Government orders probe into HCM City waiver of fee for land lease to foreign firm

Deputy Prime Minister Truong Hoa Binh has ordered an inspection into HCM City authorities’ leasing of 82.5ha of land to Malaysian property developer Gamuda Land Joint Stock Company without collecting land-use fees.

The Tan Thang residential, sports and educational complex in HCM City’s Tan Phu District.

He also instructed the ministries of Natural Resources and Environment and Finance, the Government Inspectorate and the city People’s Committee to clarify the land-use plans for the Tan Thang residential, sports and educational complex in Tan Phu District.

According to the Government Office, the People’s Committee initially named the Sai Gon Thuong Tin Tan Thang Investment Real Estate Joint Stock Company (Tan Thang) as the developer of the complex.

Gamuda Land then bought out Tan Thang to fully own the project.

Recently Gamuda Land asked the People’s Committee to refund VND514 billion (US$21.83 million) it had paid as compensation and for site clearance of 34.6ha within the complex now used as public facilities.

 

But according to the Government Inspectorate, the company did not pay the compensation and only acquired Tan Thang to become the owner of the project, and so it cannot be refunded the compensation amount.

Besides, the 2003 Land Law does not say that the Government could lease land without land-use fees for construction of public works for commercial purposes, it said.

The city People’s Committee issued Decision 5081 in 2010 for leasing Gamuda the land for building the complex without paying land-use fees, it added.

Binh ordered the Ministry of Natural Resources and Environment to submit the inspection result to the Government by June 30. — VNS

 
 

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