Former National Assembly delegate Thu Nga sentenced to life in prison, ordered to pay 55 billion VND in compensation

According to the verdict this afternoon, Housing Group must compensate more than 187 billion VND, Ms. Nga must return nearly 55 billion VND to over 500 apartment buyers.

On the afternoon of October 16, after two weeks of trial and lengthy deliberation, the Hanoi People's Court sentenced defendant Chau Thi Thu Nga (former National Assembly delegate, former Chairman of the Board of Directors of Housing Group) to life in prison for the crime of Fraudulent appropriation of property.

The verdict stated that this was an "extremely serious" case. The prosecution of Ms. Nga and nine subordinates for fraud and appropriation of property by the People's Procuracy was well-founded and in accordance with the law. The B5 Cau Dien project had not been approved or licensed, but the defendants still directed the capital mobilization. The amount of nearly 350 billion VND is currently unrecoverable.

Ms. Nga played the role of mastermind and main beneficiary of the embezzled amount of nearly 350 billion VND, so she had to compensate more than 500 customers.

The court determined that Ms. Nga's 9 subordinates at Housing Group were salaried employees who acted under instructions, so they were not subject to additional monetary penalties. The sentences for the four former deputy general directors of Housing Group include: Nguyen Truong Son was sentenced to 6 years, Le Hong Cuong to 4 years, Nguyen Vu Hung to 30 months, and Phan Thanh Tuyen to 24 months.

Former director of Housing Group's real estate trading floor, Nguyen Thi Tinh was sentenced to 7 years in prison, Luu Thi Thuy to 36 months. The remaining defendants include Pham Thi Thu Hanh to 36 months, Dinh Phuc Tieu (former chief accountant) to 36 months suspended sentence and Doan Thanh Thuy (former acting chief accountant) to 24 months, for the same crime as her former boss.

10 defendants stand to listen to the verdict. Photo: Xuan Hoa.

Investigation into violations of a series of agencies in Hanoi

The verdict determined that the amount of 157 billion VND had no documents that Ms. Nga claimed to have used as "bribes". The Ministry of Public Security's Investigation Police Agency responded that they had taken statements from those accused of receiving the money but they all denied it. When confronted, both sides maintained their statements.

Due to the expiration of the investigation period, on June 9, 2017, the Ministry of Public Security's Investigation Police Agency issued Decision No. 10/C46-P11 on separating the acts and documents related to the spending of more than VND 157 billion to continue the investigation.

The People's Court also continued to recommend that the Investigation Police Agency clarify this content to ensure the rights of customers who contributed capital to the B5 Cau Dien project.

The prosecution agency said that some individuals from departments, branches and sectors under the Hanoi People's Committee, Tu Liem District People's Committee, and Cau Dien Town People's Committee did not inspect and supervise the project, allowing Housing Group Company to construct bored piles without a construction permit...

During the investigation, Department 3 of the Supreme People's Procuracy sent many documents requesting the Ministry of Public Security's Investigation Police Agency (C46) to clarify this content, but there have been no results. This will be one of the main issues that need to be clarified when investigating the above-mentioned spending of more than 157 billion VND.

Who should compensate more than 500 customers?

The court determined that the actions of the 10 defendants had appropriated a total of more than VND377 billion from 726 customers through 752 capital contribution contracts. Of this amount, defendant Nga returned more than VND28 billion to 43 customers.

Ms. Nga was escorted into the room to hear the verdict. Photo: Pham Du.

475 out of 726 customers have filed a complaint to the Ministry of Public Security's Investigation Police Agency and requested to get back the money they paid to Housing Group. Some other customers, although not filing a complaint, during the investigation process also gave statements, presented documents and receipts of money payment which were clarified by the investigation police agency and they requested to get back the money that was misappropriated.

According to the investigation and comparison results at the first instance trial, 501 customers have not yet received the appropriated money, totaling more than 242 billion VND.

At the trial, Housing Group representative confirmed the company's responsibility for the expenses that Ms. Nga spent with the company's documents. Ms. Nga must be responsible for the expenses without documents.

On the other hand, the victims also requested that Housing Group be held responsible because when they paid their capital contributions, there were receipts stamped by the company. The panel of judges said that according to the provisions of Clause 1, Article 42 of the Penal Code and Articles 604, 605, 606, 608 of the Civil Code, Ms. Nga and Housing Group must jointly compensate 501 victims for the amount of money they misappropriated. Of which, Housing Group compensated more than 187 billion VND, and defendant Nga nearly 55 billion VND.

In the verdict, the court ordered a number of companies and individuals who received money from Ms. Nga and Housing Group to return it to the investigation agency's temporary account to serve the execution of the judgment. The court ordered to continue to seize the assets of Housing Group and Ms. Nga and her husband to ensure execution of the judgment.

Graphics: Tien Thanh

According to the verdict, HAIC, a one-member limited liability company, was assigned and leased land by the state to serve production and business activities of Mr. Nguyen Van Tuan (Chairman of the Board of Directors and General Director). Among these, there is land lot B5 (an area of ​​nearly 29,000 m2, in Cau Dien town), located in the resettlement construction project in lots CT1 and HH2.

On August 1, 2008, Ms. Nga and Mr. Tuan signed an investment cooperation contract to implement the investment project to build an apartment complex and garden villas on land lot B5, with a total area of ​​over 22,000 m2. However, two years later (at the end of 2010), Hanoi only agreed to approve the joint venture between the two companies on land lot B5 and guided the planning adjustment of the land lot but did not grant a construction permit.

The court determined that until now, Housing Group has not been granted a construction permit for the B5 Cau Dien Project, but since 2009, Ms. Nga has still directed her subordinates to advertise and "sell apartments on paper".

Four former deputy general directors of Housing Group, two floor directors, and three former chief accountants and acting chief accountants helped Ms. Nga sign contracts and raise capital. These nine people knew about the legal status of the project but still carried out the act.

Mr. Nguyen Van Tuan received 18 years in prison in another case, also related to collecting money from home buyers at the B5 Cau Dien project.

During the opening days of the trial, Ms. Nga often answered in a roundabout way, sometimes taking all the responsibility on herself, sometimes "blaming" her subordinates. She continuously asked for permission for the Cau Dien B5 project to continue construction. When giving her final words, Ms. Nga complained that she had been "injustice-ridden" and that the Hanoi authorities had made things difficult for her when implementing the B5 Project.

Ms. Nga and her defense attorneys all stated that they had no intention of defrauding clients. Ms. Nga's 9 subordinates also stated that they did not defraud anyone and did not benefit from anything other than their salaries.

Presenting in court, many victims also expressed their wish that the project be implemented so that they could receive their houses. If it is not possible, they will receive compensation. However, the victims did not agree with the prosecutor's view that Ms. Nga was the one who compensated. They said that they signed a contract with the legal entity Housing Group, not with Ms. Nga as an individual. Therefore, if compensation is paid, Housing Group must be responsible.

During a trial, Ms. Nga and her lawyer wanted to clarify the 47 billion VND spent on "projects" and "National Assembly deputies" that had been presented to the investigation agency. However, the panel of judges said that this issue had been separated for investigation and trial in the second phase of the case, so it would not be considered here.

According to VNE