HA NOI (Biz Hub) — The Police Investigations Department for Economic Crimes under the Ministry of Public Security prosecuted Nguyen Van Tuan, former general director and chairman of the management board of the Ha Noi Import, Export and Construction Investment and Development one-member limited company on Monday.

The B5 Cau Dien tenement house project has been frozen since 2010. The police temporarily imprisoned former general director of Ha Noi construction company to investigate his involvement with the project. Photo baodautu.vn

He is also temporarily imprisoned for four months so that the police can investigate his involvement with the B5 Cau Dien tenement house project in Tu Liem District's Cau Dien Town in the capital city.

The project, with a total investment of VND1,000 billion (US$47.6 million), is a joint venture between the company and the Housing Group.

It includes six 40-floor buildings with 2,000 apartments. The company contributed 40 per cent of the capital for the project's land area and the Housing Group was in charge of the remaining investment money.

During the implementation process, the joint venture signed capital investment agreements with hundreds of customers. Tuan alone signed contracts worth nearly VND200 billion (US$9.52 million) but did not carry out the project and used the money for other purposes.

Since 2010, the project has been frozen, causing concerns for capital contributors. Concerned about feasibility, customers sent letters denouncing the faults of the project to state agencies.

One year ago Tuan was required to step down from holding two positions in the company and was assigned as the head of the withdrawal liability section.

Talking with Thanh Nien Online newspaper, Housing Group general director Tran Van Thanh confirmed the information and said that the arrest of Tuan did not make any impact on Housing. He added that Tuan signed contracts to stabilise capital by himself.

The Ha Noi City People's Committee asked the Housing corporation to carry out the project and take responsibilities for capital contributors' rights. — VNS