Local authorities in a number of cities and provinces are seeking police assistance in an investigation into a suspected scam.
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Thousands of citizens and business representatives attended a conference on sustainable forestry held in Nha Trang by Rung Toan Cau Company on February 19. Hoang Quoc Binh, head of Rung Toan Cau, announced that they were able to secure USD39 billion from foreign non-government organisations to help Vietnamese firms deal with debts and win development projects in Laos, Cambodia and Myanmar.
In order to receive these funds, Binh said that enterprises would be given shares in the company. These shares would then be exchangeable for funds in the future.
Nguyen Quang Duong, of the Forestry Department of the Ministry of Agriculture and Rural Development, said he had never heard of Rung Toan Cau, and that it was hard to believe that they had access to USD39 billion.
He said, "Several local authorities called me to check on this company and I advised them not to attend the conference, it's a waste of time. This company has held conferences in many other areas, such as Quang Ninh and HCM City but they have never invited the ministry."
Duong went on to say that foreign investments or charity groups must register, and only small areas of land have been reforested through charitable groups. "I think it's a scam. Some individuals or organisations might use such tricks to swindle property rights on forest land."
Trieu Van Luc, director of the Department of Forest Management, under the Forestry Department, said "We are waiting for further instructions and may ask for help from the police," Luc added.
Nguyen Ngoc Lung, head of Sustainable Forest Management and Forest Certification Institute, also said he had never heard of Rung Toan Cau. "Previously, a Vietnamese-Australian man visited various localities claiming he had a USD1 billion fund for reforestation without visiting authorities. I informed the local authorities so that they would be aware before cooperating with him. Later, he was caught by Interpol for conducting similar scams in Cambodia."
On February 21, the chairman of Dong Hai District People's Committee, in Bac Lieu Province, was surprised to see a thermal power plant and multi-function sea port project on Rung Toan Cau's website. He said they were calling for investment for the project. But no permit had been granted to any investor called Rung Toan Cau.
