Business
Rung Toan Cau tries to collect on empty promise
  • | tienphong, dtinews.vn | February 24, 2014 03:06 PM
 >>  Suspected scam shakes forestry sector

More signs of evident scams from Rung Toan Cau Company continue to surface, prompting Thanh Hoa Province authorities to issue warnings.

Rung Toan Cau belongs to a group of eight joint-venture companies whose charter capital is claimed to be around VND78 trillion (USD3.7 million).

Nguyen Thi Thuan, the headmistress of a nursery school in Thanh Hoa Province, said one of her students gave her an invitation. The student told Thuan that a stranger gave it to him.

The letter was on Hien Vinh Company letterhead. The company apparently helped to organise conferences and meetings for Rung Toan Cau. Thuan said, "They want to do charity for disadvantaged children and households. They also promised a support for us worth VND17 billion, but we haven't heard from them since. We were also warned by police to be careful with this company."

There is no primary address listed for Hien Vinh, and neighbours who live near the secondary address say the company moved out years ago.

Reporters disguised as customers approached Rung Ben Vung Toan Cau, at an office located on Khuat Duy Tien Street in Hanoi. Only three employees were seen working in a five story building.

 

 Headquarters of Rung Ben Vung Toan Cau

According to employees at the site, the company offers individuals or groups who wish to start an agricultural business a chance to borrow capital. After submitting land-use permits and VND27,250,000 the organization or individual "will receive share in our company, worth VND545 million," according to one employee.

Colonel Nguyen Van Binh, deputy head of Public Security Department in Thanh Hoa Province said, "A few years ago, some individuals and organisations gathered books on land-use rights in order to invest in a forest development project. The project was never implemented. The same scam was used again in 2013. In that case we also recovered nearly 1,000 law books on land-use rights."

On January 25, Thanh Hoa Province People's Committee issued directives warning against so called charity funds from eight joint-venture companies who do not have the financial capacity to carry out their promises. On February 12, the local Department of Agriculture and Rural Development also warned other agencies against cooperating with these companies.

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