The chairman of Phuc Son Group, Nguyen Van Hau (known as Huu ‘Phao’), has been accused of repeatedly bribing officials from the Vinh Phuc Provincial People's Committee, Department of Finance, and Department of Natural Resources and Environment to artificially lower land prices at a billion-dollar project.

Manipulating land prices at the wholesale market project

According to the investigation, the Wholesale Market Project was approved in 2012, initially developed by Song Hong Group with a planned area of 188 hectares and a total investment of $96.5 million (2.29 trillion VND) for the first phase.

However, by the end of 2016, the developer had only completed the 1/500 planning, failing to advance other aspects of the first phase. Consequently, the Vinh Phuc Provincial People's Committee decided to revoke the investment decision.

At this point, Nguyen Van Hau met with former provincial leaders to negotiate the purchase of shares from Song Hong Group to continue the project.

Despite the incomplete documentation, the Vinh Phuc Provincial People's Committee approved the investment decision, assigning Thang Long Company (owned by Hau) as the new developer.

Bribery to reduce land prices

In June 2018, as the project reached the stage of calculating land use fees, Nam Ha Company, led by Nguyen Ngoc Huy, was assigned to assess the land value. The initial appraisal set the land value for a 5.4-hectare commercial plot at $29.6 million (708 billion VND).

Believing this price to be too high, Huu ‘Phao’ sought out Vinh Phuc provincial leaders to influence and reduce the land value.

Key players and bribery tactics

Hau contacted Nguyen Van Khuoc, former director of the Department of Natural Resources and Environment and chairman of the Land Valuation Council of Vinh Phuc Province, offering financial incentives to accelerate the land valuation process and lower the land use fee.

Khuoc agreed and introduced Hau to Chu Quoc Hai, former deputy director of the Department of Natural Resources and Environment, who assured Hau that he had been directed by Khuoc to assist. Subsequently, Hau also met Hoang Van Nhiem, former deputy director of the Department of Finance, to seek further support for favorable land valuation.

On October 2, 2018, the Department of Finance requested a re-survey of the land, but Nam Ha Company did not adjust the valuation. Later, on November 28, 2018, the Land Valuation Council convened and asked Nam Ha Company to reinvestigate local land prices to ensure more market-consistent assessments.

To secure favorable results, Huu ‘Phao’ directed his subordinates to coordinate with Nam Ha Company, providing land price comparison samples that aligned with the desired lower valuation.

Bribery of provincial officials

According to Hau’s testimony, after the revised appraisal, Hau continued meeting with Hoang Thuy Lan, Nguyen Van Khuoc, Chu Quoc Hai, and Hoang Van Nhiem to discuss lowering the land valuation.

They agreed to support the adjustment, and in December 2018, the Land Valuation Council approved a reduced land value of $21.2 million (507 billion VND).

After obtaining the revised valuation certificate, Hau instructed his staff to pay the adjusted fee to the state budget.

The investigation agency found that Nguyen Van Hau had repeatedly bribed officials with a total of $1.9 million (45.4 billion VND) and $2.32 million USD to various individuals at the Provincial People’s Committee, Department of Finance, and Department of Natural Resources and Environment. These bribes were intended to influence the valuation process and reduce the land price for the project.

T. Nhung