The issuance of investment certificates for two controversial steel plants at the Thanh Vinh Industrial Park in the central coastal city of Danang was found to be contrary to regulations on industrial zones, according to the inspection findings of the city’s Inspectorate. Two former city chairmen could be to blame in this case, officials said.

A view of Dana-Uc Steel Plant in the central coastal city of Danang

Late last week, the Danang Inspectorate released its inspection findings on the Dana-Y and Dana-Uc steel plants, which were accused of causing environmental pollution.

Results indicate that the Danang People’s Committee had appraised, planned and granted an investment certificate for establishing Thanh Vinh Industrial Park, which was later transferred to the owner of the two steel plants for building the pollution-causing factories.

According to the Inspectorate, the responsibility lies with the Danang Department of Construction, Danang Industrial Zone Infrastructure Development and Exploitation Company (Daizico) and Danang C.T. Construction and Investment Company.

The municipal People’s Committee granted the land use rights certificate to the park investor, who then transferred it to the two plants for the purpose of using the park land over the long term, violating the 2003 Land Law.

The municipal Investment Promotion Center processed the registration application of Dana-Y Steel Company and submitted it to the People’s Committee for approval and made adjustments to the investment certificate. This act was not in compliance with prevailing regulations.

Therefore, the then-leaders of the committee, including ex-chairmen Tran Van Minh (for the 2006-2011 tenure) and Van Huu Chien (for the 2011-2014 tenure), are responsible for the unlawful approval of the revised certificate.

Similarly, leaders at the municipal Department of Science and Investment and the municipal People’s Committee should be held accountable for appraising and issuing the investment certificate for Dana-Uc Steel Company.

Overall, the approval of the certificates for the two plants was not in line with regulations governing industrial zones and went against the own investment principles of the committee, as investment in and installation of new steelworks in industrial zones are not allowed.

The plants have had output exceeding their permissible capacities and have failed to meet the minimum environmental safety distance of 500 meters between production facilities and residential zones.

Although the general directors of the two plants did not seek licenses for construction, they did build facilities at the park. As a result, they should be held responsible for this violation, according to the Danang Inspectorate.

During the plants’ operations, unlawful changes were made to the machinery and equipment in their furnace systems, based on their environmental impact assessment reports.

The plants have even violated some environmental protection regulations. For instance, the management of hazardous waste and the treatment of furnace exhaust were not effectively handled for years.

The treatment of solid waste was not executed in line with the solutions in the environment impact assessment reports. Furthermore, efforts to minimize noise and plant trees were incomplete.

Founded in January 2008, Dana-Y Steel Company covers 15 hectares of land in Thanh Vinh Industrial Park. Its main products include reinforced concrete steel and steel billets, annually providing 400,000 tons of products nationwide.

Meanwhile, Dana-Uc Steel Company manufactures 300,000 tons of construction steel and 300,000 tons of steel billets annually for the domestic market and for export.

SGT