Vinafood II Land Scandal: Chinh Sentenced to 13 Years, State Losses Recovered
Vinafood II, facing financial losses in 2014-2015, attempted to sell four prime sites in Ho Chi Minh City to recover capital and repay debts. This move, however, led to a complex web of transactions and ultimately resulted in prison sentences for several involved parties.
The saga began when Dinh Truong Chinh, then chairman of HTDC, approached Vinafood II to acquire the land. Chinh, through Viet Hen Real Estate Co., created Viet Han Saigon Co. to pursue the investment project. In a series of transactions, Chinh sold the land to his cousin Hoang Ngoc Cam Hong, a Canadian national, for VND792 billion. Hong then transferred her stake to Maa Dong Real Estate JSC for VND1,683 billion.
Vinafood II was initially assigned to manage and use the properties at four prime locations, including 33 Nguyen Du street and 34, 36, 42 Chu Manh Trinh street in Saigon ward. However, the company was later revealed to have been created to legitimize the transfer of land-use rights. Vinafood II transferred VND570 billion of land value directly and the remaining VND160 billion through divesting a 20% capital stake.
The HCMC People's Court sentenced Chinh to 13 years in prison for violating regulations on management and use of state assets, causing loss and waste. Former Vinafood II officials Huynh The Nang and Nguyen Tho Tri received sentences of 9.5 and 6 years respectively. Chinh was also ordered to return VND970 billion in illicit gains.
The court's decision brings closure to a case that saw state losses of VND970 billion. The prison sentences and return of illicit gains serve as a deterrent for future misconduct in the management and use of state assets.
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