Disgraced boss breathes life into Rusalka resort

Rusalka resort in central Nha Trang Bay - illustration photo

Chi, ex-chairman of Rus-Invest-Tur Corporation, the Rusalka resort’s original developer, recently sent a proposal to Khanh Hoa People’s Committee to seek approval to transfer all of his stake in Rusalka resort to a group of people, including his younger brother, who planned to set up a company to revive the project.

The proposal, if approved, would kick-start the Rusalka project which has been on hold since 2005 because of criminal proceedings relating to Chi’s activities.

Tran Hoa Nam, deputy director of the provincial Department of Planning and Investment, confirmed the proposal had been received, but said the provincial authorities would ask the prime minister for direction before making a final decision.

“This is a really complicated case,” said Nam.

Rusalka resort was licenced in 2002 with a total registered capital of $15 million. However, project construction was halted in 2005 when Chi was accused of not having paid $5.7 million for buying 31,400 tonnes of rice from Tra Vinh Food Company.

The police investigation also found that Chi had forged signatures and documents to obtain the licence for the Rusalka project.

One year later, the police distrained Rus-Invest-Tur Corporation’s assets while the Ministry of Planning and Investment revoked the project’s licence. In 2008, Chi was sentenced to five and a half years in prison.

Last year, the People’s Supreme Court announced the removal of the distrainment after Chi’s release, thus returning property ownership to him.

“The property now belongs to Chi, but if he wants to pursue the project, he must establish a new legal entity or transfer it to other partners,” said Nam.

However, Nam said the provincial authorities wanted to learn more about the financial ability of the people who would take over the development of the Rusalka resort. Covering a coastal area of 43.8 hectares, the resort is situated in Vinh Hoa commune,  one of the most beautiful spots in Nha Trang Bay.

When Chi received a licence in 2002, he  said the project would comprise a five-star hotel, a nine-hole golf course, an international convention and 50 villas.

Before the distrainment took effect in 2006, the Ministry of Finance valued the facilities already built at the project at about VND131 billion, or $6.3 million at the current exchange rate.