Many scandalous projects

Quoc Cuong Gia Lai Joint Stock Company (QCG), with Ms. Nguyen Thi Nhu Loan as the general director, is known as one of the leading real estate companies in the southern region. This is a famous company but also has many scandals, once associated with the name of Mr. Nguyen Quoc Cuong (Cuong Do La) - Ms. Loan's son and also a member of the company's board of directors, before withdrawing from QCG and starting his own business.

Quoc Cuong Gia Lai of Ms. Nguyen Thi Nhu Loan recently resurfaced after being ordered by the court to pay 2,883 billion VND in the Truong My Lan case and most recently, the absence of Ms. Nguyen Thi Nhu Loan "due to health" led to the failure to organize QCG's 2024 Annual General Meeting of Shareholders on June 30.

On the morning of July 19, the Ministry of Public Security searched the house of the general director of Quoc Cuong Gia Lai Company, in District 3, Ho Chi Minh City.

The incident occurred in the context of the authorities expanding the investigation into violations occurring at the Vietnam Rubber Industry Group, Dong Nai Rubber Company, Ba Ria Rubber Company, the Ministry of Natural Resources and Environment, and related units. Including violations at the land project 39-39B Ben Van Don, Ward 12, District 4, Ho Chi Minh City (over 6,000 m2, originally owned by the State).

In terms of origin, the land plot 39-39B Ben Van Don is state-owned land, assigned to Dong Nai Rubber Company and Ba Ria Rubber Company for management. These are two enterprises under the Vietnam Rubber Industry Group.

In December 2009, the two rubber enterprises mentioned above contributed capital to establish Phu Viet Tin Company Limited (Phu Viet Tin; head office at 39-39B Ben Van Don) with a charter capital of 6 billion VND.

In March 2010, the People's Committee of Ho Chi Minh City decided to reclaim and hand over the land plot 39-39B Ben Van Don to Phu Viet Tin for investment and construction of the project according to the plan.

After being assigned the land plot 39-39B Ben Van Don, Phu Viet Tin not only did not implement the project but also the structure of the capital contributors continuously changed. In 2014, Quoc Cuong Gia Lai Joint Stock Company (Quoc Cuong Gia Lai) appeared.

According to VietNamNet reporters' investigation, in this case, Quoc Cuong Gia Lai spent 465 billion VND to buy capital from Phu Viet Tin, then sold it to two legal entities and one individual, earning a profit of 382 billion VND.

At the end of March 2017, Phu Viet Tin merged into Phuc Nguyen Real Estate Investment and Development Company Limited.

During the inspection of the project on the land plot 39-39B Ben Van Don, District 4, the Government Inspectorate determined that Phu Viet Tin Company did not establish an investment project, which is a violation of Decree 12/2009 of the Government.

In addition, the decision of the Ho Chi Minh City People's Committee to reclaim, allocate land and appoint Phu Viet Tin Company as the investor to implement the project at 39-39B Ben Van Don without auction is not in accordance with the 2003 Land Law and Circular 03/2009 of the Ministry of Planning and Investment.

The land plot at 39-39B Ben Van Don, Ward 12, District 4, Ho Chi Minh City fell into the hands of Quoc Cuong Gia Lai after a rather roundabout capital contribution transaction, before being sold to another party. It is now The Tresor project of Novaland Group.

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Police appeared in front of Ms. Loan's house at 9am this morning. Photo: NL

QCG also got into trouble with 2 Phuoc Kien projects.

According to the conclusion of the second phase of the investigation of the Van Thinh Phat (Truong My Lan) case, the investigation agency has proposed to seize 16 land use rights in Phuoc Kien commune, Nha Be district (HCMC). The Trial Council sentenced QCG to return the entire amount of money it received from the defendant Truong My Lan, which is 2,882.8 billion VND, to ensure the execution of the judgment for the defendant Truong My Lan in the entire case.

In early 2022, Quoc Cuong Gia Lai was asked to consider its responsibility related to the transfer of 32 hectares of public land in Phuoc Kien commune, Nha Be district. Previously, in October 2021, the Ho Chi Minh City People's Procuracy also returned the file, requesting to continue to appraise the assets to accurately determine the value of Tan Thuan Company's assets at the time Tan Thuan Company and Quoc Cuong Gia Lai signed the cancellation of the contract to transfer the compensated land at the Phuoc Kien residential area project in May 2018.

Over the past decade, Quoc Cuong Gia Lai of Mr. Cuong Dola's mother has not only been involved in scandals related to the two Phuoc Kien projects but also many scandals related to the publication of false information and lawsuits by customers who bought apartments in the projects of this enterprise.

In late 2016, Sunny Island Investment JSC and Quoc Cuong Gia Lai signed a memorandum of understanding on QCG transferring 100% of QCG’s ownership in a company that would be established from capital contribution of the entire Phuoc Kien project to Sunny Group. The cooperation with Sunny Island later ran into problems and led to prolonged litigation.

More recently, there was the case of buying cheap land at the Phuoc Kien project of 32 hectares. The incident caused the leadership of Tan Thuan Company (under the Ho Chi Minh City Party Committee Office) to be disciplined after selling cheap land to QCG.

Tan Thuan has designated to sell more than 30 hectares of compensated land in Phuoc Kien residential area (Phuoc Kien commune, Nha Be district) to Quoc Cuong Gia Lai Joint Stock Company (QCG) at a price of only 1.29 million VND/m2.

Years of losses, stocks 'up and down'

QCG is a very volatile stock over the years, increasing and decreasing at times up to 5-7 times. For more than a decade, QCG has been continuously involved in scandals and scandals, from projects related to public land, slow site clearance, projects being sued by customers, to low dividend payments, erratic stocks...

QCG recorded increases and decreases with a rare wide amplitude in the stock market.

From October 2016 to March 2017, QCG shares jumped from over VND3,000/share (adjusted price) to over VND24,000/share, then plummeted to VND4,500 in October 2018.

From about 6,000 VND/share in July 2021, it jumped to 21,600 VND/share in mid-January 2022.

Since 2010, QCG shares have skyrocketed twice to around VND25,000-30,000/share (adjusted price) and also dropped three times to around VND5,000/share.

In the morning trading session of July 19, QCG shares fell 7% to VND9,070/share. The remaining floor selling volume by the end of the morning was up to more than 2.7 million units. Previously, this stock had many sessions of floor and near floor selling.

In August 2020, Ms. Nguyen Thi Nhu Loan also stopped holding the position of chairwoman (only remaining as CEO) after her son, Mr. Nguyen Quoc Cuong, left QCG and developed his own projects.

Previously, in November 2018, Mr. Nguyen Quoc Cuong withdrew from all positions at QCG.

Although Ms. Loan is no longer the chairwoman and her son has withdrawn from QCG, Ms. Loan's family still holds about 55% of shares at QCG.

Ms. Loan is currently the largest shareholder, holding nearly 102 million QCG shares, equivalent to 37.05% of the company's capital. Ms. Loan's daughter - Nguyen Ngoc Huyen My is holding nearly 39.4 million QCG shares (equivalent to 14.32%); Ms. Loan's younger sister, Nguyen Thi Anh Nguyet, holds nearly 9.7 million QCG shares (3.52%). Mr. Nguyen Quoc Cuong (Ms. Loan's son) holds 537,500 QCG shares (0.2%).

The person who replaced Ms. Loan as Chairman of the Board of Directors is Mr. Lai The Ha. Mr. Ha is known as a long-time shareholder, attached to Quoc Cuong Gia Lai since QCG was a private enterprise in Gia Lai.

Over the years, QCG has recorded low annual profits, often losses, negative cash flow, and continuous lawsuits...

For many years, QCG has repeatedly borrowed hundreds of billions of dong from individual leaders, such as General Director Nguyen Thi Nhu Loan, Chairman of the Board of Directors Lai The Ha...

While Quoc Cuong Gia Lai was drowning in difficulties, with poor business and struggling to pay off debts, there were many times when Mr. Cuong Dola was famous for his hot girls and supercars.

Quoc Cuong Gia Lai was proposed to review responsibility, Cuong Dola's stock price plummeted.

Shares of the company owned by Mr. Nguyen Quoc Cuong's mother (Cuong Dola) plummeted for the fourth consecutive session and evaporated tens of percent, equivalent to thousands of billions of VND, after receiving bad news.