The Capital’s Call: Uncovering Housing Society Scandal

This is one of the findings from the Inspection Conclusion on the management and use of the first-floor area of the Worker’s Housing Area in Kim Chung Commune, recently published by the Hanoi City Inspectorate.

The Worker’s Housing Area in Kim Chung Commune, Dong Anh District, Hanoi (hereinafter referred to as the “Worker’s Housing Area”) is a social housing project funded by the city’s budget.

This pilot project, owned by the state, aims to meet the housing needs of workers employed in the Thang Long Industrial Park and its neighboring industrial zones.

The investors are the Hanoi Construction and Investment Joint Stock Company and the Vietnam Export-Import and Construction Corporation. The Hanoi Housing Management and Development One-Member Limited Company (the “Company”) has been responsible for managing, operating, and leasing the properties since 2007.

The Worker’s Housing Fund comprises 28 units, including 24 low-rise units (5 floors) and 4 high-rise units (15 floors). The total area of the first floor, which is assigned for management and leasing, exceeds 16,000 square meters.

According to the inspection conclusion, from 2010 to the end of 2019, the company unilaterally changed the function of areas designated as parking lots, electrical and water technical rooms, and main lobbies, leasing them to organizations and individuals for commercial services. The lease contracts were for a period of 3 years, with a rental rate of 33,000 VND/sqm/month (including VAT). Upon expiration, instead of reporting to the city and organizing an auction for the lease of these commercial service areas, the company continued to sign leases at the old rate until 2019.

Additionally, six units utilized areas designated as main lobbies, bicycle parking lots, security booths, waiting rooms, corridors, and post offices for purposes other than their intended design. The Company could not provide lease contracts for these units.

Notably, from 2017 to April 30, 2024, the Company failed to take measures to recover outstanding debts within the contract period (amounting to VND 290 million for two units). They neglected to reclaim the leased areas, allowing the tenants to continue occupying the spaces without a valid contract, resulting in additional unpaid rent of nearly VND 8.3 billion outside the contract. The total uncollectible amount is estimated at VND 8.5 billion, indicating potential violations of criminal law.

Furthermore, the management unit demonstrated a lack of responsibility and lax oversight of public assets. They failed to conduct inspections or take preventive measures to stop organizations and individuals from leasing the first-floor areas.

Specifically, the Company allowed the encroachment of sidewalks and external infrastructure within the Worker’s Housing Area premises. They permitted six units to utilize areas designated for main lobbies, bicycle parking, security booths, waiting rooms, corridors, and post offices on the first floor of 12 points in the 5-story building blocks (for which the Company could not provide lease contracts) for dining rooms, reception areas, waiting rooms, and meeting rooms, which is a violation of legal regulations.

In light of these violations, the City Inspectorate invited the City Party Committee’s Internal Affairs Commission, the City Police, and the City People’s Procuracy to analyze and evaluate the documents collected during the inspection. They unanimously agreed to transfer the case file and related materials regarding the Company’s violations to the Security Investigation Agency for further investigation.

In August 2024, the Inspectorate transferred the case file on the aforementioned violations to the Security Investigation Agency of the City Police.

Regarding administrative handling, the City Inspectorate proposed that the Department of Construction advise the Hanoi People’s Committee to extend the enforcement decision for the recovery of 20 out of 28 points that have not yet been returned to the Worker’s Housing Area in Kim Chung Commune. They also recommended inspecting the Company’s allowance of six units to use 12 points without lease contracts and reporting to the Hanoi People’s Committee for consideration and handling in accordance with regulations.

Following the extension of the enforcement period by the Hanoi People’s Committee, the People’s Committee of Dong Anh District should promptly organize the enforcement of the recovery of the first-floor areas in accordance with the law. If enforcement proves impossible, the People’s Committee of Dong Anh District should establish a case file against the units and individuals occupying these areas for the crime of intentional illegal possession of property. Concurrently, they should inspect, clear, and handle any violations as directed by the Hanoi People’s Committee.

Concerning personnel handling, the City Inspectorate proposed that the Hanoi People’s Committee direct the Chairman of the Hanoi Housing Management and Development One-Member Limited Company, the Director of the Department of Construction, and the Chairman of the People’s Committee of Dong Anh District to inspect and impose disciplinary actions on collectives and individuals involved in these violations.