Director of Hoang Dan Investment and Construction Co. sentenced to 14 years for bid-rigging, bribery and accounting violations

On the afternoon of April 7, the Hanoi People’s Court announced sentences for 23 defendants in the case involving the Management Boards and Construction of Irrigation Works (the former Ministry of Agriculture and Rural Development, now reorganized), Hoang Dan Investment and Construction Company Limited (Hoang Dan Co., Ltd) and other units.

Sentences for key defendants

According to the court’s verdict, defendant Nguyen Van Dan, director of Hoang Dan Company, received a total prison term of 14 years, comprising 3 years for Violation of accounting regulations causing serious consequences; 9 years for Violation of bidding regulations causing serious consequences; and 2 years for Bribery.

Five defendants from the former Ministry of Agriculture and Rural Development, who were charged with Receiving bribes, were sentenced as follows: Hoang Van Thang (former Deputy Minister) to 4 years; Tran To Nghị (former acting head of the Construction Management Department) to 6 years; Nguyen Hai Thanh (former Deputy Director of the Construction Management Department and head of Division 4) to 5 years; Tran Van Lăng (former Director of Division 2) to 13 years; and Le Van Hiến (former Director of Division 8) to 3 years 6 months.

Court’s reasoning and mitigating factors

The court said the defendants’ actions infringed on the state’s economic management order in bidding activities and caused substantial damage, adding that the conduct generated public concern and required stern, proportionate punishment.

At the same time, the court considered mitigating circumstances including some defendants’ good personal records, sincere confessions, and active cooperation with investigators. It also noted that some defendants had notable professional achievements in their careers.

The court further stated that Nguyen Van Dan proactively exposed bribery acts of other defendants in the case from the investigation stage.

Recovery of bribe-related funds and civil liability

The court ordered the state to recover the funds the defendants had given and received as bribes. It noted that the defendants’ families paid more than 30 billion VND in total.

In addition, the court determined that the damages caused by the defendants were over 350 billion VND. It stated that the Management Boards and Construction of Irrigation Works were not the direct victims, because winning bids did not exceed the budget and there was no documentation proving inflated invoices or improper payments. The court said the damages arose from losses of state assets and should be compensated to the investor.

On civil liability, the court found that Nguyen Van Dan, as the head of the enterprise, bore the highest responsibility for the company’s operations. It said he took part in the offenses and must bear responsibility for the consequences.

The court accepted the request from the defendants’ families to use 175 gold bars to remedy the consequences, with the value converted at the time of enforcement. After offsetting amounts already remedied, the court ordered Nguyen Van Dan to pay more than 269 billion VND to the investor.

Accusations and alleged losses

According to the accusation, Nguyen Van Dan bribed more than 40.2 billion VND to win bidding on Package 13 and 17 of the Krông Pắk Thượng project (Dak Lak); Package 36 of the Ban Mong project (Nghe An); Package 21 of the Ban Lai project (Lang Son); and Package 17 of the Can Tang project (Hoa Binh). The court said the bidding violations caused losses to the state amounting to over 251 billion VND.

In addition, during construction and operation, Nguyen Van Dan directed Bui Cao Nguyên (finance chief) and Vu Thi Kim Liên (chief accountant) to establish seven subsidiary companies within the ecosystem and to set up and use two accounting systems, resulting in state asset losses of over 99 billion VND.

Charges involving other defendants

Fourteen defendants were charged with Violation of bidding regulations causing serious consequences, including: Ta Van Thuyết (former director, Ban 1); Nguyen Van Thuat (former Head of Planning and Appraisal, Ban 1); Pham Dong Phuong (former director, Ban 2); Hoang Xuan Thinh (former director, Ban 4); Nguyen Vinh Hoang (former Head of Planning and Appraisal, Ban 4); Duong Chi Thanh (former official, Ban 4); Mai Quang Vuong (former director, Ban 8); Tran Van Nhi (Head of Planning and Appraisal, Ban 8); Nguyen Dac Diep (former Deputy General Director, Song Da); Vu Van Hoa (Head of Bidding Department, Song Da 5); Le Vũ Hung (former General Director, Water Resources Company 4); Le Quang The (former Chairman of the Board of Water Resources Company 4); Vo Duy Minh (Director of the Central Region branch, Water Resources Company 4); and Vu Dinh Thinh (Deputy Director, Hoang Dan).

Three defendants were charged with Violation of accounting regulations causing serious consequences: Bui Cao Nguyên (finance head); Vu Thi Kim Liên (chief accountant, both Hoang Dan); and Nguyen Van Giap (former director, Song Vang HG).

Further proceedings

Director of Hoang Dan Company was recommended a sentence of 13–16 years. The director also requested using 175 gold bars to remedy the consequences.

The case remains under further judicial proceedings regarding the director of Hoang Dan Company and accomplices.