Singaporean group suspected of bribing Hanoi officials

>> Vietnam sets up team to probe alleged $780k bribery

“We have just received a proposal from the Court of Appeals of the Supreme Court of Ho Chi Minh City requesting we look into allegations that the investor into the SingViet urban development project bribed Hanoi officials $2.8 million to ‘smoothen’ his project’s implementation,” said Vo Van Luan, head of Office of Ho Chi Minh City People’s Committee.

“This is a sensitive issue and requires further investigation. The city authorities are committed to finding the truth to ensure a healthy investment environment. The Central Internal Affairs Commission is stepping in to investigate,” he added.

According to Luan, licensing SingViet initially fell to Hanoi’s Ministry of Planning and Investment, but was later decentralised to the city’s authorities.

“I can confirm that our city is so focused on attracting foreign investment that there is no need to ‘smoothen’ procedures. We will get to the truth of this matter,” Luan asserted.

According to court documents, with the investment fund surpassing $300 million, SingViet urban development is a major sports, trade centre and residential complex.

In 2007 SingViet, comprised of Singaporean businesses and local partner Binh Chanh Construction JSC, was assigned as the project developer by the city authorities.

However, since receiving the investment certificate, little progress has been seen and local partner Binh Chanh has retreated from the JV leaving only the four Singaporean businesses.

In late 2011, the project got a revised investment certificate from Ho Chi Minh City People’s Committee once the project was transformed into wholly foreign-owned SingViet City Limited.

In December 2011, the city’s People’s Committee issued the project a second revised investment certificate which changed the company representative from a Singaporean to a Malaysian.

One of the members of the group of companies, St. Martin’s Properties (SMP) from Singapore then took legal action against the city’s Department of Planning and Investment and People’s Committee arguing that the revisions violated the law and were not agreed to by all the member companies.

The group then required the city’s People’s Court to abrogate the revised investment certificates and uphold the validity of the first. They also demanded both agencies pay $300 million in compensation.

The People’s Court rejected these supposed damages in July 2013. The plaintiff then appealed the decision. In October 2013, the court put a hold on the appeal as new evidence came to light.

It was proposed that the city authorities clarify suspicions that the developer had bribed Hanoi government agencies $2.8 million.

“If there is evidence of corruption, it will be turned over to investigators,” the court affirmed.