In recent days, Mr. Nguyen Quoc Cuong, commonly known as Cuong “Do La,” has been the focus of many rumors about his possible legal action. Mr. Cuong has served as a member of the Board of Directors, deputy general director, and information publicizer at Quoc Cuong Gia Lai Company (QCG) for more than a decade. He was directly involved in improper land transactions that led to the arrest of his mother, Ms. Nguyen Thi Nhu Loan, the Company’s Chairwoman. These rumors are raising concerns that Mr. Cuong may face jail time.
According to VNExpress, Quoc Cuong Gia Lai Company issued a statement on July 22, affirming that the business is still operating normally. They pledged to soon find a replacement to run the company after Ms. Nguyen Thi Nhu Loan, 64 years old, general director of QCG, was prosecuted and detained three days ago to serve the investigation of the crime of “violating regulations on management and use of state assets causing loss and waste.”
Many QCG stock investors are worried about the company’s future, especially as Nguyen Quoc Cuong, a prominent former leader and son of Nhu Loan, may be arrested for his involvement in the “golden” land transactions in Saigon. Cuong joined QCG in 2006 and held many important positions until November 2018, when he suddenly resigned from all positions just one day after the Central Inspection Commission of the Communist Party of Vietnam issued a press release at its 31st session. The release was related to the inspection of signs of violations by Tat Thanh Cang, member of the Party Central Committee and standing deputy secretary of the Ho Chi Minh City Party Committee.
The transfer of the “golden” land plots took place between 2009 and 2017, in which Ms. Nhu Loan was accused of violating the law related to the 39-39B Ben Van Don project, Ward 12, District 4. This project originated from state ownership and took place at the Vietnam Rubber Group and Dong Nai Rubber Company. QCG spent VND465 billion (US$18.3 million) to buy the capital of Phu Viet Tin Company and then resold it to two legal entities and an individual, earning a profit of VND382 billion (US$15 million).
Investors are now concerned about the role of Mr. Nguyen Quoc Cuong and are concerned that he may be arrested. Mr. Cuong left QCG at a time when the company was in turmoil, including the sale of “golden” cheap land involving Mr. Tat Thanh Cang. In December 2018, Mr. Tat Thanh Cang was disciplined and removed from all positions for “very serious shortcomings and violations,” and was subsequently arrested, prosecuted and sentenced.
In addition to the 39-39B Ben Van Don land plot, QCG also has the 32-hectare Phuoc Kien project. Tan Thuan Company under the Ho Chi Minh City Party Committee Office designated to sell more than 30 hectares of compensated land in Phuoc Kien residential area, Nha Be district to QCG at a price of only VND1.29 million (USD51)/square meter. This project was later revoked and the leaders of Tan Thuan Company were disciplined and arrested.
During the trading session on July 22, VNExpress reported that QCG shares matched less than 60,000 orders. By the end of the session, over 6 million shares were listed for sale at the floor price in a “blank buy” situation. QCG shares fell nearly 7%, down to VND8,440 (33 cents) per share. This was the second consecutive decline after Ms. Nguyen Thi Nhu Loan was arrested.