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The Government Inspector Uncovers 12 Land Lots Misappropriated at the Ministry of Transport

27 November, 2024

An inspection into the conversion of land for business and residential purposes at several enterprises affiliated with the Ministry of Transport revealed 12 land lots and properties with violations.

Specifically, at the property located at 108-112B-114 Hong Ha Street, Ward 2, Tan Binh District, Ho Chi Minh City, the Ministry of Transport and the Municipal People’s Committee allowed Tan Son Nhat Airport Service Joint Stock Company (Sasco, UPCoM: SAS) to collaborate with Novaland Group Joint Stock Company (HOSE: NVL) to develop a commercial and high-end apartment complex (commercially known as Botanica Premier) without Sasco obtaining the Land Use Right Certificate, contrary to the 2013 Land Law. The project had not completed the procedure for changing the land use purpose and determining the land price and had not paid for the land use before collaborating, investing in construction, and selling apartments to customers who have already moved in, which is not in compliance with the prescribed order of construction investment.

Regarding the property of 11,276m2 located in Cluster 9, Phu Thuong Ward, Tay Ho District, Hanoi, there has been a lack of inspection and encouragement to implement the plan for rearranging and handling state-owned houses and land in accordance with regulations. The project’s land retrieval and allocation for the construction of a residential area also did not follow the proper procedures.

In the case of the property at No. 1 Ben Van Don, District 4, Ho Chi Minh City, Vietnam Maritime Shipping Joint Stock Company (HNX: VSA) agreed to contribute VND 46.5 billion according to a written agreement in 2009 (before paying land rent once) to invest in building a production and business management center, which is not in accordance with the 2003 Land Law. The capital contribution was not established as a specific plan to be reported to the Vietnam Maritime Corporation – Joint Stock Company (VIMC, UPCoM: MVN) for approval as prescribed. Vietnam Maritime Shipping Joint Stock Company has divested its entire capital from Vietnam Maritime Real Estate Joint Stock Company and is no longer responsible for the project, which is currently halted.

With regards to the property at 428 Nguyen Tat Thanh Street, District 4, Ho Chi Minh City, the Vietnam Shipping and Chartering Joint Stock Company (UPCoM: VST) signed an investment cooperation contract to implement the apartment project combined with commercial services at Zone II, 428 Nguyen Tat Thanh (currently known as Lancaster Lincoln) with Trung Thuy Lancaster Joint Stock Company without ensuring the proper procedure, signing the cooperation contract before the time. The Vietnam Shipping and Chartering Joint Stock Company has the full range of land use rights as prescribed by the 2013 Land Law.

The project has been audited by the State Audit Office and recorded in the Minutes dated 11/09/2017, which includes a surcharge for the increase in land use value of VND 233.7 million determined by the Ho Chi Minh City People’s Committee. Additionally, the Ho Chi Minh City People’s Court issued a verdict in 2018 (initiated by Lancaster Tan Thuan Co., Ltd.) obliging the Vietnam Shipping and Chartering Joint Stock Company to sign a contract for transferring the land use right and complete the procedures for transferring the land with an area of 2,165m2 at 428 Nguyen Tat Thanh to Lancaster Tan Thuan Co., Ltd. The project has been halted for many years, causing a waste of social resources.

As for the property at 430 Nguyen Tat Thanh Street, District 4, Ho Chi Minh City, the Municipal People’s Committee assigned the Saigon Port Company and the One-Member Limited Liability Company of District 4 Public Service to implement the high-rise housing project at 430 Nguyen Tat Thanh (currently known as Lancaster Lincoln) with an area of 4,625m2. The two companies transferred the project by agreement to Trung Thuy Lancaster Joint Stock Company for a value of VND 150 billion, which is higher than the value established by the unit’s price assessment according to the market price of VND 18.8 billion. However, the transfer of the 430 Nguyen Tat Thanh project was not organized by the District 4 Public Service Company through an auction as prescribed. The project has been halted for many years, causing a waste of social resources.

Lancaster Lincoln Project Perspective

For the land lot at 215 Le Loi Street, Vinh City, Nghe An Province belonging to Cienco 4 – Joint Stock Company, according to the conclusion, the parent company – Cienco 4, transferred the land use right of the linked villa area (26 land lots) with a Land Use Right Certificate and an area of over 4,729m2 to the Central Vietnam Comprehensive Installation Joint Stock Company for a transfer price of VND 30.4 billion without price assessment according to the market price and auction as prescribed.

Regarding the land transfer project at 14 Phan Chu Trinh, Hue City of Cau 1 Thang Long Joint Stock Company with an area of 1,138 m2, the Vietnam Water Resources Construction Consultancy Joint Stock Company did not inspect to ensure that Cau 1 Thang Long Company hired a unit to assess the construction of a plan and starting price for the auction as prescribed. The transfer also did not obtain the agreement of the Ministry of Transport and the Ministry of Finance as prescribed.

For the property at 16-18 Phan Chu Trinh, Hanoi, Ngo Gia Tu Mechanical Company implemented capital contribution contrary to regulations. The Ministry of Transport approved the transfer of all shares without the opinion of the ministries and branches. The Hanoi People’s Committee also retrieved the land, handed over the land, and determined the land use fee incorrectly according to the regulations.

Regarding the property at 53 Dong Anh Town, Dong Anh District, Hanoi managed and used by Auto15 One-Member Limited Liability Company (Auto15), the company transferred assets without an auction and changed the land use purpose without the approval of competent authorities. The Ministry of Transport also agreed on the relocation plan, which was not in line with the guidance of the Ministry of Finance. The Hanoi People’s Committee retrieved the land, handed over the land, and determined the land use fee incorrectly according to the regulations.

For the property at km 9+500 Nguyen Trai (now 53 Trieu Khuc), Thanh Xuan District, Hanoi, the Ministry of Transport and Hoa Binh Auto Joint Venture Company Limited have not arranged the house and land according to regulations. The Hanoi People’s Committee changed the land use purpose and assigned the project to an enterprise that did not have financial capacity and did not have the opinion of the competent authorities. They also determined the land use fee incorrectly according to regulations.

In the case of the property at 44 Trieu Khuc Street, Thanh Xuan Nam Ward, Thanh Xuan District, Hanoi of Hoa Binh Auto Mechanical Joint Stock Company, the Hanoi People’s Committee changed the land use purpose, which is not in line with the approved plan, and did not retrieve and auction the land as well as determine the land use fee correctly according to regulations.

As for the property of 23,742m2 at 199 Minh Khai, Hai Ba Trung District, Hanoi of the Mechanical Construction Factory, the land is planned as security land under the management of the Technical Logistics General Department – Ministry of Public Security, but the land procedures have not been completed as prescribed.

Thu Minh