HCMC vice tax chief arrested in Thuduc House scam

Nguyen Thi Bich Hanh, deputy director of the Ho Chi Minh City Tax Department, was arrested Saturday for alleged violations in the Thu Duc Housing Development Corporation scandal.

Hanh was detained for investigation of breaching regulations on management and use of state assets, causing losses and waste per the Penal Code.

This is the latest development of an investigation by the Ministry of Public Security's investigative agency (C03) into the case of fraudulently appropriating property; abusing positions and power to appropriate property; illegally transporting currency across borders; manufacturing counterfeit goods; smuggling and receiving bribes that occurred in HCMC and some southern provinces involving the Thu Duc Housing Development Corporation (Thuduc House).

Previously, C03 had proposed to prosecute Nguyen Vu Bao Hoang, general director of Thuduc House, and 32 others on charges of appropriating more than VND538 billion ($21.68 million) of VAT from the state; illegally transporting more than $51 million abroad and over $22 million from abroad to Vietnam; smuggling goods worth VND2.8 billion ($113,000); accepting bribes of more than VND7.4 billion ($298,000); manufacturing and trading fake goods worth VND986 billion ($39.73 million).

The conclusion stated that, from 2016 to 2020, Trinh Tien Dung, who has fled, directed many people to set up "ghost" companies in Vietnam and abroad to take advantage of the state's policy that encourages enterprises to export electronic components with the tax rate of 0%.

The investigative agency alleged that Dung had hooked up with many officers of District 1, 3, and 5 tax departments; then together with Luu Thi Ngat, director of Khanh Hung Company, used the 16 "ghost" companies to issue false VAT invoices, legalizing inputs for Thuduc House, Southwest Saigon Company and Hoang Nam Anh Company to get VAT refunds.