Ho Chi Minh City once refused to hand over 'golden' land to Vu Nhom

The Supreme People's Procuracy's indictment determined that former intelligence lieutenant colonel Phan Van Anh Vu (aka Vu Nhom) was assisted by two former deputy ministers of the Ministry of Public Security, Tran Viet Tan, Bui Van Thanh, and two leaders of the Intelligence Department, to acquire seven prime land plots in Da Nang and Saigon. This purpose was not for professional activities but for Vu to profit, causing a loss of VND1,160 billion to the State.

In Ho Chi Minh City alone, the government once refused to hand over land near1,300 m2at 8 Nguyen Trung Truc(District 1) for Bac Nam 79 Joint Stock Company (a front company of the Ministry of Public Security, with Vu as Chairman of the Board of Directors).

According to the investigation, as soon as he was recruited as an intelligence officer of General Department V (Ministry of Public Security) in October 2009, Vu proposed to replace the HCM City Cultural Development and Import-Export Company to rent the land at 8 Nguyen Trung Truc. Nguyen Huu Bach (Head of Department, later Deputy Director); Phan Huu Tuan (Director, later Deputy Director General) sent a report to the Ministry of Public Security, requesting the HCM City People's Committee to implement. The purpose of use was to build a high-rise commercial area, offices, hotels, and apartments "to serve the special work" of the Southern Ministry of Public Security.

Although not approved by Ho Chi Minh City, Vu Nhom agreed to sign compensation and support contracts to transfer land lease rights to the Cultural Development and Import-Export Company. Not approved by Ho Chi Minh City People's Committee, on May 15, 2010, Bac Nam 79 Company continued to send a request letter.

On June 3, 2010, the Ho Chi Minh City People's Committee issued an official dispatch approving Bac Nam 79 to use the land at 8 Nguyen Trung Truc, but "must comply with the planning objectives of Ho Chi Minh City". Two months later, the Ministry of Finance agreed in principle to let Vu Nhom Company lease land for security and defense purposes as requested by the Ministry of Public Security.

Wanting to rent at a low price, Nguyen Huu Bach drafted and Phan Huu Tuan initialed for Mr. Tran Viet Tan to sign a report to the Prime Minister. On February 15, 2012, the Government commented that the Ministry of Public Security building an office on this land was a special case, and agreed to let Ho Chi Minh City rent at a preferential price. In case Bac Nam 79 Company uses the land for real estate business purposes, it will be collected according to regulations.

On April 18, 2012, the HCM City Department of Finance issued an official dispatch confirming the land rental price at nearly 600,000/m2 per year - remaining unchanged for the first 5 years. Vu paid nearly 3.8 billion VND and was granted a certificate of ownership of the house and other assets attached to the land. Currently, the land is the headquarters of Bac Nam 79 Company.

How two 'huge' plots of land in Saigon were acquired

LandNo. 15 Thi Sach (District 1)including 2,700 m2 of house and more than 2,300 m2 of land, which has been leased by Ho Chi Minh City to Giai Phong Film Company Limited under the Ministry of Culture, Sports and Tourism (VH-TT&DL) for many years. On June 23, 2014, General Department V of the Ministry of Public Security issued an official dispatch drafted by Nguyen Huu Bach and signed by Phan Huu Tuan, requesting the Ministry of Culture, Sports and Tourism to let Bac Nam 79 Company re-lease the land "for security purposes", with compensation of nearly 30 billion VND.

Four months later, Deputy Minister of Public Security Tran Viet Tan sent a dispatch to the Ho Chi Minh City People's Committee requesting to lease the land. When approved, Bac Nam 79 Company paid the budget nearly 7 billion VND in compensation for assets and structures on the land, but it was deducted from the land rent payable.

By June 2015, Vice Chairman of Ho Chi Minh City People's CommitteeNguyen Huu Tinsigned a decision to lease the building to Vu Company for a period of 50 years to build an office, paying annual rent. However, immediately after that, Vu established a project to add additional functions with a height of 83 m including 115 apartments, 72 offices and 88 hotel rooms.

Bac Nam 79 and Novaland Company signed an agreement: one party has the legal rights to the land, the other party has the financial obligations and construction investment, after deducting expenses, the profits will be divided in half. To implement the project, the two parties established Madison Company Limited to sign contracts with construction contractors.

On December 8, 2015, the Ministry of Public Security sent a "urgent" document by Deputy Minister Tran Viet Tan to the Ho Chi Minh City People's Committee requesting support and completion of procedures for Bac Nam 79 to put the project into implementation on schedule. On the same day, Vu Nhom and his partner signed an agreement for Madison Company to exercise full rights and obligations on behalf of Novaland. Although they had not yet fulfilled their tax obligations and had not yet been granted a land use right certificate, Vu Nhom and his partner built an 18-storey building.

According to Madison Company's report, the total cost of the project is currently over VND 700 billion, of which more than half has been paid. As of the end of September 2018, the company has signed contracts to buy, sell and lease real estate with more than 100 customers and organizations, corresponding to more than 130 products, collecting more than VND 1,000 billion from customers.

In a similar form, the 3,800 m2 land at129 Pasteur (District 3,used by the General Department IV of the Ministry of Public Security as a foreign guest house) was also transferred to Vu Nhom's Nova Bac Nam 79 Company.

On May 28, 2015, Deputy Minister of Public Security Bui Van Thanh reported to the Prime Minister, proposing to transfer the land use rights and assets on the land to Nova Bac Nam 79. More than 4 months later, this proposal was approved. Based on the appraisal results of the Ho Chi Minh City authorities, this land and housing area was determined to be worth nearly 300 billion VND.

One day after General Department IV signed a contract in principle to transfer land use rights to Nova Bac Nam 79, Vu Nhom signed a contract to promise to buy and promise to sell with Peak View Investment Joint Stock Company. By early January 2018, the three founding shareholders of Peak View continued to completely transfer the land to Saigon - Gia Dinh Real Estate Joint Stock Company for more than 350 billion VND, and this unit is managing and using it.

The conclusion of the Council for Asset Valuation in Criminal Proceedings at the time of the case's initiation (February 2018) determined that this land was worth nearly VND520 billion. Accordingly, the investigation agency said that the State suffered a loss of more than VND220 billion. Regarding No. 8 Nguyen Trung Truc - where the headquarters of Bac Nam 79 Company is located, the Tax Department determined that the rental price was only half of the actual price, causing a loss of more than VND6 billion.

Particularly at the land plot at 15 Thi Sach, at the end of 2018, the Central Council for Asset Valuation in Criminal Proceedings concluded that the value was more than 760 billion VND. However, while waiting for price approval, violations related to Vu Nhom were discovered, so the Ho Chi Minh City People's Committee froze this property. The investigation agency did not determine the damage caused by the conversion of land use purpose but only based on the damage to the State of nearly 7 billion - this is the amount that Vu Nhom illegally deducted from the rent for the above land plot.

In addition to two former Deputy Ministers of Public Security and leaders of the Professional Department being prosecuted for assisting Vu Nhom, former Vice Chairman of the Ho Chi Minh City People's Committee, Nguyen Huu Tin, was also arrested to investigate his behavior.Violating regulations on management and use of state assets causing loss and wasteaccording to Article 219 of the 2015 Penal Code.

Also accused of the above acts are 4 others: Mr. Dao Anh Kiet (61 years old, former director of the Department of Natural Resources and Environment of Ho Chi Minh City); Mr. Le Van Thanh (56 years old, Deputy Chief of Office of Ho Chi Minh City People's Committee); Mr. Nguyen Thanh Chuong (44 years old, Head of Urban Department, Office of Ho Chi Minh City People's Committee); Mr. Truong Van Ut (Deputy Head of Land Management Department, Ho Chi Minh City Department of Natural Resources and Environment).