Illegalities ranging from no-bid contracts to withholding land compensation have been nothing out of the ordinary at a US$126 million project near Ho Chi Minh City, the Government Inspectorate has found.
The Inspectorate released the conclusions Tuesday after investigators wrapped up their probe of a major construction project in Binh Duong Province, said Deputy Chief Inspector Le Tien Hao.
Inspections of the 4,200-hectare Binh Duong Industrial, Service and Urban Complex (ISUC) project found the provincial People's Committee had given land to ill-equipped and unqualified companies while other local agencies had failed to collect land-use taxes and had allowed construction to begin in several places without proper permits.
Additionally, scores of displaced residents had yet to receive compensation for their losses, said investigators.
Hao said Prime Minister Nguyen Tan Dung had instructed the Binh Duong People's Committee to collect nearly VND64 billion ($3.67 million) in back taxes from individuals and organizations involved in the project.
He also asked the committee to issue "harsh measures" against those involved in the wrongdoings.
In line with Dung's orders, the committee will also have to recompense compensation after being relocated to other areas to make way for the project.
Compensation will also have to be adjusted for inflation, the Prime Minister instructed, as much of it was supposed to have been disbursed years ago.
The VND2.2 trillion ISUC project aims to build industrial parks, service-related commercial zones and urban residential zones to support technology manufacturers and other production in the area.
Host of violations
Though ISUC was not approved until 2005, inspectors found the Binh Duong People's Committee had begun site clearance as early as late-2003. The provincial administration also broke the law by handing land to several investors without inspecting their credentials and financial capabilities, inspectors said.
Between 2006 and 2007, the hectares to the Binh Duong Production and Import Export Company (BDPIEX) and Tri Viet Media Corporation.
Although BDPIEX had paid no taxes on the land and has yet to obtain any official documents, the company used the value of the land to contribute capital in the formation of two new joint venture companies.
BDPIEX used 162 hectares, valued at $8.1 million, as a capital contribution to Phu My Development and Investment JSC while also contributing 150 hectares, valued at $9 million, to form Tan Thanh Development and Investment JSC, said investigators.
Inspectors said the provincial Department of Planning and Investment violated the Land Law and a Financial Ministry circular when it granted investment licenses to the two joint-venture companies.
The Binh Duong People's Committee also violated a government decree when handing land to Phu Gia Company and An Hoa JSC without inspecting their financial capacity, said investigators.
Inspectors also said the two companies then illegally transferred their projects to the HCMC General Import Export and Investment JSC and Hung Thinh Company.
Inspectors found that the only revenue Phu Gia Company and An Hoa JSC had received since their establishment in 2004 had come from projects at the complex.
The People's Committee further broke the law by handing over some 1,650 hectares to construct five resettlement areas and a new urban zone in no-bid contracts, said investigators.
Local authorities also failed to collect taxes properly and several investors had started construction without land-use certificates or construction permits, inspectors said.
The Inspectorate released the conclusions Tuesday after investigators wrapped up their probe of a major construction project in Binh Duong Province, said Deputy Chief Inspector Le Tien Hao.
Inspections of the 4,200-hectare Binh Duong Industrial, Service and Urban Complex (ISUC) project found the provincial People's Committee had given land to ill-equipped and unqualified companies while other local agencies had failed to collect land-use taxes and had allowed construction to begin in several places without proper permits.
Additionally, scores of displaced residents had yet to receive compensation for their losses, said investigators.
Hao said Prime Minister Nguyen Tan Dung had instructed the Binh Duong People's Committee to collect nearly VND64 billion ($3.67 million) in back taxes from individuals and organizations involved in the project.
He also asked the committee to issue "harsh measures" against those involved in the wrongdoings.
In line with Dung's orders, the committee will also have to recompense compensation after being relocated to other areas to make way for the project.
Compensation will also have to be adjusted for inflation, the Prime Minister instructed, as much of it was supposed to have been disbursed years ago.
The VND2.2 trillion ISUC project aims to build industrial parks, service-related commercial zones and urban residential zones to support technology manufacturers and other production in the area.
Host of violations
Though ISUC was not approved until 2005, inspectors found the Binh Duong People's Committee had begun site clearance as early as late-2003. The provincial administration also broke the law by handing land to several investors without inspecting their credentials and financial capabilities, inspectors said.
Between 2006 and 2007, the hectares to the Binh Duong Production and Import Export Company (BDPIEX) and Tri Viet Media Corporation.
Although BDPIEX had paid no taxes on the land and has yet to obtain any official documents, the company used the value of the land to contribute capital in the formation of two new joint venture companies.
BDPIEX used 162 hectares, valued at $8.1 million, as a capital contribution to Phu My Development and Investment JSC while also contributing 150 hectares, valued at $9 million, to form Tan Thanh Development and Investment JSC, said investigators.
Inspectors said the provincial Department of Planning and Investment violated the Land Law and a Financial Ministry circular when it granted investment licenses to the two joint-venture companies.
The Binh Duong People's Committee also violated a government decree when handing land to Phu Gia Company and An Hoa JSC without inspecting their financial capacity, said investigators.
Inspectors also said the two companies then illegally transferred their projects to the HCMC General Import Export and Investment JSC and Hung Thinh Company.
Inspectors found that the only revenue Phu Gia Company and An Hoa JSC had received since their establishment in 2004 had come from projects at the complex.
The People's Committee further broke the law by handing over some 1,650 hectares to construct five resettlement areas and a new urban zone in no-bid contracts, said investigators.
Local authorities also failed to collect taxes properly and several investors had started construction without land-use certificates or construction permits, inspectors said.
Illegalities ranging from no-bid contracts to withholding land compensation have been nothing out of the ordinary at a US$126 million project near Ho Chi Minh City, the Government Inspectorate has found.
The Inspectorate released the conclusions Tuesday after investigators wrapped up their probe of a major construction project in Binh Duong Province, said Deputy Chief Inspector Le Tien Hao.
Inspections of the 4,200-hectare Binh Duong Industrial, Service and Urban Complex (ISUC) project found the provincial People's Committee had given land to ill-equipped and unqualified companies while other local agencies had failed to collect land-use taxes and had allowed construction to begin in several places without proper permits.
Additionally, scores of displaced residents had yet to receive compensation for their losses, said investigators.
Hao said Prime Minister Nguyen Tan Dung had instructed the Binh Duong People's Committee to collect nearly VND64 billion ($3.67 million) in back taxes from individuals and organizations involved in the project.
He also asked the committee to issue "harsh measures" against those involved in the wrongdoings.
In line with Dung's orders, the committee will also have to recompense compensation after being relocated to other areas to make way for the project.
Compensation will also have to be adjusted for inflation, the Prime Minister instructed, as much of it was supposed to have been disbursed years ago.
The VND2.2 trillion ISUC project aims to build industrial parks, service-related commercial zones and urban residential zones to support technology manufacturers and other production in the area.
Host of violations
Though ISUC was not approved until 2005, inspectors found the Binh Duong People's Committee had begun site clearance as early as late-2003. The provincial administration also broke the law by handing land to several investors without inspecting their credentials and financial capabilities, inspectors said.
Between 2006 and 2007, the hectares to the Binh Duong Production and Import Export Company (BDPIEX) and Tri Viet Media Corporation.
Although BDPIEX had paid no taxes on the land and has yet to obtain any official documents, the company used the value of the land to contribute capital in the formation of two new joint venture companies.
BDPIEX used 162 hectares, valued at $8.1 million, as a capital contribution to Phu My Development and Investment JSC while also contributing 150 hectares, valued at $9 million, to form Tan Thanh Development and Investment JSC, said investigators.
Inspectors said the provincial Department of Planning and Investment violated the Land Law and a Financial Ministry circular when it granted investment licenses to the two joint-venture companies.
The Binh Duong People's Committee also violated a government decree when handing land to Phu Gia Company and An Hoa JSC without inspecting their financial capacity, said investigators.
Inspectors also said the two companies then illegally transferred their projects to the HCMC General Import Export and Investment JSC and Hung Thinh Company.
Inspectors found that the only revenue Phu Gia Company and An Hoa JSC had received since their establishment in 2004 had come from projects at the complex.
The People's Committee further broke the law by handing over some 1,650 hectares to construct five resettlement areas and a new urban zone in no-bid contracts, said investigators.
Local authorities also failed to collect taxes properly and several investors had started construction without land-use certificates or construction permits, inspectors said.
The Inspectorate released the conclusions Tuesday after investigators wrapped up their probe of a major construction project in Binh Duong Province, said Deputy Chief Inspector Le Tien Hao.
Inspections of the 4,200-hectare Binh Duong Industrial, Service and Urban Complex (ISUC) project found the provincial People's Committee had given land to ill-equipped and unqualified companies while other local agencies had failed to collect land-use taxes and had allowed construction to begin in several places without proper permits.
Additionally, scores of displaced residents had yet to receive compensation for their losses, said investigators.
Hao said Prime Minister Nguyen Tan Dung had instructed the Binh Duong People's Committee to collect nearly VND64 billion ($3.67 million) in back taxes from individuals and organizations involved in the project.
He also asked the committee to issue "harsh measures" against those involved in the wrongdoings.
In line with Dung's orders, the committee will also have to recompense compensation after being relocated to other areas to make way for the project.
Compensation will also have to be adjusted for inflation, the Prime Minister instructed, as much of it was supposed to have been disbursed years ago.
The VND2.2 trillion ISUC project aims to build industrial parks, service-related commercial zones and urban residential zones to support technology manufacturers and other production in the area.
Host of violations
Though ISUC was not approved until 2005, inspectors found the Binh Duong People's Committee had begun site clearance as early as late-2003. The provincial administration also broke the law by handing land to several investors without inspecting their credentials and financial capabilities, inspectors said.
Between 2006 and 2007, the hectares to the Binh Duong Production and Import Export Company (BDPIEX) and Tri Viet Media Corporation.
Although BDPIEX had paid no taxes on the land and has yet to obtain any official documents, the company used the value of the land to contribute capital in the formation of two new joint venture companies.
BDPIEX used 162 hectares, valued at $8.1 million, as a capital contribution to Phu My Development and Investment JSC while also contributing 150 hectares, valued at $9 million, to form Tan Thanh Development and Investment JSC, said investigators.
Inspectors said the provincial Department of Planning and Investment violated the Land Law and a Financial Ministry circular when it granted investment licenses to the two joint-venture companies.
The Binh Duong People's Committee also violated a government decree when handing land to Phu Gia Company and An Hoa JSC without inspecting their financial capacity, said investigators.
Inspectors also said the two companies then illegally transferred their projects to the HCMC General Import Export and Investment JSC and Hung Thinh Company.
Inspectors found that the only revenue Phu Gia Company and An Hoa JSC had received since their establishment in 2004 had come from projects at the complex.
The People's Committee further broke the law by handing over some 1,650 hectares to construct five resettlement areas and a new urban zone in no-bid contracts, said investigators.
Local authorities also failed to collect taxes properly and several investors had started construction without land-use certificates or construction permits, inspectors said.
Source: Thanhnien News
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