Ho Chi Minh City police concluded their investigation on July 8th, recommending charges against Phuong, 54, and Dinh Viet Cuong (former deputy head of the Mieu Noi apartment management board in the former Binh Thanh district). The case file has been transferred to the People's Procuracy for prosecution on charges of embezzlement and abuse of power.
Nguyen Thi Dao (deputy head) and Ton Ngoc Bach (member) of the management board also face charges of abuse of power.
Phan Duong Dai, Le Van Binh, and Nguyen Phuoc Nguyen have been accused of embezzlement.
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Defendant Pham Phuong (right) listening to the police reading the arrest warrant. Photo provided by the police |
Defendant Pham Phuong (right) listening to the police reading the arrest warrant. Photo provided by the police
The investigation alleges that from 2018 to 2023, Phuong and three other members of the management board engaged in numerous financial violations, resulting in significant losses for residents.
The investigation revealed that the group initiated unauthorized repairs to internal roads, incurring a 15 million VND fine. They subsequently used resident funds to pay the fine instead of authorized budget funds.
Several common areas of the apartment building, owned by residents, were leased out illegally and later reclaimed by authorities. When the lessees demanded compensation, Phuong and the board used 50 million VND from resident funds to settle the claims.
In 2018, Phuong, representing the management board, signed a contract with a company directed by Nguyen Phuoc Nguyen to install a smart parking system. Despite no work being done, Phuong instructed Dao to disburse 263 million VND.
That same year, Phuong contracted Nguyen's company to install 139 security cameras for 626 million VND, though 640 million VND was actually paid. Both parties agreed to forgo value-added tax (VAT) invoices.
In June 2023, residents filed complaints about the board’s financial mismanagement. To obstruct the investigation, Phuong and Nguyen destroyed contracts, acceptance records, and liquidation documents from 2018, creating new documents backdated to 2023. They altered technical specifications of cameras and recording equipment in an attempt to legitimize the paperwork.
Their goal was to issue a 62 million VND VAT invoice for the investigators. This amount was also deducted from resident-paid elevator fees.
Phuong also contracted Phan Duong Dai, director of Dai Tien Company, to install three elevators in units B2 and C. After receiving 813 million VND, Dai only installed two. Phuong then directed Dao to use 246 million VND of resident funds to purchase parts and hire workers to install the third elevator.
The investigation concluded that the abuse of power by the accused resulted in over 637 million VND in losses for Mieu Noi residents.
Phuong is also accused of colluding with Dai to inflate costs and substitute cheap elevator parts for embezzlement.
Specifically, in 2018, Phuong signed a 1 billion VND contract with Dai for one elevator. They agreed to use cheaper parts from China and Thailand, costing only 800 million VND. Dai gave the 200 million VND difference in cash and transfers to Phuong and Cuong (100 million VND each).
In 2019, Phuong signed another contract with Dai for three elevators in units B2 and C, worth 2.1 billion VND. They inflated the contract by 600 million VND to 2.7 billion VND. Despite only two elevators being installed, Phuong directed the board to pay the full amount to pocket the difference.
Dai transferred 97 million VND to Phuong and kept the remaining 503 million VND.
Other items like emergency lights, surveillance televisions, and stairway lights were also falsely invoiced. The total embezzled amount is estimated at over 1.2 billion VND. Phuong is identified as the mastermind, having committed multiple offenses and profited the most.
Quoc Thang
