Huge land fund of Rubber Company related to Mr. Nguyen Cao Tri and Ms. Truong My Lan

As Lao Dong reported, among the 86 people proposed for prosecution by the Ministry of Public Security's Investigation Police Agency (C03), defendant Nguyen Cao Tri was accused of "Abuse of trust to appropriate property" in the case that occurred at Van Thinh Phat Group and SCB Bank and related units.

Among these, Industrial Rubber Corporation (Industrial Rubber Company, UPCoM: IRC) is the only unit publicly listed on the stock exchange, thereby revealing the huge land fund this enterprise owns.

According to the information announcement published by Industrial Rubber Company at the end of 2017, the total land area that the Company is managing according to legal documents (before equitization) is 11,146,541.8 m2 located in the two provinces of Dong Nai and Binh Thuan.

Specifically, in Dong Nai, the total legal area owned by the Industrial Rubber Company is 9,960,574m2. Of which, the area the company is managing and using is 8,948,103.2m2. Including, directly rented from the state with annual payment of 8,483,757.5m2 and re-rented from Dong Nai Food Industry Corporation without signing a contract and not paying 464,345.7m2. Unused land proposed to be returned to the locality is 1,012,470.8m2.

Part of IRC's area in Dong Nai. Photo taken from the information announcement of Industrial Rubber Company.

It is known that Dong Nai Provincial People's Committee has issued Official Dispatch No. 1577/UBND-CNN dated February 24, 2017 approving the land use plan of Industrial Rubber Company, the land area used after equitization is 848.37 hectares with the form of state land lease with annual payment and handing over 101.25 hectares to local management.

Meanwhile, the entire area that the Industrial Rubber Company is managing and using in Binh Thuan province is 1,185,967.8m2, which is leased by the state and paid annually. There is a decision and a 30-year land lease contract, a Certificate of Land Use Rights has been issued, and all annual land rent has been paid and settled.

According to the third quarter 2023 financial report of Industrial Rubber Company, as of September 30, 2023, the company's total assets reached 185 billion VND, a decrease of about 10 billion VND compared to the beginning of the year.

Industrial Rubber Company's liabilities are approximately 11 billion VND, with insignificant fluctuations after 9 months. It is noteworthy that the company did not record financial debt.

The equity of Industrial Rubber Company reached 175 billion VND. Of which, Capella Group Joint Stock Company owns 7.50% of the capital of Industrial Rubber Company.

At the end of the first 9 months of last year, Industrial Rubber Company brought in nearly 11 billion VND in revenue, but due to operating below cost price, this company reported a loss after tax of more than 6 billion VND, while in the same period last year it made a profit of nearly 16 billion VND.

According to the investigation agency, Mr. Nguyen Cao Tri received money from Ms. Truong My Lan many times, totaling 1,000 billion VND, through three forms: transferring 65% of the charter capital of Industrial Rubber Joint Stock Company (UPCoM: IRC), buying 100% of the charter capital of Saigon Dai Ninh Company and investing in a project in Hai Ha district, Quang Ninh province.

Specifically, regarding the Industrial Rubber Company, which was formerly a state-owned enterprise but was then equitized from 2017-2018. Mr. Tri owns more than 30% of the charter capital.

According to the investigation, in December 2017, Mr. Tri agreed to transfer 65% of the charter capital to Ms. Lan for 45 million USD. Ms. Lan paid 21.25 million USD (nearly 500 billion VND) to buy all 30% of the charter capital that Tri owned at Industrial Rubber Company.

In order to legalize, defendant Tri directed the people who signed the investment trust contract to transfer all shares to Ms. Lan through a representative, without recording the transfer price.

However, this investment trust is actually the purchase and sale of shares that have not been transferred. The trust contract is a personal agreement between Mr. Tri and Ms. Lan, not reported to the Industrial Rubber Company. All the money was spent by Ms. Lan.

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