SeaSun Group Addresses Unaccounted Transfer of VND 10 Million to Former Dong Hoi City Land Fund Development Center

The Chief Inspector of Quang Tri Province has issued a decision concluding an inspection into the compliance with legal regulations on investment, construction, land, and financial obligations for the commercial housing project in the southwest area of Ly Thanh Tong Street, from F325 Road to Truong Phuc Phan Road, in the former Dong Hoi City, now Dong Thuan Ward.

The inspection revealed that the former Quang Binh Province’s Department of Construction advised the People’s Committee of Quang Binh Province to approve the investment policy in Document No. 912/UBND without prior approval from the Provincial People’s Council. This action violated Decree No. 99/2015/NĐ-CP dated October 20, 2015, issued by the Government, which details and guides the implementation of certain provisions of the Housing Law.

Additionally, it was determined that Son Hai Group JSC and the Dong Hoi Land Fund Development Center failed to adequately verify compensation and site clearance expenses. As a result, Son Hai Group JSC overpaid more than 10 million VND to the Dong Hoi Land Fund Development Center.

In response, Son Hai Group officially stated that the compensation and site clearance for the project were handled by the Dong Hoi Land Fund Development Center. The process has been ongoing and is not yet complete. Son Hai Group emphasized that each payment was made based on requests from the Dong Hoi Land Fund Development Center and that all payments were timely, complete, and in accordance with the requested amounts.

“Son Hai Group does not have the authority to audit the finances of the Land Fund Development Center, so we cannot determine if there is a surplus of 10.1 million VND in their account,” the group stated.

In a discussion with *Thanh Nien*, Mr. Nguyen Luong Binh, Chief Inspector of Quang Tri Province, commented that Son Hai Group’s overpayment of more than 10 million VND should be commended. “If a company overpays, the management board should either refund the excess to the company or deposit it into the budget. Allowing the surplus to remain in the account is incorrect. The issue is not severe, but it needs to be addressed,” Mr. Binh emphasized.

Further analyzing the inspection findings, Mr. Binh explained that on May 26, 2017, the People’s Committee of Quang Binh Province approved the project before the Provincial People’s Council gave its consent on October 5, 2017. This was due to the project leaders and the Department of Construction seeking and receiving approval from the Standing Committee of the Provincial People’s Council. However, the formal approval by the Council could only be presented during the final session of the year in October.

“While there was a procedural violation in approving the investment before the Council’s decision, the Standing Committee had already given its consent. The issue is procedural rather than a serious error. Therefore, the inspection decision only notes the advisory shortcomings of the Department of Construction and does not accuse the People’s Committee or the investor of any legal violations. Nonetheless, it is the duty of the inspection team to identify and report all violations, regardless of their scale,” Mr. Binh stressed.

The commercial housing project in the southwest area of Ly Thanh Tong Street is developed by Son Hai Group JSC, with a total investment of 500 billion VND. The project is scheduled to run from 2017 to 2025, aiming to create a modern residential area with complete urban infrastructure.

The project is designed to accommodate approximately 1,100 residents, with a construction density of 75%. Of the 500 billion VND, 143 billion VND is allocated for technical infrastructure, 332 billion VND for housing construction (rough construction), and 25 billion VND for site clearance compensation.