On 24/6, the Hanoi People's Court opened a 10-day trial for 41 defendants in a case involving Phuoc Son Corporation and violations across 14 projects in Vinh Phuc, Phu Tho, and Quang Ngai provinces spanning 15 years (2010-2024).

Nguyen Van Hau (also known as Hau "Phao"), chairman of Phuoc Son Corporation, is the only defendant charged with three counts: bribery, accounting violations with serious consequences, and bidding violations with serious consequences.

Phuoc Son Corporation chairman Hau "Phao" at the investigation agency. Photo: *Ministry of Public Security*

Also on trial are 30 former officials from Vinh Phuc, Phu Tho, and Quang Ngai provinces; 9 Phuoc Son employees; and a real estate exchange director. They are charged with various offenses including accepting bribes, abusing their positions and power, violating bidding regulations with serious consequences, violating accounting regulations with serious consequences, and exploiting influence over officials for personal gain.

> List of 41 defendants

The Supreme People's Procuracy considers this a "particularly serious" case, causing a loss of 1,168 billion VND to the state. Hau "Phao" established Phuoc Son Corporation in Vinh Phuc in 2004 at the age of 23. By 27, he had secured Phuoc Son's involvement in several major projects across multiple localities.

Hau's primary focus was Vinh Phuc, where he secured 14 projects and contract packages. The Procuracy identified violations in 8 of these.

Hau carried substantial amounts of cash for bribes. The indictment states that from 2010 to 2020, Phuoc Son was approved as the investor for four large projects in Vinh Tuong district: a wholesale market project covering 188 hectares; the Tu Trung new urban area covering 29 hectares; the Phuoc Son 1 commercial center and housing project spanning over 15 hectares; and Phuoc Son 2 covering over 114 hectares. The total area of these four projects is 347 hectares, equivalent to 2.4% of the district's total area (144 km2).

By 2016, the wholesale market project had stalled and faced revocation. Hau, then 35, sought help from provincial Party Secretary Hoang Thi Thuy Lan. Lan facilitated his cause by speaking to Provincial Chairman Le Duy Thanh and Department of Construction Director Pham Hoang Anh, urging them to support the project's continuation.

However, the project encountered opposition from the Ministry of Construction due to incomplete documentation and a lack of residential land allocation in the project plan. The provincial Departments of Finance, Natural Resources and Environment, and Finance expressed similar concerns.

With the backing of Lan, Thanh, and Hoang Anh, Phuoc Son not only received an extension but also had its planning and housing density adjusted.

Former Vinh Phuc Provincial Party Secretary Hoang Thi Thuy Lan is accused of receiving the largest bribe in the case, 25 billion VND and 1 million USD. Photo: *Xuan Hoa*

After securing the land, Hau sought to reduce land use fees by approaching Nguyen Van Khuoc, Director of the Department of Finance. Khuoc connected him with his deputies, Hoang Van Nhiem and Chu Quoc Hai (Deputy Director of the Department of Natural Resources and Environment). These three officials collaborated to assist Hau.

The land use rights for 5.4 hectares of commercial residential land were initially valued at over 708 billion VND, but Hau aimed lower. Thanks to Khuoc, Nhiem, and Hai, the price was reduced to 507 billion VND.

As a result, Phuoc Son saved the project from revocation, profiting 200 billion VND from reduced land use fees. The province approved the transfer and sale of 854 land plots and 27 houses.

By 2022, through Nam A Company's real estate exchange, directed by Tran Huu Dinh, Hau sold 1,317 plots and earned over 3,500 billion VND. Hau and his subordinates concealed over 2,000 billion VND of this revenue through falsified records and a dual accounting system, causing a tax loss of over 504 billion VND to the state, according to the indictment.

Phuoc Son's substantial profits and fraudulent activities in these projects were largely facilitated by certain provincial officials who responded favorably to Hau's requests. In return, Hau delivered suitcases of cash to their offices and homes on 24 occasions.

Party Secretary Hoang Thi Thuy Lan received the most, totaling 25 billion VND and 1 million USD. At the highest denomination, the cash she received could have weighed up to 60 kg.

Provincial Chairman Le Duy Thanh received 20 billion VND and 1.3 million USD, equivalent to approximately 56 kg of cash at the highest denomination.

Dang Van Minh is accused of receiving 11.4 billion VND in bribes, the third highest amount among former officials. Photo: *Pham Linh*

District leaders received money, helping Hau "Phao" manipulate projects. Hau "Phao" not only monopolized billion-dong projects in Vinh Tuong but also used money and connections to fraudulently win four public investment packages in the district, totaling over 1,200 billion VND. Two contracts for the Red River left dike upgrade project, valued at 1,092 billion VND, were secured by Hau when he was just 29.

In 2010, Hau's influence allowed him to attend a district meeting about the dike repair project, hosted by Vinh Tuong District Chairman Bui Minh Hong. Due to the project's importance and substantial investment, the district held an open bidding process.

Recognizing Phuoc Son's lack of qualifications to win through open bidding, Hau sought assistance from Pham Van Vong, Provincial Party Secretary, and Phung Quang Hung, Provincial Chairman, requesting direct appointment. Once again, Hau succeeded.

In response to Vinh Phuc's proposal, the government stipulated that direct appointment should only apply to urgent cases of dike erosion. Reports from the Department of Agriculture and Rural Development at the time indicated that Vinh Phuc's dikes were "normal."

However, to facilitate Phuoc Son's appointment, Vinh Tuong district instructed relevant units to fabricate reports claiming the dikes were "damaged and in urgent need of repair," according to the indictment.

In 11/2011, the project was approved by the Provincial Party and assigned to Phuoc Son. Dam Huu Tuan, head of Vinh Tuong District's Project Management Board, even leaked contract information and estimates to Hau to legitimize his capacity.

Upon receiving the project, Hau subcontracted it to five contractors and eleven material suppliers, demanding kickbacks from provincial payments, totaling 29 billion VND in losses to the state.

Using the same tactic of bribing officials, Hau "Phao" secured two more contracts for the inner-city road project and the construction of a dance college, both in Vinh Tuong district, causing over 8 billion VND in losses to the state.

The Procuracy determined that Hau spent 4.9 billion VND and 30,000 USD on officials for these four contracts.

Agreeing to a 5% cut to win the bid. At the same time as the Vinh Phuc projects, Hau's reputation reached Quang Ngai. In late 2011, a delegation of provincial leaders, including the chairman, vice chairman, and department directors, dined at Hau's Vinh Phuc residence during a trip to Hanoi.

The following year, when the province initiated the Nam Song Tra Khuc road project, Hau was their first choice. In 3/2012, Hau presented 20,000 USD to Provincial Chairman Cao Khoa.

In 4/2012, after the project was assigned to the Department of Transport, Khoa instructed director Dang Van Minh to facilitate Hau's involvement.

Nguyen Doan Khanh. Photo: *Noi Chinh*

Following these instructions, when Quang Ngai opened the bidding process in November of that year, Minh leaked information and contract estimates to Hau, ensuring his success.

Hau falsified company qualifications and used three companies as bidders. Phuoc Son won the bid and received 620 billion VND from Quang Ngai province.

As agreed, Hau allocated 5% to thank the provincial leaders. The Procuracy determined that Hau gave Minh a total of 22 billion VND and 200,000 USD to distribute among provincial leaders.

Two years later, Quang Ngai initiated a National Highway 1 upgrade project. Minh proactively approached Hau and suggested his involvement, despite knowing Phuoc Son lacked the necessary financial and technical capabilities. For this 280 billion VND project, Hau gave Minh 600 million VND and 40,000 USD. Minh exchanged the foreign currency for VND and built eight charity houses.

In Phu Tho, the Procuracy established that in 2008, Hau approached Nguyen Tien Khoi, director of the Hung Kings Temple historical site, seeking contracts for the festival center project. Khoi introduced Hau to Provincial Party Secretary Ngo Duc Vuong and Provincial Chairman Nguyen Doan Khanh. Once again, Hau received support.

The project management treated Hau favorably, providing him with blueprints and designs. Meanwhile, Hau instructed his staff to falsify qualifications and financial reports. As a result, Hau's company won three contracts totaling 265 billion VND but subcontracted them, demanding kickbacks exceeding 33 billion VND.

The final violation occurred in 2011, during a forest fire prevention water supply project for the Hung Kings Temple, when Khanh had become Provincial Party Secretary. Following the established pattern, Hau won the 105 billion VND contract, subcontracted it, and received 22 billion VND in kickbacks.

The Procuracy determined that in Phu Tho, Hau won four contracts totaling 370 billion VND, causing 55 billion VND in losses to the state. Hau paid 3.8 billion VND to officials involved.

The total amount Hau is accused of paying in bribes is over 132 billion VND, which could weigh 264 kg in 500,000 VND bills.

During the investigation and prosecution, the Procuracy recovered 41 billion VND, 534 taels of SJC gold, and over 1.1 million USD. The defendants and related individuals paid over 188 billion VND and 900,000 USD in restitution.

Authorities seized 1,440 properties, including 1,419 belonging to Hau, and froze 43 bank accounts with a total balance of 256 billion VND.

Several former officials returned illicit gains, including former Vinh Phuc Chairman Le Duy Thanh, who returned 25.5 billion VND and 1.63 million USD, exceeding the 20 billion VND and 1.3 million USD he was accused of receiving.

Former Vinh Phuc Party Secretary Hoang Thi Thuy Lan returned 20 billion VND, and former Deputy Secretary Pham Hoang Anh returned 18 billion VND, despite being accused of receiving only 853 million VND in bribes. Hau also paid over 84 billion VND. These are currently the defendants with the highest restitution payments.

The former officials' service records, revolutionary family backgrounds, age, and health issues were considered mitigating factors by the prosecution.

Thanh Lam - Pham Du