On January 21, the Hanoi People’s Court sentenced Le Tien Phuong, former Chairman of the Binh Thuan Provincial People’s Committee, to six years in prison for violating regulations on the management and use of state property, causing waste and losses.

The charges stem from violations in the management of state assets in the Phan Thiet Coastal Urban Area project in Binh Thuan Province.

The court found that Phuong, who served as Chairman of the Provincial People’s Committee from 2010 to 2015 and as Chairman of the Provincial Land Valuation Council, failed to adhere to legal procedures in approving land prices. His actions resulted in a loss of more than 308 billion VND (approximately $13 million).

The court also sentenced several other former officials and associates for their roles in the case:

Nguyen Van Phong, former Deputy Director of the Department of Finance and Deputy Chairman of the Land Valuation Council: four years in prison.

Ho Lam, former Director of the Department of Natural Resources and Environment: five years in prison.

Xa Duong Thang, former Director of the Department of Construction: four years in prison.

Nguyen Xuan Phong, former Deputy Director of the Provincial Tax Department: 30 months in prison.

Do Ngoc Diep, former Chairman of the Phan Thiet City People’s Committee: 30 months in prison.

Other former officials and employees received sentences ranging from 15 months to 24 months, with some sentences suspended.

Court findings

The court concluded that the defendants, as leaders and valuation council members, failed to comply with state property management laws, resulting in significant financial losses.

Despite directives from the Provincial Party Committee to balance interests and reassess land valuation, the valuation council and consulting units failed to adjust their initial figures. Defendants across various roles ultimately approved the unlawful land valuation proposed by the consulting unit.

Le Tien Phuong then signed off on these valuations, violating state regulations and directives, and causing severe financial damage to public assets.

Mitigating factors and restitution

The court acknowledged mitigating circumstances for some defendants, including health issues and cooperation during the investigation.

In terms of restitution, the court confirmed that the defendants and Rang Dong Company had paid back the full amount of 308 billion VND.

The court ordered the money to be returned to the Binh Thuan Provincial People’s Committee for lawful management and use. Rang Dong Company has been allowed to continue the Phan Thiet project.

T. Nhung