Quoc Cuong Gia Lai shares hit the floor after bad news

Stocks on the floor

At the end of the trading session this morning, July 19, QCG shares hit the floor at VND9,070/share, equivalent to a decrease of 6.97% with an outstanding sell volume of more than 2.7 million shares.

This development occurred when there was information that dozens of riot police, investigators from the Ministry of Public Security and representatives of the People's Procuracy went to the house of Ms. Nguyen Thi Nhu Loan - General Director of Quoc Cuong Gia Lai Company, on the morning of July 19. As reported by Lao Dong Newspaper, the Investigation Agency has not yet announced the content of the work at Ms. Loan's house.

However, this move was made in the process of expanding violations occurring at the Vietnam Rubber Industry Group, Dong Nai Rubber Company, Ba Ria Rubber Company, the Ministry of Natural Resources and Environment , and related units. Including violations at the land project 39-39B Ben Van Don, Ward 12, District 4, Ho Chi Minh City.

The land project at 39-39B Ben Van Don, Ward 12, District 4, Ho Chi Minh City with many violations related to public land. Photo: Anh Tu

Before becoming a large real estate project as it is today, the land plot 39-39B Ben Van Don had been transferred shares, bought and sold in a roundabout way, thereby "magically" turning public land into private land. The land plot 39-39B Ben Van Don, Ward 12, District 4, Ho Chi Minh City has an area of 6,202m2, originally managed by Dong Nai Rubber Corporation and Ba Ria Rubber Company under the Vietnam Rubber Industry Group.

On December 29, 2009, Dong Nai Rubber Corporation contributed 43.2 million VND (72%), Ba Ria Rubber Company contributed 16.8 million VND (28%) to establish Phu Viet Tin Company Limited (headquartered at 39-39B Ben Van Don).

On March 25, 2010, Ho Chi Minh City People's Committee issued Decision 1366/QD-UBND to reclaim and allocate land at 39-39B Ben Van Don to Phu Viet Tin Company Limited for investment and business according to the plan.

However, on September 10, 2014, Quoc Cuong Gia Lai Joint Stock Company bought back the capital contribution of Dong Nai Rubber Corporation and Ba Ria Rubber Company in Phu Viet Tin Company, with a price of only nearly 6 billion VND, Quoc Cuong Gia Lai accounted for 99.5% of the capital contribution in Phu Viet Tin Company.

After taking power, on November 14, 2014, Quoc Cuong Gia Lai Company transferred 0.5% of Phu Viet Tin's charter capital to Ms. Lai Thi Hoang Yen for 3 billion VND; transferred 40% of capital to Thinh Vuong Real Estate Joint Stock Company for over 340 billion VND, and 54% of capital to City Villa Joint Stock Company for over 459 billion VND.

On March 31, 2017, Phu Viet Tin Company Limited signed a merger contract with Phuc Nguyen Real Estate Investment and Development Company Limited to form Nova Phuc Nguyen Real Estate Investment and Development Company Limited (a subsidiary of Novaland Group). After that, Nova Phuc Nguyen Company started construction of a real estate project called The Tresor on the land plot 39-39B Ben Van Don.

Quoc Cuong Gia Lai once denied any involvement in wrongdoing.

At the end of May, in an explanation document sent to the State Securities Commission and the Ho Chi Minh City Stock Exchange regarding the 39-39B Ben Van Don project (District 4, Ho Chi Minh City), Ms. Nguyen Thi Nhu Loan - General Director of Quoc Cuong Gia Lai Company affirmed that Quoc Cuong Gia Lai is a bona fide buyer, not related to the Vietnam Rubber Group. In 2013, Quoc Cuong Gia Lai signed a contract promising to transfer and deposit to Viet Tin Investment and Trading Joint Stock Company, represented by Mr. Dang Phuoc Dua (referred to as Viet Tin Company) regarding the transfer of 100% of the capital contribution of Phu Viet Tin Limited Liability Company, the investor of the 39-39B Ben Van Don project.

The total cost of receiving the transfer of 100% of this capital contribution paid by Quoc Cuong Gia Lai according to the agreement with invoices and documents is 464.2 billion VND. Quoc Cuong Gia Lai has never worked or negotiated directly with Vietnam Rubber Group, Dong Nai Rubber Company and Ba Ria Rubber Company regarding the transfer of this capital contribution.

Regarding project implementation and capital transfer, Ms. Loan said that the 39-39B Van Don wharf project has a beautiful location, however, due to the financial plan focusing on the Phuoc Kieng project, it is impossible to invest in two projects at the same time, so the company must sell this project to reduce financial burden and avoid risks for the company and shareholders.

The project when transferred has sufficient legal status according to current regulations, and whether the previous project was auctioned or not is implemented by the Ho Chi Minh City government based on the legal regulations of each period. Quoc Cuong Gia Lai has fulfilled its tax declaration and payment obligations according to regulations and has been inspected and settled by the tax authority for many years.

Source: https://laodong.vn/kinh-doanh/co-phieu-quoc-cuong-gia-lai-nam-san-sau-khi-ro-tin-xau-1368650.ldo