Illegal Sand Mining Auction in Quang Nam: Initiating Legal Proceedings for Violations of Auction Regulations

Colonel Nguyen Ha Lai, Deputy Director and Head of the Investigation Police Agency of Quang Nam Provincial Police, shared the following information during a meeting between the Chairman of Quang Nam People’s Committee and departments, sectors, and mineral enterprises in the province on May 25th:

According to Colonel Lai, the police force is currently coordinating with functional agencies to inspect and tightly control the exploitation and transportation of construction mineral resources.

At present, the Provincial Police Director has directed the monitoring and handling of illegal mineral exploitation, transportation, storage, and trading. Over time, several cases have been handled, investigated, and are undergoing further investigation.

Regarding the auction of a VND 370 billion sand mine in Dien Tho commune, Dien Ban town, Colonel Lai informed that a case had been initiated for violations of regulations on auctions. He stated, “The Provincial Police, in coordination with the Procuracy and Court, have unanimously decided to initiate a case for violations of auction regulations. At least three individuals will be prosecuted this week in connection with violations of auction regulations.”

Colonel Lai added that after this sand mine auction, the police force has been directed to pay close attention to the dossiers of all auctions. If there are signs of collusion or price manipulation, the police will intervene.

Previously, as reported by Tien Phong, on October 18, 2024, Hoa Thuan Partnership Auction Company (the unit hired by Dien Ban Town’s Department of Natural Resources and Environment to conduct the auction) organized an auction for the right to exploit ordinary construction sand mineral resources at the mine marked DB2B, with an area of 6.04 hectares and an expected resource of 159,000 cubic meters of sand.

With a starting price of just over VND 1.2 billion, after 20 hours and 200 rounds of bidding, Quang Da JSC was the winning bidder with a price of over VND 370 billion.

Upon receiving this information, the Chairman of the Quang Nam People’s Committee instructed the functional branches to clarify the situation and requested the police to investigate the unusual high bidding price at the auction.

On December 25, 2024, the Inspectorate of the Quang Nam Provincial Department of Justice issued a decision to fine Quang Da JSC VND 17 million for the administrative violation of “providing false information and documents to register for participation in the auction and participate in the auction.”

On January 7, the leadership of Dien Ban Town People’s Committee (Quang Nam province) signed a decision to annul the auction results for the exploitation of mineral resources at the DB2B mine in Dien Tho commune, Dien Ban town.

According to the Provincial Police leadership, in addition to controlling the exploitation, the police will monitor and handle illegal transportation. All trucks transporting sand and gravel on the road will be inspected by the traffic police, and if they cannot prove the origin of the minerals, they will be handled according to regulations. This is to control both the input and output of mineral resources.

“In addition, through the feedback from enterprises, we have learned that there are cases of enterprises exploiting and selling sand without invoices, which is a violation of the law. From now until the end of the year, the police force, under the direct guidance of the Deputy Director of the Provincial Police and Head of the Investigative Agency, will direct the professional departments to monitor, supervise, detect, and strictly handle any violations,” Colonel Nguyen Ha Lai affirmed.