VietNamNet Bridge - HCM City spokesman – Mr. Vo Van Luan - confirmed yesterday that the city would clarify the allegations that investors bribed some officials in Hanoi $2.8 million to get the Sing-Viet new urban area project in HCM City.

The Viet-Sing urban project.

At a press conference on March 27, Luan – Head of the Office of the HCM City People’s Committee said that the HCM City Appellate Court had asked the HCM City authorities to clarify the testimony that the investor of the Sing-Viet urban area project bribed some officials in Hanoi $2.8 million.

According to the recommendations of the HCM City Appeal Court, with an investment of more than $300 million, the Sing-Viet urban area project in Le Minh Xuan Commune , Binh Chanh District, HCM City is a sport, tourism, commerce and apartment complex covering 331 hectares.

In 2007, the HCMC People's Committee assigned this project to the Sing-Viet Urban Joint Venture Company, including Singaporean firms and the Binh Chanh Construction JSC. However, since the project was licensed, the investor has not had any significant investment activities.

The Binh Chanh Construction JSC withdrew from the joint venture, leaving four foreign companies. In late 2011, the HCMC People's Committee granted the amended investment certificate, changing the Sing-Viet Urban JVC into the wholly foreign-owned Sing-Viet City LTD.

On 1/12/2011 the HCMC People's Committee granted the adjusted investment certificate to the company, with the representative changed from a Singaporean to a Malaysian.

A member company - ST.Martin's Properties or SMP, a Singaporean company, sued the HCM City Department of Planning and Investment and the HCMC People's Committee, saying that this adjustment was illegal because having no consent from the member firms.

They asked the HCMC People's Court to annul the adjusted investment certificate and maintain the validity of the first certificate and to force the HCM City Department of Planning and Investment and the HCM City People's Committee to pay $300 million compensation to them. On July 8, 2013, the HCMC People's Court dismissed the requests. The plaintiff appealed.

During the trial on October 30, 2013, the Court of Appeals said the lawsuit had new important evidence but the Panel could not supplement at the appeal court so it canceled the verdict of the trial court.

The Court of Appeals also asked the HCM City People’s Committee to force the parties involved to explain the bribery allegations, under which the investors gave officials in Hanoi $2.8 million.

The HCMC People's Committee Office Chairman said previously, the competence to grant investment license to the Sing-Viet urban project belonged to the Ministry of Planning and Investment. This right was later assigned to the city authorities.

"I affirm that the city is trying to attract foreign investment so the license changing procedure is very simple so investors don’t need to “lubricate.” The city will clarify this issue in order to protect its honor," said Luan.

He added that, after the bribery allegations related to the Japanese contractor JTC was revealed, HCM City has reviewed the railway projects funded by Japanese ODA loans in the city.

In particular, JTC participated in the metro route 1 (Ben Thanh - Suoi Tien). However, the inspection showed that the procedures were performed in the right way. In the south, beside the metro line 1 project, JTC also involved in the Hoa Hung – Trang Bom rail research project.

VNE