VietNamNet Bridge - According to the Government Inspectorate, the allocation of land, land auction and transfer of land use rights in Da Nang city caused losses of over VND3.4 trillion (over $160 million) for the state budget.


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Da Nang city.
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On January 17, the Government Inspectorate announced the conclusion on the inspection of responsibilities of the Chair of Da Nang People's Committee in the observance of law on inspection, complaints, denunciations and anti-corruption.

According to the Deputy Chief Inspector Nguyen Duc Hanh, Da Nang’s urban development process has been very "hot" in recent years. The city had many investment projects and revoked a lot of land for implementing large projects. However, the management of land and construction investment revealed many violations, affecting the interests of the State. Inspection and anti-corruption in these areas was not given adequate attention. Consequently, violations occurring in a long time but were not detected.

The land use plan was not made based on good ground and was inconsistent with the socio-economic development situation and actual needs of the city. After being leveled and cleared for lease, a large area of land was left fallow. The implementation of auction of land use rights was not good and did not comply with the Land Law and the Decision of the Prime Minister. The successful auction rate was too low, not making a fair and objective market for the transfer of land use rights.

Allocating land not through auction was popular, resulting in the fixing of land use fee not close to the land use right transfer prices in the market, which benefited some investors.

As being reported by the People's Committee of Da Nang, from 2003 to 2011, the city recovered, allocated and leased land for 1,061 projects, with an area of 17,534 hectares, collecting over VND25.271 trillion. But the transfer of land use rights, land lease, etc. were not compliant with the provisions of the law, causing big losses to the state budget.

For example, through the transfer of land to other partners, Phuc Thien Long Co., Ltd earned profit of nearly VND500 billion ($25 million); Ms. Pham Thi Dong bought more than 34,000 m2 of land for VND88 billion ($4.4 million) and earned more than VND600 billion ($30 million) after selling the land to others; Mr. Hoang Hai and Ms. Trung Thi Lam Ngoc earned nearly VND500 billion ($25 million) from buying a plot of land worth VND84 billion ($4.2 million) on Pham Van Dong Road.

According to the Government Inspectorate, the amount to be collected from the transfer of land use rights of 22 violated projects is up to over VND2.12 trillion. In addition, there are many plots of land that the prices must be redefined.

It is wrong for the People's Committee of Da Nang to reduce 10 percent of land use fees for the resettlement households and the organizations and individuals who were assigned land and received the transfer of land use rights, causing losses of more than VND446 billion (from resettlement households) and more than VND867 billion (from other organizations or individuals).

The Government Inspectorate asked the Prime Minister to reprimand the Chair and Vice Chairs of the Da Nang People's Committee and related organizations and individuals (in 2003 - 2011) for causing losses of more than VND3,434 billion to the state budget.

The Government Inspectorate also asked the Prime Minister to accept the proposal of the Da Nang People's Committee to not collect VND446 billion that was reduced for the resettlement households.

The agency asked the Chair of Da Nang to examine, review and propose solutions to settle land-related complaints, to stop allocating and selling land in the form of signing transfer land use right contracts, to withdraw, cancel or amend 26 land use right certificates that were wrongly granted.

The agency also proposed Da Nang to recover of more than VND2,353 billion to the city budget from land lease and transfer.

Da Nang must review and penalize the Directors of the Departments of Finance, Construction, Natural Resources and Environment and Home Affairs, the Land Valuation Council, the Office for Land Use Right Registration, the Land Exploitation and Use Company, the Bach Dang Dong Road Project Management Unit, the Chair of Da Nang People's Committee Office and related individuals.

According to the Office of the Government, Prime Minister Nguyen Tan Dung instructed the post-inspection tasks as follows: approving the conclusions and recommendations of the Government Inspectorate in Document No. 2852; The Chair of Da Nang People's Committee must review and clarify the responsibilities of organizations and individuals related to the violation and strictly deal with the violations in accordance with the law, implement the recommendations of the Government Inspectorate and thoroughly recover losses for the state budget.

The Prime Minister also assigned the Ministries of Natural Resources and Environment, Finance, Planning and Investment to inspect the observance of the law on management and use of land, financial revenue and expenditure and the implementation of investment projects related to land allocation or land lease in Da Nang in recent years.

The Ministry of Public Security was instructed to verify, clarify signs of deliberate violation of the law on land and construction and illegal land transfer, causing loss of revenue to the state budget.

Compiled by Tran Cham