use 24 service business locations against regulations, causing a loss to the State of nearly 20 billion VND.

In particular, Luong Van Huu was determined to have arbitrarily allowed 19 companies and units to use 19 service business locations in violation of regulations, causing a loss of more than 18 billion VND. The remaining amount was due to Nguyen Toan Thang and Quach Huu Canh, accomplices of Luong Van Huu, arbitrarily allowing companies and units to use 5 service business locations in violation of regulations.

Regarding the act of irresponsibility causing serious consequences, the prosecution agency determined that from 2010 to 2015, Nguyen Duc Son held the position of Chairman of the Board of Directors and General Director of Hanoi Housing Management Company. This defendant was responsible for directing and operating all activities of the enterprise, directly signing economic contracts and managing the assigned housing fund.

On April 10, 2010, Nguyen Duc Son signed Decision No. 01/2010 on assigning the Urban Area Service Management and Exploitation Enterprise to directly manage and establish contracts for leasing service business areas on the 1st and 2nd floors of resettlement apartment buildings.

During the leadership and management process, Son was irresponsible, lax in managing public assets, did not inspect, did not take measures to handle and prevent violations by Luong Van Huu and his accomplices, causing damage to the State of more than 19 billion VND.

The Hanoi Court affirmed that the defendants’ actions violated the State’s economic management order, causing very serious consequences and loss of public confidence. Therefore, it is necessary to apply appropriate penalties to the defendants.