The Pearl of the Orient: FLC Group Wins Auction for Seven Projects in Bac Lieu City

The Inspectorate of Bac Lieu province has recently concluded an inspection into the formulation and implementation of construction planning in the region.

The conclusion of the inspection clearly states that the Department of Construction of Bac Lieu province has not fully fulfilled its advisory and managerial responsibilities in construction planning. Their inspection and supervision work has also been untimely, failing to detect and recommend local authorities to handle construction order issues in a timely manner.

The review process of the Department of Construction was found to be inadequate, as they did not identify mistakes made by the organizing agency in charge of construction planning. This led to the approval of plans with limitations and violations, such as two plans that failed to properly consult the community, and three plans that were advised and submitted for approval beyond their authority.

Furthermore, the inspection of construction permit dossiers was not rigorous enough, resulting in 23 cases of non-compliance. These include construction permits that were inconsistent with the land use purpose, had incorrect subjects compared to the location opening permits, lacked detailed planning, deviated from the approved planning, and lacked documents agreeing on height management from authorized agencies.

Regarding Bac Lieu city, the provincial inspectorate pointed out that several tasks and planning schemes failed to consult relevant agencies, organizations, individuals, and the community. In some cases, consultations were conducted, but the form and procedures did not comply with the Law on Urban Planning and the Law on Construction.

Three detailed planning schemes in Bac Lieu city were established without the necessary district planning, and one scheme lacked management regulations. Seven schemes were found to be inconsistent with the technical standards regarding residential land area and lacked land groups for healthcare, education, greenery, and markets. Most of the schemes for local adjustments did not report the content and plans for adjustments and were not updated in the planning dossiers.

Concerning the acceptance of sponsored planning products, the People’s Committee of Bac Lieu city was found to have accepted planning products sponsored by businesses and investors, which is contrary to the Law on Urban Planning. This provided an advantage to the investors, as most of the units won the land use rights auctions or project bids with a lack of competition and fairness, deterring other investors from participating.

Notably, this includes the Eco-Tourism and Resort Complex project in Hiep Thanh commune, Vinh Trach Dong, which includes the FLC Bac Lieu golf course, villas, and high-class entertainment facilities since 2018, sponsored by the FLC Group.

In relation to the FLC Group, the inspectorate identified that as of December 2023, there were eight projects/ten detailed planning schemes with an approved investor selection method. Among these, seven projects with high profitability potential were assigned to the group.

According to reports, FLC Group won the land use rights auctions for all seven projects. Three of these projects were awarded to the group after three unsuccessful auctions (with FLC being the only participant), and the remaining four projects had FLC as one of the two participants, with FLC ultimately winning the auctions.

While the land use rights auctions were outside the scope of the inspection, the Bac Lieu Provincial Inspectorate noted that in July 2022, the Investigation Police Agency of the Ministry of Public Security had requested local authorities to provide dossiers for the seven projects implemented by FLC.

Regarding Hoa Binh district, the District Economic and Infrastructure Department signed a contract with Khai Hoan Construction Consulting and Investment Joint Stock Company to manage the professional business of establishing planning schemes, amounting to nearly VND 170 million, which is inconsistent with regulations.

Additionally, from 2015 to 2022, the total budget for construction planning by the Department of Construction, Bac Lieu city, and Hoa Binh district exceeded VND 32 billion.

The Inspectorate of Bac Lieu province recommended that the Chairman of the Provincial People’s Committee direct the leadership of the Department of Construction, the Chairman and Vice Chairman of Bac Lieu city People’s Committee (according to each period), and the Chairman and Vice Chairman of Hoa Binh district People’s Committee to review and clarify responsibilities.