It used to be a nursing hospital with state capital, but in just a short time, the land lot at 165 Thuy Van, with an area of more than 8,189 square meters, went into the hands of a real estate company with a “strange” auction. .
Loss of state land due to 60 billion VND loan
According to documents that the reporter Investment Newspaper obtained, in document No. 3816/ UB.VP signed by the Vice Chairman of the People’s Committee of Ba Ria – Vung Tau province at that time, Mr. Nguyen Van Nhan on November 6, 2000, agreeing to the proposal of the Provincial Department of Health to establish Vung Tau Travel Nursing and Medical Examination Center.
| It used to be the most modern tourist sanatorium in Vietnam, but within just a few years it had to be completely closed due to a 60 billion VND loan from Southern Bank. |
On June 10, 2002, the Provincial People’s Committee issued document No. 2158 UB.VP signed by Vice Chairman of the Provincial People’s Committee Ho Van Nien with the content of agreeing to allow the Provincial Tourism Company to contribute capital with existing assets, which is the area. Hotex land (address 165 Thuy Van) jointly established a LLC to invest in the Travel Nursing Center.
By November 18, 2002, in document No. 594/CV-DL issued by Ba Ria – Vung Tau Provincial Tourism Company (a Company under the People’s Committee of Ba Ria – Vung Tau Province) sent to the Provincial People’s Committee, Department of Land Administration, and Department of Construction. Ba Ria – Vung Tau Province Tourism Company called for investment capital and the Provincial People’s Committee allowed the Tourism Company to contribute capital with existing assets on Hotex land of VND 2,179 billion with An Co., Ltd. Duc established Vung Tau Tourism Nursing Company Limited.
Regarding the plan to use 8,240 m2 of Hotex area land that has been planned into Vung Tau Tourism Nursing Area, annual land revenue will be paid to the state.
On May 8, 2005, Ba Ria – Vung Tau Provincial Tourism Company issued Decision No. 24/QD-DL authorizing Mr. Vo Tuan Thanh, Deputy Director of Ba Ria – Vung Tau Provincial Tourism Company to represent for the Provincial Tourism Company to join the member council of Vung Tau Tourism Nursing Company Limited. Mr. Thanh has the right to participate and vote in meetings of the Board of Members of Vung Tau Tourism Nursing Company Limited. And Mr. Lo Chiu Hong is Chairman of the Board of Members of Vung Tau Tourism Nursing Company Limited.
By February 2007, Vung Tau Tourism Nursing Area (Medicoast) officially operated with an investment cost of nearly 80 billion VND. Medicoast was built with a 4-storey building for medical examination and treatment with a system of modern medical equipment. A 7-storey building for nursing and entertainment services with 130 bedrooms meeting standards equivalent to a 3-star hotel. In addition, Medicoast also has 2 villas with 8 luxury rooms for VIP guests… This was the first combined medical tourism model in Vietnam at that time.
By 2010, while needing capital to invest in Nursing Center infrastructure, Medicoast borrowed capital from Phuong Nam Bank (now merged with Sacombank). The company then needs to borrow long-term capital, at least medium-term. But during the loan application review process, the Bank advised and required Medicoast to choose a short-term loan.
Under pressure to need financial resources to cover the project, Medicoast had to accept a 12-month loan. By 2011, when the debt matured, Medicoast asked the Bank to extend the debt. However, the Bank did not agree to extend the debt but only agreed to lend a new loan to roll over the old loan.
After that, Southern Bank asked Medicoast to borrow 60 billion VND, of which 45 billion VND was to be repaid immediately and the remaining 15 billion VND, Medicoast could not use but had to send back to the Bank in the form of a loan. savings account. This savings interest amount is immediately collected by the bank to be deducted from the loan. Do not use borrowed capital to incur large loan interest rates when loan interest rates sometimes reach 32.4%/year.
On July 12, 2013, because Medicoast could not repay the loan, Southern Commercial Joint Stock Bank sued the business in court.
The “strange” land price case
After Phuong Nam Commercial Joint Stock Bank sued Vung Tau Tourism Nursing Company Limited (Medicoast) to court, there were many conciliation sessions, but failed. On July 7, 2014, the Civil Judgment Enforcement Department Vung Tau City issued notice No. 378/TB-CCTHA on property auction.
| Currently, the land at 165 Thuy Van belongs to the business with a price of just over 156 billion VND. |
Specifically, the Vung Tau City Civil Judgment Enforcement Department conducted a distraint, valuation, and signed a contract with Chau Thanh Asset Auction Service Company Limited to auction assets of 8,189 use rights. 2m2 of land at 165 Thuy Van, Thang Tam ward, Vung Tau city. Starting price is 186,285,000,000 VND.
On November 24, 2014, the Civil Judgment Enforcement Department announced that it had successfully auctioned the land plot for 167,700,000,000 VND to Phuc Vinh Dat Company Limited. However, on March 5, 2015, Vung Tau City Judgment Enforcement Department announced that Phuc Vinh Dat Co., Ltd. had not paid the full amount to buy the property, so it canceled the contract.
On May 13, 2015, Vung Tau City Judgment Enforcement Department continued to issue notice No. 310/TB-CCTHA announcing the second auction of property at 165 Thuy Van, the starting price was lowered. 167,656,500,000 VND left.
On June 25, 2015, the Vung Tau City Judgment Enforcement Department issued notice No. 485/TB-CCTHA on the initial sale of land plot 165 Thuy Van, the starting price was lowered to 155,920,545,000. copper.
On August 3, 2015, Vung Tau City Judgment Enforcement Department issued notice No. 593/TB-CCCTHA stating that Green World General Joint Stock Company has an address of 47 Nguyen Cuu Van, Ward 17, Binh Thanh District. , Ho Chi Minh City won the auction for the above land lot with the winning price of 156,150,000,000 VND and this was also the only business participating in the auction of this land lot.
However, on December 15, 2016, Vung Tau Tourism Nursing Company Limited (Medicoast) sent a petition to the Chief Justice of the High People’s Court in Ho Chi Minh City and the Director of the High People’s Procuracy of Ho Chi Minh City. request to consider cassation appeal against the Decision recognizing the agreement between the Company and Southern Bank.
According to the content that Medicoast sent to the Chief Justice of the High Court in Ho Chi Minh City, it clearly stated that there are two main legal grounds that Medicoast raised to request cassation review of the case. First, Medicoast believes that the 60 billion VND loan contract is a fake contract regarding the loan amount. In reality, Medicoast only borrowed 45 billion VND, but signed the contract with a loan amount of 60 billion VND.
According to the provisions of Article 129, Civil Code, when the parties establish a civil transaction artificially to conceal another transaction, the artificial transaction is invalid, while the hidden transaction is still valid. , unless that transaction is also invalid according to the provisions of this code… Thus, the loan contract of 60 billion VND is invalid and Medicoast is only responsible for the actual loan amount of 45 billion VND and the interest rate. up there.
Second, Medicoast believes that the content of the agreement between the parties violates the law when recognizing the Bank’s illegal profits. According to the provisions of the Civil Code (Article 476), the loan interest rate is agreed upon by the parties but does not exceed 150% of the base interest rate. At the time the transaction took place – 2010 – the basic interest rate was 9%/year. Therefore, the Bank’s initial interest rate of 21.6%/year and later up to 32.4% is a violation of the law.
In addition to interest, the Bank also charges a penalty of 32.4%, while according to regulations, interest on late payment is based on the basic interest rate, which is 9%/year. Because of this illegal content, up to now, in addition to the actual principal amount of VND 45 billion, Medicoast has to pay a huge amount of interest, pushing the total amount actually paid up to VND 107.4 billion. .
According to the provisions of Article 188 on “Effectiveness of the decision to recognize the agreement of the litigants”, Civil Procedure Code 2004, the decision to recognize the agreement of the litigants can be protested according to the following procedures: cassation procedure if there are grounds to believe that the agreement is illegal. Therefore, Medicoast requested the Chief Justice of the High People’s Court in Ho Chi Minh City and the Director of the High People’s Procuracy of Ho Chi Minh City to consider the appeal. The appeal will be the basis for the Cassation Council to consider canceling the court’s decision, from which the case will be retried, ensuring justice, legitimate rights and interests of the parties.
It is known that the time limit for Medicoast to request cassation has expired (1 year from the date of issuance of the decision to recognize the parties’ agreement). However, the deadline for the competent people, in this case the Chief Justice of the High People’s Court in Ho Chi Minh City, and the Director of the High People’s Procuracy of Ho Chi Minh City, to issue a decision to appeal, is still open ( period of 3 years)…
Mr. Lo Chiu Hong, Chairman of the Board of Members of Vung Tau Tourism Nursing Company Limited, said that the company is currently still suing the credit contract dispute of Medicoast Company with Southern Bank.
For land lot 165 Thuy Van, on March 24, Green World General Joint Stock Company broke ground on a resort real estate project called the 5-star Five Star Odyssey hotel. The project is designed to be 40 floors high, including tourist apartments (condotel) and a hotel. Of which, the number of 5-star hotel rooms is 436, the number of apartments is 1,0192 and 12 penthouses.
Mr. Mai Trung Hung, Deputy Director of Ba Ria – Vung Tau Department of Construction, said that this project has just been granted an investment policy and has not yet been granted a construction license.
