On April 14, the Hanoi People’s Court opened the trial for violations related to state asset management and misuse, including serious negligence, which allegedly occurred within Vietnam Tea Corporation (Vinatea).

Eight individuals are being tried: Nguyen Thien Toan (former General Director of Vinatea); Dang Ngoc Cam; Nguyen Quoc Khanh; and Tran Thi Hoa (all former members of the Members' Council of Vinatea - LLC); Vu Ngoc Tu (former Chairman of the Members' Council of Vinatea); Banh Thuong Tri (former Director of the Ho Chi Minh City Branch of Vinatea - Saigon Tea Company); Dang Van Toi (former Chief Accountant of Vinatea - LLC); and Tran Hong Diep (former full-time Controller at Vinatea - LLC).

According to the indictment, Vinatea was assigned by the state to manage and use 11 real estate properties, including: 225 Nam Ky Khoi Nghia Street (Ho Chi Minh City), 25D Cat Linh (Hanoi), 126 Lach Tray and 341 Van My (Hai Phong), Co Loa warehouse (Dong Anh, Hanoi), land in Luong Son (Hoa Binh), 59 An Binh Street (District 5, Ho Chi Minh City), seedling and factory land in Chieng Di and Van Ho (Moc Chau, Son La), and land at Tran Khat Chan Street (Hanoi). Vietnam Forestry Corporation also managed a site at 67 Ngo Thi Nham (Hai Ba Trung District, Hanoi).

While managing these properties, the board of directors and management of Vinatea, along with related individuals, committed unlawful acts that caused state property losses.

Nguyen Thien Toan was identified as the mastermind who directed the borrowing and payment for 50-year land lease fees at 225 Nam Ky Khoi Nghia (Ho Chi Minh City) without including the property’s value in the enterprise’s valuation during Vinatea’s privatization.

He also signed resolutions and contracts to transfer land use rights of a 1,500 m² leased plot on Tran Khat Chan Street (Hanoi) for 30 years in a joint venture with Hotel Indochine Hanoi, and 11,635 m² of leased land on Che Huong Street (Hai Phong) to Nam Cuong Company, both without public auction.

These actions led to a state loss of more than 38 billion VND (USD 1.5 million).

Dang Van Toi, former chief accountant, was found to have failed to account for the land value at 225 Nam Ky Khoi Nghia in Vinatea's valuation during privatization, and did not record the value of transferred land in the joint ventures mentioned above. His failure also resulted in over 38 billion VND in losses.

As Members of the Board, Dang Ngoc Cam and Nguyen Quoc Khanh followed instructions from superiors, signing resolutions to borrow funds from GB TEA Company to pay land lease fees and resolutions on capital contribution and debt offset with GB TEA, without including these land assets in the company's valuation. Their actions caused a loss of over 16 billion VND (USD 650,000).

Regarding five properties, including Co Loa warehouse (Dong Anh, Hanoi), land in Luong Son (Hoa Binh), and several parcels in Chieng Di and Van Ho (Moc Chau, Son La), the board used these assets in capital contributions or divestments without public auctions, in violation of the law.

During the investigation, authorities requested property valuation, but the valuation councils in Hanoi, Hoa Binh, and Son La declined, citing lack of grounds. Consequently, investigators recommended the recovery of these properties.

For two disputed sites - 59 An Binh Street (District 5, Ho Chi Minh City) and 12 units on the ground floor at 67 Ngo Thi Nham Street (Hanoi) - the civil disputes are currently under review by the court, and will be resolved according to civil procedure laws.

T. Nhung