“Super” Ecological Urban Area Dai Ninh Under Investigation: Chairman and Provincial Secretary of Lam Dong Arrested

UBND Lam Dong recently reported to the Provincial People’s Council on the implementation of key projects in the province from 2020 to 2025, including the Dai Ninh Ecological Commercial, Tourism, and Resort Urban Area.

According to the report, the project was certified for investment by the Provincial People’s Committee on December 30, 2010, for Saigon Dai Ninh Tourism Investment Corporation. The project area covers 3,595 hectares (including a water area of ​​1,960 hectares) in Phu Hoi, Ninh Gia, Ta Hine, and Ninh Loan communes, Duc Trong district. The total investment capital is 25,243 billion VND. The project has a duration of 50 years, starting from the date of investment certification. The investment progress has been made from 2010 to 2018.

The report states that the project has completed investment preparation procedures (land lease, land use change, planning) and has constructed some infrastructure items (a 600m2 hall, a rough hall, 15 expert houses). It has also cleared transportation routes (dirt roads) and some graded stone roads.

Currently, the Ministry of Public Security Investigation Agency and the Central Inspection Committee are conducting an inspection related to the project.

The Provincial People’s Committee of Lam Dong Province assessed that the project has been implemented in compliance with the legal regulations in each period. After one year of approving the investment certificate, the project has conducted investment procedures, completed land lease procedures, forest lease procedures, and planning.

However, there are still many limitations and existing issues. According to Conclusion No. 929/KL-TTCP dated June 12, 2020, of the Government Inspectorate, after the land use change in 2012, Saigon Dai Ninh Tourism Investment Corporation did not fulfill its financial obligations regarding land use fees as stipulated in Decision No. 737/QD-UBND dated April 16, 2014, of the Provincial People’s Committee, with an outstanding amount of 158/238 million VND and a late payment of 104,230 million VND (despite multiple reminders). Moreover, there is also a pending debt for compensating forest resources and environmental resources amounting to 6/660 million VND.

During land management and use, the investor allowed people to encroach and violate the regulations of the Land Law in 2013.

Additionally, during the project implementation, the company violated construction regulations (unauthorized construction of a hall, 15 expert houses without an approved detailed construction plan at a 1/500 scale, and no construction permit).

The main reason for the investor not concentrating resources on finance and human resources to complete the project after receiving the investment certificate is the delay in fulfilling financial obligations to the state, slow progress in implementing construction works, deforestation, and land encroachment.

The Lam Dong Provincial People’s Committee has made recommendations and proposals for the departments, agencies, and Duc Trong District People’s Committee to carry out their tasks after receiving the conclusions of the Ministry of Public Security Investigation Agency and the Central Inspection Committee.

In relation to the Dai Ninh Lake Tourism Area project, many officials in Lam Dong have been arrested, including the Chairman and the Provincial Secretary. Specifically, on January 2, 2024, the Criminal Investigation Police Department of the Ministry of Public Security issued a decision to initiate a prosecution, arrest and temporary detention, and search warrant for Mr. Tran Van Hiep, Chairman of the Lam Dong Provincial People’s Committee, for acts of bribery related to the Dai Ninh Ecological Commercial, Tourism, and Resort Urban Area project.

On January 24, the Criminal Investigation Police Department of the Ministry of Public Security issued a decision to initiate a prosecution, arrest and temporary detention, and search warrant for Mr. Tran Duc Quan, Secretary of the Lam Dong Provincial Party Committee, for the offense of “Abusing position and power while performing official duties.”

Mr. Tran Duc Quan had abused his position and power by violating the relevant laws and regulations when participating in directing the resolution of issues related to the Dai Ninh project in Lam Dong Province, causing very serious consequences.

Nguyen Cao Tri and Truong My Lan Business Deal

Saigon Dai Ninh Tourism Investment Corporation was established in January 2010, with its headquarters in Da Lat City and operates in the real estate business. At the time of establishment, the company’s charter capital was 300 billion VND. By August 2016, Saigon Dai Ninh increased its charter capital to 600 billion VND, with Southern Commerce Limited Liability Company holding the majority stake of 85%. The legal representative is currently Mr. Nguyen Cao Tri and Mr. Hoang Thanh Bach.

According to the investigation report of the Ministry of Public Security regarding the case at Van Thinh Phat Group and SCB Bank, Mr. Nguyen Cao Tri, Chairman of Van Lang Company and Capella Company, was accused of the offense of “Abusing trust to misappropriate property.”

According to the accusations, Mr. Nguyen Cao Tri became acquainted with Truong My Lan, Chairwoman of Van Thinh Phat Group, in 2017 and subsequently collaborated on investing in real estate projects and purchasing shares of the company. The defendant had received money from Truong My Lan on multiple occasions, totaling 1,000 billion VND, through three forms: transferring 65% of the charter capital of Industrial Rubber Company, buying 100% of the charter capital of Saigon Dai Ninh Company, and investing in a project in Hai Ha District, Quang Ninh Province.

According to the investigation, in December 2017, Mr. Tri agreed to transfer 65% of the charter capital of Industrial Rubber Company to Ms. Lan for a price of 45 million USD. Ms. Truong My Lan paid 21.25 million USD (nearly 500 billion VND) to buy the entire 30% of the charter capital owned by Mr. Tri. To legitimize the transaction, Mr. Tri instructed the individuals who were the signatories of the investment trust contract to transfer all shares to Ms. Lan through a representative.

The investigation agency determined that the investment trust was actually a transaction that had not been transferred. The trust contract was a personal agreement between Mr. Tri and Ms. Truong My Lan, without reporting to the Industrial Rubber Company. In reality, all the money was provided by Ms. Truong My Lan.

As for Saigon Dai Ninh Company, since its establishment, it has only been granted an investment certificate for one project, which is the Dai Ninh Ecological Commercial, Tourism, and Resort Urban Area in Duc Trong District, Lam Dong Province. The company, chaired by Ms. Phan Thi Hoa, is not related to Mr. Tri.

In 2020, Mr. Tri signed a contract with Ms. Hoa to buy back 100% of the charter capital for 5,000 billion VND. After several buy and sell transactions, Nguyen Cao Tri successfully owned 58% of the charter capital, becoming the legal representative of Saigon Dai Ninh and paid 2,230 billion VND to Ms. Hoa.

After acquiring shares of Saigon Dai Ninh Company, Mr. Tri immediately agreed to sell 100% of the shares he owned to Ms. Truong My Lan for 3,000 billion VND. Later, Ms. Lan transferred deposit money to Mr. Tri five times, totaling 20 million USD (approximately 460 billion VND) and 127 billion VND. However, Ms. Lan changed her mind and decided not to purchase the shares of Saigon Dai Ninh, so she converted 1 million USD and 127 billion VND into purchasing 10% of the charter capital of Van Lang Company.

The investigation found that the investment trust was actually an untransferred stock transaction. The trust contract was a personal agreement between Mr. Tri and Ms. Truong My Lan, without reporting to Industrial Rubber Company. In reality, all the funds were provided by Ms. Truong My Lan