Defendants at the trial in HCM City on Tuesday. — VNA/VNS Photo

HCM CITY — The HCM City People’s Court on Tuesday (April 7) opened a first-instance trial against 22 defendants over alleged violations in the transfer of a State-owned land plot, with prosecutors saying the case caused losses of more than VNĐ542 billion (US$20.6 million).

Among the defendants is Nguyễn Thị Như Loan, 66, former chairwoman and chief executive of Quốc Cường Gia Lai, who, along with 11 others, is charged with violating regulations on the management and use of State assets, causing losses and waste.

Lê Quang Thung, 80, former acting chairman and general director of the Vietnam Rubber Group, faces additional charges of allegedly receiving bribes in connection with the case.

Other defendants are accused of bribery, abuse of power while performing official duties, and negligence causing serious consequences.

A former director of the municipal Department of Finance, Đào Thị Hương Lan, is being tried in absentia and is currently wanted.

According to the indictment, the more than 6,200sq.m site at 39-39B Bến Vân Đồn, a State asset managed by units under Vietnam Rubber Group, was transferred to private parties without required valuation or public auction, in violation of regulations.

Prosecutors allege that Thung abused his position to facilitate the transfer in exchange for a $3 million kickback, structured through cash payments and preferential access to apartments linked to the project.

Investigators said he instructed subordinates to complete procedures for capital contributions and subsequently transfer stakes in a project company to private investors without auction, including signing documents that did not reflect actual transactions.

The case also involves allegations that intermediaries paid bribes to certain officials to obtain approvals related to the land transfer.

Loan is accused of knowingly participating by providing funds to intermediaries and later acquiring the project through a capital transfer valued at more than VNĐ460 billion.

She subsequently transferred the project to another real estate firm for over VNĐ846 billion, gaining alleged illicit profits of more than VNĐ297 billion, according to prosecutors.

Authorities said the defendants’ actions resulted in total losses to the State exceeding VNĐ542 billion.

The court has summoned representatives from central and local agencies, along with dozens of organisations and individuals with related rights and obligations, to attend the proceedings.

The trial is expected to run until Friday (April 10). — VNS