Investigators from the Ministry of Public Security on December 8, issued a decision to prosecute and detain Nguyen Thanh Tai, former vice chairman of the HCMC People’s Committee, for his alleged involvement in the illegal leasing and transfer of some 5,000 square meters of land lots at 8-12 Le Duan Boulevard in HCMC’s District 1, the local media reported.

Nguyen Thanh Tai, former vice chairman of the HCMC People’s Committee - PHOTO: MINISTRY OF PUBLIC SECURITY

On the same day, the ministry and the Supreme People's Procuracy examined his homes in districts 2 and 4.

Ministry of Public Security investigators on the day also began criminal proceedings against Nguyen Hoai Nam, secretary of the District 2 Party Committee, Dao anh Kiet, former director of the HCMC Department of Natural Resources and Environment, and Truong Van Ut, ex-deputy head of the Land Management Division at the department, for their involvement in the case. Nam was banned from leaving his place of residence, while Ut and Kiet had been earlier arrested for violations in another case.

According to the results of the Government Inspectorate, in 2007, HCMC Housing Development and Trading Co., Ltd, was assigned to manage and lease nearly 5,000 square meters of land at 8-12 Le Duan Boulevard, which is a prime location in HCMC, to four companies operating under the Ministry of Industry and Trade.

The city later wanted to use the site for a high-end mixed-use property development project.

Under the law, the city government should have auctioned the land use rights and assets at the site. However, in 2010 the city approved the establishment of Lavenue, in which HCMC Housing Development and Trading Co., Ltd contributed half of the charter capital, while four companies under the Ministry of Industry and Trade each had 12.5% interests.

The four companies later transferred their capital in the project to Kido Investment Company Limited, for a profit of VND200 billion.

In June 2011, Lavenue was allowed to use the site to develop and exploit the project within 50 years.

The overall responsibility rests with the Standing Board of the HCMC government during the 2011-2015 tenure, and direct responsibility lies with Tai, the Government Inspectorate confirmed.

The HCMC government is carrying out procedures to take back the site and put it up for auction, and handle down penalties to those responsible in the HCMC government, the relevant agencies and enterprises caught violating the law, as required by the Government Inspectorate.

SGT