VietNamNet Bridge - Mr. Paul Le Hung, a Vietnamese American, wanted to grant "humanitarian aid" of $10 billion per year for Vietnam. Some businesses and provinces have signed "memorandums of understanding" with him but Tien Giang province refused the offer.

Photo for illustration.

On November 24, Tien Giang Province People's Committee sent a dispatch to the provincial Department of Transportation to refuse the huge aid package of “a foreign group." Earlier, in August the committee received documents from the Department of Transportation on the projects to build two roads by “foreign aid” without interest and no payback.

Accordingly, Mr. Le Van Dang - Director of Dong Thap Muoi JSC Investment, Construction and Development, based in Tien Giang, asked the province’s permission to build two roads by non-refundable capital from the Diamond Access Inc. and the UMG Foundation, with the total investment in the country of up to $10 billion per year.

Particularly, these group promised to grant Tien Giang with VND4.2 trillion ($200 million) for road building. Conditions for receiving the capital from Diamond Access Inc. is the State Bank of Vietnam’s guarantee worth $10 billion for Diamond Access Inc.

However, Tien Giang provincial authorities rejected the offer, saying that it is inappropriate to the regulations and the actual conditions in Tien Giang and in Vietnam.

It is reported that the “huge aid” of $10 billion comes from Paul Le Hung, representative of Diamond Access Inc in Asia.

In an open letter accompanied with a "profile," Hung said that for humanitarian purposes, the group has provided similar funding to more than 20 countries around the world and states in the US. "The group now wants to directly fund social welfare projects such as transport works, seaports, airports, schools, poverty elimination... in order to build a wealthier and better Vietnam. If it is approved, the funds will be transferred to Vietnam within 30 days, $10 billion each year. The capital is legally registered in accordance with international law as well as Vietnam laws. The money is now at big banks in the world, such as Barclays, HSBC ...," the open letter dated August 5, 2013, signed by Paul Le Hung wrote.

According to Paul Le Hung, in October 2013 he signed a memorandum of understanding with the director of the Department of Transportation of Soc Trang province and the Director of the Department Planning and Investment of Soc Trang to build two roads in Soc Trang.

Similarly, Hung also signed a memorandum of understanding with the Chairman of Song Cong town in the northern province of Thai Nguyen to build social roads, schools and hospitals here.

However, the directors of the Department of Transportation and Department of Planning and Investment of Soc Trang Province said that the signing of a "memorandum of understanding" with Paul Hung Le has "no legal validity" because receiving foreign investment must go through a lot of steps.

An official of the State Bank of Vietnam said that the clause requiring the central bank to provide a guarantee for $10 billion for Diamond Access Inc as the beneficiary as a condition of receiving non-refundable or non-interest funds is ridiculous, because the central bank has no function to guarantee loans of businesses or provinces.

He added that the central bank has recently noted many organizations and individuals introducing themselves as representatives of international organizations to work with a number of ministries, provincial authorities and businesses to offer big loans with low interest rate or long term or non-refundable aid with the same conditions as Paul Hung Le.

Compiled by S. Tung