On the afternoon of 6/7, following a week of proceedings, the Central Military Court was expected to announce the appellate verdict in the case concerning the illegal allocation of 63 hectares of defense land at Nha Trang airport to Phuc Son Group.

At the start of the session, the trial panel announced that during the three-day deliberation recess, the head of Phuc Son had reached the aforementioned agreement with 61 victims – individuals who purchased land on the Nha Trang coastline.

The procuracy, therefore, proposed recording this amount to be deducted from Hau's compensation obligations. Due to this new development, the court extended the deliberation period until 5 p.m. today.

The case originated in 2015, when the former Nha Trang airport area, spanning over 238 hectares and managed by the Air Force Officer Training School, was approved by the government for transfer to Khanh Hoa province for economic, urban, and service project development. Subsequently, the province assigned Phuc Son Company as the investor without competitive bidding.

Despite not having completed legal procedures, the company subdivided the land, signed nearly 1,000 transfer contracts, and collected over 7,000 billion dong.

Consequently, the appellate hearing primarily revolved around compensation negotiations between Hau and the victims. These individuals requested the court to recognize the transactions and accept additional payments to Khanh Hoa province to receive their land.

Chairman of Phuc Son Group Nguyen Van Hau at court. Photo: Danh Lam

Hau committed to complying with the verdict. If required to pay compensation, he pledged to repay all 7,000 billion dong within 90 days. Should the project continue, Hau committed to accompanying investors and promised three times the compensation if land was not delivered.

The procuracy stated that special mechanisms issued by the National Assembly to resolve difficulties could not be applied, as the case had become a criminal fraud case with exceptionally severe consequences, affecting not only the local economy and people but also the political and social situation.

The case also implicated two former major generals.

Nguyen Duy Cuong, former principal of the Air Force Officer Training School, and Hoang Viet Quang, former deputy director of the Operations Department, Ministry of National Defense, were found to have committed numerous violations during the land allocation process and subsequently received money. Both were sentenced in the first-instance trial to two years and six months in prison for violating land management regulations.

They described the case as "a tragic accident in their military careers," appealed for leniency, offered additional payments, and the procuracy recommended converting their sentences to suspended sentences. In their final statements, they expressed their wish "to be free to witness Nha Trang's renewal" and "to educate their children and grandchildren about law observance."

For Nguyen Thi Hang, Hau "Phao's" sister and deputy general director of Phuc Son Group, her son paid an additional 5 billion dong. She also committed to using 6 properties under her name, 33 gold pieces, and 10 bank accounts to compensate for the damages.

Tran Huu Dinh, Hau "Phao's" friend and director of Nam A Investment Joint Stock Company, had his wife pay 48 billion dong – the entire illicit profit. Both were prosecuted for property appropriation fraud, assisting Hau in appropriating 7,000 billion dong from land buyers. The procuracy also recommended reducing their sentences by 18-24 months.

Defendant Hau did not request leniency and is currently serving a total sentence of 30 years in another case, related to previously tried charges. This includes a case involving former Vinh Phuc Party Secretary Hoang Thi Thuy Lan.

Thanh Lam