The Inspector General Exposes Dabaco’s Housing Development Violations in Bac Ninh

Delayed Project

The Inspectorate of Bac Ninh province has just issued a notice of inspection conclusions on the observance of policies and laws for the investment project of building the Dabaco Lac Ve residential area (Dabaco Lac Ve residential area project) in Lac Ve commune, Tien Du district.

The Dabaco Lac Ve residential area project is invested by Dabaco Vietnam Joint Stock Group (Dabaco Group). The project has a total area of nearly 63,000 m2 and a total registered investment capital of over VND 177 billion.

According to the conclusion of the Bac Ninh Provincial Inspectorate, in terms of investment law compliance, the Department of Planning and Investment (PI) advised the People’s Committee of Bac Ninh province to issue an investment registration certificate, which lacked project objectives. Dabaco Group implemented the project slower than the progress specified in the investment registration certificate and the investment policy approval decision (the project has not yet completed the construction of houses on the land plots that must be built with exterior walls only).

Regarding compliance with housing laws, Dabaco Group did not have any documents registering as the project investor or submit capacity dossiers to the Department of Construction to carry out the procedures for consideration and evaluation as prescribed.

The People’s Committee of Tien Du district issued Document No. 676 dated August 24, 2012, approving the investment in the development of the residential area, which lacked a document from the People’s Committee of Bac Ninh province recognizing Dabaco Group as the project investor, as stipulated in Circular No. 16/2010 of the Ministry of Construction and the guidance of the Department of Construction on the order and procedures for implementing commercial housing projects.

The inspection conclusion also pointed out that, in terms of land law compliance, the Department of Natural Resources and Environment (DONRE) and Dabaco Group were slow in re-signing the land lease contract when permitted by the People’s Committee of Bac Ninh province to change the land use purpose according to regulations. However, the delay in re-signing the land lease contract did not affect the land rent to be paid. The responsibility lies with the leaders of DONRE and the advisory unit at the time of the project implementation.

Selling land before fulfilling financial obligations

The inspection conclusion shows that the document of Tien Du District Tax Office on land use levy payment did not include information on late payment of land use levy by Dabaco Group.

As a result, DONRE granted the Land Use Right Certificates for 110/110 land plots in the project to Dabaco Group without fulfilling financial obligations related to land (not paying late payment of land use levy), which was not in compliance with regulations.

At the same time, DONRE issued a notice determining that Dabaco Group met the conditions for transferring the land use right for 104/110 land plots, and in 2019, Dabaco Group transferred these 104 land plots, which was not in accordance with regulations.

Also according to the inspection conclusion, Dabaco Group has not strictly complied with the regulations on the time limit for payment of land use levy, late payment of land use levy, and non-agricultural land use tax.

Tien Du – Que Vo District Tax Office issued Notice No. 323/TB-TTHT-TB-TK dated February 12, 2020, calculating and determining an excess amount of over VND 40 million in late payment of land use levy.

Regarding the implementation of the project for the construction of technical infrastructure, Dabaco Group approved the total investment of the project in Decision No. 1920 dated December 4, 2018, including land use levy, which was not in accordance with regulations.

The calculation and acceptance of completed volume for settlement had some works and project management expenses that were not in accordance with regulations. The total amount deducted compared to the approved settlement was over VND 183.3 million.

At the time of construction, the contractor for the items of land leveling, road construction, rainwater drainage, wastewater drainage, cable technical trenches, and water supply was Dabaco Infrastructure Investment and Development Co., Ltd., which did not have a Certificate of Construction Capacity as prescribed.

Regarding the above shortcomings and shortcomings, the Provincial Inspectorate proposed to collect VND 183 million from Dabaco Group to the temporary holding account of the Provincial Inspectorate, awaiting handling due to incorrect settlement of construction and project management costs in the project of investing in the construction of technical infrastructure.

Direct the Inspection Team of the Department of Planning and Investment to consider and handle administrative violations by Dabaco Group for implementing the project slower than the progress specified in the investment registration certificate and the investment policy approval decision.

Regarding Dabaco Group, the Inspectorate requested that it seriously draw experience and organize the克服 of shortcomings and shortcomings as mentioned in the inspection conclusion. Strictly implement the provisions of law on investment, construction, housing, land, construction order, real estate business, and financial obligations to the State.

Only transfer the land use right, ownership of houses and other assets attached to the land after completing the construction of exterior walls according to the approved detailed planning and ensuring other conditions in accordance with the law (for land plots that must be built with exterior walls only).