Đoàn Văn Huấn (left) and Nguyễn Văn Chính (right) are prosecuted for “violating regulations on exploration and exploitation of natural resources, causing severe consequences” and “violating regulations on accounting, causing severe consequences.” Photo bocongan.gov.vn

Đoàn Văn Huấn, general director of Thái Dương Group Joint Stock Company, was detained by the Ministry of Public Security for allegedly directing, illegally exploiting and consuming more than 11,000 tonnes of rare earth ores worth about VNĐ440 billion (US$17.7 million).

The ministry said on Friday morning that it also detained Nguyễn Văn Chính, deputy general director cum chief accountant of the company.

Both Huấn and Chính were prosecuted for “violating regulations on exploration and exploitation of natural resources, causing severe consequences” and “violating regulations on accounting, causing severe consequences.”

The ministry also prosecuted four other defendants: Đặng Trần Chí, director of Hợp Thành Phát Transport Trading Company Limited; Phạm Thị Hà, accountant of the company; Lưu Anh Tuấn, chairman of the Board of Directors of Việt Nam Rare Earth Joint Stock Company; and Nguyễn Thị Hiền, accountant of the company.

The four defendants were investigated for "violating regulations on accounting, causing serious consequences", following Clause 3, Article 221 of the Penal Code.

The ministry said its Investigative Police Office was conducting a specialised investigation to clarify illegal acts in the exploitation, processing and consumption of rare earth ores and iron ores of Thái Dương Group Joint Stock Company at Yên Phú Mine in Yên Phú Commune, Văn Yên District in the northern mountainous province of Yên Bái.

Previously, on October 9, the ministry’s Investigative Police Department for Corruption, Smuggling and Economic Crimes urgently inspected 21 mining locations and private homes of the relevant suspects in Yên Bái Province and three other provinces and cities. The police then temporarily seized an estimated 13,715 tonnes of rare earth ore and more than 1,400 tonnes of iron ore.

The initial investigation results determined that Huấn and Chính illegally ordered and organised the exploitation and consumption of 11,233 tonnes of rare earth ore, worth about VNĐ440 billion ($17.7 million), and 152,856 tonnes of iron ore, worth VNĐ192 billion ($7.75 million).

The department accused the defendants of benefiting from the illegal sale of the rare earth ore and iron ore with a total amount of VNĐ632 billion ($25.5 million).

Huấn and Chính were also found making a deal with Việt Nam Rare Earth Joint Stock Company and Hợp Thành Phát Transport Trading Company Limited in the process of buying and selling rare earth ore and iron ore, to issue VAT invoices to reduce the quantity and prices of the ores, helping Thái Dương Group Joint Stock Company leave off its accounting books over VNĐ28 billion ($1.13 million) earned from selling the rare earth ore and iron ore. Thái Dương Group Joint Stock Company failed to fulfil its tax declaration and payment obligations, causing a (temporary) loss to the State of over VNĐ7.5 billion ($302,700).

The ministry said that the Investigative Police Office was investigating and clarifying the nature, role, and criminal acts of the defendants and related suspects to complete the investigation and recover assets for the State. — VNS