The Ho Chi Minh City Police Department's Investigation Security Agency has just issued a decision to prosecute Huynh The Nang and Dinh Truong Chinh for "Violating regulations on management and use of state assets, causing loss and waste".
The two defendants violated the law in managing and using land plots at 33 Nguyen Du and 34, 36, 42 Chu Manh Trinh, Ben Nghe Ward, District 1, Ho Chi Minh City, causing particularly serious damage to the State.
Among them, Mr. Huynh The Nang (64 years old) is former General Director of Southern Food Corporation (Vinafood 2).
Mr. Dinh Truong Chinh (49 years old), former Director of Viet Han Real Estate Construction Advertising Trading Company Limited, was also mentioned as the ex-husband of Miss World Vietnam Luu Thi Diem Huong.
Mr. Dinh Truong Chinh (Photo: HDTC).
Who is tycoon Dinh Truong Chinh?
Mr. Dinh Truong Chinh is known as the founder and Chairman of the Board of Directors of Viet Han Company for about 10 years (2006-2016). This company, together with its partners, implemented many large-scale capital projects in Ho Chi Minh City, Ba Ria - Vung Tau, Phu Tho, Hanoi...
Currently, Mr. Chinh is Chairman of the Board of Directors of Housing Development and Trading Joint Stock Company (HDTC) - a state-owned enterprise equitized in 2016.
HDTC has implemented many large projects in Ho Chi Minh City such as Binh Trung Residential Area 10ha (District 2), Binh Tri Dong Residential Area 28ha (Binh Chanh District), An Phu - An Khanh New Urban Area 131ha (District 2), An Suong Residential Area 65ha (District 12)...
In addition, HDTC also implemented many resettlement housing projects such as To Hien Thanh Apartment Complex (District 10), Nguyen Van Luong Apartment Complex (Go Vap District), Binh Dang Apartment Complex (District 8), Binh Phu Apartment Complex (District 6), Lo S Hung Vuong Apartment Complex (District 6), Binh Trung Apartment Complex (District 2), 5-storey apartment complex in An Phu - An Khanh new urban area (District 2)...
As of December 31, 2022, Mr. Dinh Truong Chinh owns 26.45% of HDTC's capital. Two other institutional shareholders holding large shares are FR Real Estate Finance Investment Joint Stock Company (34.79% of capital) and Saigon Real Estate Corporation (30% of capital). In addition, Ms. Dinh Chau Ngoc Huong holds 8.67% of capital.
HDTC's charter capital at the end of 2022 reached nearly VND 2,242 billion. The company's report at the end of 2022 also stated that there was a receivable of VND 407 billion (advance payment for share purchase) from Mr. Dinh Truong Chinh.
In 2022, HDTC achieved more than 713 billion VND in net revenue, down 24% compared to the previous year and after-tax profit of nearly 97 billion VND, down 48%.
Total assets as of the end of 2022 were nearly VND 12,493 billion, an increase of 41% over the previous year. Financial debt was VND 1,970 billion, debt/equity ratio was 0.88 times.
In 2023, HDTC targets revenue of VND1,000 billion and profit of VND200 billion. The company plans to increase capital to VND3,026.5 billion through issuing shares to pay dividends in 2022, at a rate of 35%.
The "golden land" area has been involved in a series of violations.
Regarding the land plots at 33 Nguyen Du and 34-36-42 Chu Manh Trinh, Ben Nghe Ward, District 1, the Government Inspectorate pointed out a series of violations by Vinafood 2 in converting state assets to private ones.
According to the conclusion, these 4 real estate facilities have a total area of nearly 6,300m2 and are owned by the State. In 1993, Vinafood 2 was assigned to be the headquarters and collective housing for officers and employees.
Land plots at 33 Nguyen Du and 34-36-42 Chu Manh Trinh, Ben Nghe ward, District 1 were once pointed out for a series of violations (Photo: Hai Long).
By 2004, Vinafood 2 was permitted by competent authorities to change the purpose of use of the above real estate from production and business purposes to construction of office buildings and high-rise apartments for sale and lease...
In 2010, Vinafood 2 was granted a Certificate of land use rights, house ownership rights and other assets attached to the above real estate by the Ho Chi Minh City People's Committee to establish investment procedures for the Hotel, Office and Commercial Center Project with a land allocation term of 50 years.
After that, Vinafood 2 cooperated and contributed capital with Viet Han Advertising, Construction and Real Estate Company Limited (Viet Han Company) to establish Viet Han Saigon Trading, Service and Construction Company Limited (Viet Han Saigon Company) to carry out the project of building a hotel, office, and commercial center on the above land in the form of paying land use fees at one time.
According to the inspection conclusion, during the cooperation process, Vinafood 2 and Viet Han Company transferred the above 4 real estate facilities at a value lower than the value of the land use rights paid.
After having enough money to sell land to Viet Han Company, Vinafood 2 reported to the Ministry of Agriculture and Rural Development for approval to quickly implement the handling of real estate facilities at 33 Nguyen Du and 34-36-42 Chu Manh Trinh, in order to overcome losses in business operations.
In addition, Vinafood 2 also violated the law by not making a plan to compensate, support, and relocate 34 households living on this land to submit to competent authorities for approval.
The inspection conclusion also pointed out that Viet Han Saigon Company took advantage of the certificates of land use rights, house ownership rights and other assets attached to the land at the above 4 plots of land to sign 7 mortgage contracts at the same time to illegally borrow more than 6,300 billion VND.
Based on the recommendation of the Government Inspectorate, the Prime Minister directed the Ho Chi Minh City People's Committee to reclaim 4 houses and land of Viet Han Saigon Company. At the end of 2022, Chairman of the Ho Chi Minh City People's Committee Phan Van Mai signed a decision to reclaim this land.
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