On 24/9, the Appeals Tribunal of the High People's Court in Ho Chi Minh City conducted an online trial, accepting appeals for reduced sentences from four former leaders and employees of Can Tho Industrial Park Infrastructure Construction Joint Stock Company (CIPCO).

Tran Van Phuc, former CIPCO CEO, received a 12-year sentence for abusing his position to appropriate assets and one year for abusing his position while performing official duties. His combined sentence totals 13 years, reduced from 16 years at first instance.

Truong Van Tien's sentence was reduced by two years to 11 years, and Tran Ngoc Trung's by one year to six years, both for abusing their positions to appropriate assets.

Dang Minh Thua, former Deputy Director of SCIC's Southern Branch and Chairman of CIPCO's Board of Directors, received a sentence equivalent to his pre-trial detention period (reduced from four years at first instance) for abusing his position while performing official duties.

The court noted that all four individuals had good personal records, made full restitution, and received requests for leniency from the victims. Thua's ongoing treatment for a terminal illness was an additional mitigating factor.

This case led to disciplinary action against the former Can Tho City Party Secretary and former Chairman of the Can Tho City People's Committee during late 2023 and early 2024.

Defendant Tran Van Phuc (center) and his accomplices at the first-instance trial on 25/3. Photo: An Binh

Off-Contract Payments Uncovered

According to court records, CIPCO, a subsidiary of the State Capital Investment Corporation (SCIC), is the investor for the Tra Noc one and two industrial parks. These parks span nearly 300 hectares along the Hau River, adjacent to National Highway 91.

In 2023, Nam My Seafood Services Company was asked to return a technical corridor area it was using as a parking lot. Tran Ngoc Trung, representing CIPCO, then negotiated to lease the area back to the company for 150 million VND annually.

On 9/11/2023, a company representative handed 150 million VND in cash to Trung. This amount was then transferred to Tien, and subsequently to Phuc. Investigations confirmed Phuc kept 100 million VND, while Tien received 50 million VND.

This transaction lacked a contract, invoice, or financial accounting. After the allegations surfaced, the individuals involved returned the money, created false documents, and backdated them.

In early 2024, Song Trang Seafood Company transferred its factory in Tra Noc two Industrial Park to Van Vinh Seafood Company. The two businesses contacted CIPCO to renegotiate the land lease contract and inherit the seller's obligations.

Trung quoted a rental price of $4 USD per square meter annually, payable yearly. He later informed them that "leaders required" the contract to only show $3 USD, with an additional $1 USD per square meter per year for the first two years to be paid outside the contract, totaling 942 million VND.

Representatives from both companies proposed reducing the off-contract amount to 500 million VND, but Phuc refused. Tien and Trung allegedly pressured them, demanding full payment. The money was transferred through multiple personal accounts; part of it was used for internal expense reimbursements, and the remainder was appropriated.

"$40,000 Gift" to Can Tho Leaders

During an expanded investigation, Can Tho City Police determined that CIPCO leaders also instructed the use of company funds to give gifts and money to the City Party Secretary, Chairman of the Can Tho City People's Committee, and other officials. This was done to seek their support for potential investment in the Co Do - Thoi Lai Industrial Park.

In 2023, SCIC approved CIPCO's proposal to explore investment in this project. However, the Can Tho City People's Committee later approved another enterprise to conduct the research.

To access the project, Thua and Phuc discussed and agreed to prepare gifts and money to approach city leaders.

The total amount used for gifts was $45,000 USD, along with various other items. The City Party Secretary and Chairman of the Can Tho City People's Committee at the time each received $20,000 USD. Subsequently, the city's People's Committee issued a document approving CIPCO to research, survey, and establish investment procedures for the project. The funds have since been returned to the authorities.

The indictment states that Thua and Phuc abused their positions and authority, instructing employees to use CIPCO funds for gifts and unauthorized operational expenses totaling 2.1 billion VND. Before the incident was discovered, 1.55 billion VND had been returned to mitigate damages.

Authorities determined that their actions served the organization's narrow interests and promoted personal authority, violating official duties and causing 550 million VND in damages to CIPCO.

Regarding the leaders who received the money and gifts, authorities found no promises were made during interactions, nor any actions taken or not taken to fulfill corporate requests for personal gain. The relevant documents were issued within their functions and duties, complying with legal regulations.

Therefore, authorities concluded there was insufficient evidence to constitute bribery. The individuals involved faced disciplinary action from the Party and government.

An Binh