The People’s Committee of Lam Dong Province has requested the Department of Justice to coordinate with the Department of Finance and the Department of Natural Resources and Environment to review and report on the legal basis for the authority to approve the adjustment of the budget for implementing the Project on Strengthening Management of Land with Origin from State-owned Agro-Forestry Enterprises in Lam Dong Province (referred to as the Project).
One of the Project’s tasks is to build a cadastral database for all land users with origins from state-owned agro-forestry enterprises in Lam Dong Province. Photo for illustration purposes.
The review will focus on the approval authority for the budget implementation of the aforementioned Project, as per Decision No. 1171/QD-UBND dated June 27, 2022, by the Chairman of the Provincial People’s Committee. The Departments are also tasked with providing consultations and proposals to ensure compliance with legal regulations.
Regarding this Project, the Lam Dong Provincial Inspectorate issued Inspection Conclusion No. 85/KL-TTr. According to the conclusion, the unit responsible for budget estimation, the Technology Development Support Center under the Hanoi University of Mining and Geology, did not base their wood formwork unit price for the casting and planting of milestones on state agency prices.
The unit price set by the center was over VND 2.27 million/m2, while the price announced by the construction material price authority as of October 15, 2021, was nearly VND 98,000/m2. This resulted in a discrepancy of nearly VND 2.17 million/m2, or more than 23 times the announced price.
Consequently, the budget estimate for the planting of milestones was nearly VND 18.9 billion higher than the regulated amount, including a difference of nearly VND 18.1 billion for 8,317 milestones and an inspection and acceptance cost of VND 800 million. This created a loophole for contractors to benefit during the implementation of the project packages.
Following the inspection conclusion, on May 14, the Department of Natural Resources and Environment submitted a report to the People’s Committee of Lam Dong Province, proposing an adjustment to the Project’s budget. They recommended reducing the approved budget from VND 305.56 billion to over VND 285.6 billion (a decrease of over VND 19.9 billion).
The reason for this adjustment, as stated by the Department, was that the wood formwork price of VND 2,272/m2 was deemed inappropriate compared to the price level at the time of budget approval. Therefore, they proposed a revision to align with the actual price at the time of implementation, which was VND 56,818/m2 (a reduction of over 39 times).
On June 26, the Department of Finance also proposed adjusting the Project’s budget from VND 305.56 billion to over VND 285.5 billion (a decrease of over VND 20 billion). This included a reduction of VND 19.256 billion in milestone planting costs and VND 771 million in inspection and acceptance costs.
Unlike the Department of Natural Resources and Environment, the Department of Finance justified their proposal by referring to Decision No. 877, issued in April 2019 by the People’s Committee of Lam Dong Province, which set the unit price of construction materials, including wood formwork, at VND 2,272,727/m3. However, according to Circular No. 49/2014/TT-BTNMT, the unit price of wood formwork for milestone molds is calculated in m2.
By converting the unit from m3 to m2 and referring to the market price of wood formwork with a thickness of 2cm, the Department of Finance determined that the unit price should be just under VND 45,455/m2 (a decrease of over 49 times). This resulted in a reduction of VND 19.256 billion in milestone planting costs and VND 771 million in inspection and acceptance costs, as mentioned earlier.
In relation to this Project, after Inspection Conclusion No. 85 was issued, the Department of Finance organized a meeting to review and assign responsibilities to individuals. Two officials from the Department of Finance, including a deputy head of the Price and Public Property Management Division (who was the deputy head of the Finance and Administrative Division at the time of the incident) and a deputy head of the Finance and Administrative Division (who was a specialist in the Finance and Administrative Division at the time), were asked to review and draw lessons from the incident.
Three officials from the Department of Natural Resources and Environment were also implicated in the violations mentioned in Conclusion No. 85/KL-TTr. Two of them, including the Director and Deputy Director of the Office of the Department, were under the jurisdiction of the Director of the Department of Natural Resources and Environment. The Department’s Disciplinary Council voted to not impose disciplinary action but recommended that they seriously review and draw lessons from the incident.
The remaining official, Mr. Huynh Ngoc Hai, Director of the Department of Natural Resources and Environment, was under the jurisdiction of the Chairman of the Provincial People’s Committee. The Department of Home Affairs proposed that the People’s Committee assign the Department of Home Affairs to organize a review and clarify the responsibilities of the Director of the Department of Natural Resources and Environment, as mentioned above.
The Department of Home Affairs acknowledged that the individuals involved had taken responsibility and seriously reviewed and drawn lessons from the incident. Additionally, according to the Department of Finance’s review, the shortcomings and violations had not caused any state budget losses.
Lam Dong to Begin Construction of 2 Major Expressway Projects
The Tân Phú – Bảo Lộc and Bảo Lộc – Liên Khương expressways are currently undergoing urgent procedures and legal requirements in order to commence construction in 2024.
Lam Dong: Extending the start of the relocation of 2 expressway resettlement projects
Residential areas and resettlement for two highway projects in Lam Dong province are facing challenges in terms of fund waiting, bidding, environment, or planning.
How did the misconduct at The Panorama Da Lat project unfold?
Despite the Government Inspectorate’s conclusion after 4 years, numerous violations at the Entertainment and Trade Center Project located at 37 Tran Hung Dao Street, Da Lat City have yet to be resolved.
Auctioning off Thuy Ta Restaurant in Da Lat
The starting price for leasing rights to land and assets at Thuy Ta Restaurant in Da Lat City is 3.6 billion VND per year, for the purpose of operating a restaurant and food service establishment.
Lam Dong: Numerous departments “forget” to report project handling at 37 Tran Hung Dao.
After more than 6 months of guidance from the Provincial People’s Committee of Lam Dong, three departments have still failed to address the issues related to the project at 37 Tran Hung Dao Street by Phong Van Company.
