300 billion "disappeared": Former Binh Thuan chairman receives heavy sentence?

Former Chairman of the People’s Committee of Binh Thuan Province Le Tien Phuong was proposed to be sentenced to 6-7 years in prison for violations in the Phan Thiet project. The People’s Procuracy accused him and his subordinates of approving land prices against regulations, causing a loss of more than 300 billion VND to the state budget.

The story began in 1993, when Regent International OverSeas Corp (Hong Kong) was approved by the Government to invest in the Phan Thiet golf course project with a scale of 62 hectares under a 50-year land lease. In September 2013, the company transferred all its capital to Rang Dong Joint Stock Company for 2.5 million USD. Just two months later, Mr. Le Tien Phuong, then Chairman of Binh Thuan Provincial People's Committee, signed a decision to grant Rang Dong a certificate to inherit all the rights and obligations of the old investor.

However, after receiving the license, Rang Dong requested the provincial government to change the land use purpose from golf course to urban residential land. This was the turning point that led to serious violations. Mr. Phuong organized a meeting at the Provincial People's Committee and then signed an official dispatch to report to the Provincial Party Committee Standing Committee, requesting consideration of the policy of changing the land use purpose according to the enterprise's request.

The Supreme People's Procuracy has determined that the case involving Mr. Le Tien Phuong is particularly serious, occurring in the field of state management of land in Binh Thuan. As the head of the Provincial People's Committee and the Land Valuation Council, Mr. Phuong directed the entire process of implementing the Phan Thiet coastal urban tourism project. The indictment clearly stated that Mr. Phuong knew clearly about the detailed planning project and land use structure but still allowed violations to occur.

Along with Mr. Phuong, 13 former leaders of Binh Thuan departments were accused of "intentionally violating" their assigned duties in the process of developing and appraising land price plans. Specifically, Mr. Phuong agreed with the consulting results and land price plans developed by the provincial Department of Natural Resources and Environment, which used comparable assets that did not meet the conditions and were not based on detailed planning.

The crux of the case lies in the approval of land prices at the project. Mr. Le Tien Phuong signed the decision to approve the land price at 2.577 million VND/m2, contrary to the regulations and instructions of the Standing Committee of Binh Thuan Provincial Party Committee.

The People's Procuracy alleged that the illegal approval of land prices for more than 10 hectares of land for high-rise planning caused a loss of more than VND154 billion. Similarly, the illegal valuation of more than 25 hectares of low-rise land also caused an additional loss of VND154 billion. In total, the violations of Mr. Le Tien Phuong and his subordinates caused a loss of about VND308 billion to the state budget.

After the investigation and trial, the Hanoi People's Procuracy announced the indictment and proposed sentences for 17 defendants in the case. Mr. Le Tien Phuong, who was determined to have played the highest role in the case, was proposed a sentence of 6-7 years in prison. Other defendants were also proposed different sentences, depending on the level of violation and role in the case.

The proposed sentence was made by the People's Procuracy after carefully considering the context, causes and conditions of each defendant's crime.

The case of former Binh Thuan Chairman Le Tien Phuong and his subordinates is not only a criminal case but also a lesson in land management. It shows loopholes in the project approval process, land valuation and the lack of responsibility of some officials that have caused serious economic and social consequences.

The case is also a warning to authorities at all levels and officials and civil servants to strictly comply with legal regulations in the management and use of public assets, avoiding loss and waste of the state budget. The trial of this case has received special attention from the public, demonstrating expectations for a transparent, effective and responsible management environment.

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