The Inspection Committee of the HCM City Party Committee has announced the conclusion of the Standing Committee of the Party Committee on the violations in management and use of state-owned land and on-land assets committed by the Party Committee of Saigontourist in the 2010-2015 and 2015-2020 terms.

The 156 hectare project

The violations occurred at a 156-hectare project at Dua Farm in Long Truong Ward in District 9.

In 2004, the HCM City authorities allowed Saigontourist to develop the Sai Gon golf course tourism complex project. One year later, they allowed Saigontourist to cooperate with Thu Duc Tourism and a private company to establish a new legal entity called Sai Gon Golf JSC with charter capital of VND200 billion.

Of this amount, Saigontourist and Thu Tourism contributed 35 percent and 15 percent of capital, respectively, while the private company and VinaCapital contributed 30 percent and 20 percent, respectively.

In February 2007, Saigontourist released a decision on assigning Sai Gon Golf JSC to act as the investor of the project.

Saigontourist said the landscapes were suitable for ecotourism development and asked to change the project to the Sai Gon conference and ecotourism complex.

In 2010, the HCM City People’s Committee approved the adjustment of the functions of the land at Dua Farm as proposed by the investor.

However, in 2014, Vice Mayor Nguyen Huu Tin released a decision on taking back the 156 hectares of land at the farm from Saigontourist and re-allocating it to the District 9 People’s Committee.

Later, in December 2015, Tin signed a document recognizing Sai Gon Golf as the investor of the residential quarter in Dua Farm area (the first project phase).

By that time, there had been major changes in the structure of shareholders of Sai Gon Golf. There were only two shareholders – Saigontourist and a private company. The HCM City People’s Committee told Saigontourist not to contribute more capital to Sai Gon Golf.

In October 2015, Sai Gon Golf JSC changed into Sai Gon Golf Co Ltd. The capital of the owners was valued at VND1.29 trillion, of which 50 percent belonged to Saigontourist.

In 2016, Saigontourist CEO Tran Hung Viet asked for permission to sell the 50 percent of capital to a private company, citing the HCM City People’s Committee Decision on December 16, 2013 on the restructuring of Saigontourist in the 2013-2015 period

On January 24, 2017, HCM City Vice Mayor Tran Vinh Tuyen signed a document allowing Saigontourist to transfer its contributed capital in Sai Gon Golf to a private company.

Saigontourist divested all the capital in the legal entity, leaving the residential quarter project in private hands. 

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