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State Audit pinpoints land, finance violations at Hancorp
The Saigon Times
Tuesday,  Dec 15, 2020,19:11 (GMT+7)

State Audit pinpoints land, finance violations at Hancorp

The Saigon Times


The multipurpose residential complex project invested by Hancorp in the Thang Long International Village in Hanoi. The State Audit of Vietnam has pointed out multiple land and finance violations of Hancorp - PHOTO: DTO

HCMC – The State Audit of Vietnam (SAV) has uncovered many land and finance violations at the Hanoi Construction Corporation (Hancorp) and asked the firm to pay some VND200 billion to the State budget.

According to a report of SAV, Hancorp was handed over land lots at the Diplomatic Quarter in Hanoi’s Tay Ho District in 2008 but has yet to pay land rents and land use fees, the local media reported.

At the Que Vo new urban area project in Bac Ninh Province, Tay Ho Company, a subsidiary of Hancorp, has yet to pay the fee for using 9.9 hectares of land for years. Hancorp has also failed to pay the land use fee for a 5,000-square-meter land lot in Hanoi’s Ha Dong District since 2001.

As for a multipurpose residential complex project in the Thang Long International Village, Hancorp has completed the project for years but has yet to hand over a 6,100-square-meter sports area and a 400-square-meter kindergarten at the project site to the Hanoi government for management as directed by the prime minister.

According to SAV, Hancorp has also committed multiple violations in its investment activities. At a commercial housing project in association with services and trade at 2.6 Le Van Luong Street, Construction No.1 Joint Stock Company, under Hancorp, changed the use purpose of two technical floors for commercial purposes without seeking permission. The company owes VND10.8 billion in land use fees.

Auditors also detected loopholes in the management of investments in three projects invested by Hancorp, including the N01-T8 multistory housing project, the N04.A official residence and trade project and a villa project in the Diplomatic Quarter.

During the execution of the three projects, the total investment was calculated inaccurately, leading to the higher claim of investment. In addition, SAV also pointed out the lack of official acceptance agreements, project quality management dossiers, timesheets and documents on the payment of salaries for workers.

The difference in investments in these projects was more than VND61 billion. SAV asked Hancorp to pay back VND5 billion to the State budget and reduce payments by VND12.7 billion.

SAV’s report also showed that despite earning profits, Hancorp failed to pay dividend to the State over the past two years. Therefore, SAV asked Hancorp to pay more than VND167 billion in dividend for 2018 and 2019 to the State budget.

After auditing Hancorp and five subsidiaries, SAV required the parent company to pay VND25.8 billion to the State budget, including value added tax and personal and corporate income tax.

In addition, the company must adopt measures to correct its errors and shortcomings, such as opening a term deposit account to transfer the apartment maintenance cost for buyers and lessees in line with the law, clarifying the responsibility of individuals and units relating to overdue and irrecoverable debts and closely supervising the investment of the parent company.

SAV also proposed the Hanoi government direct the relevant departments and agencies to work with Hancorp to receive a 5,000-square-meter land lot in Kien Hung Commune of Ha Dong District and take back the CC1 land lot in the Diplomatic Quarter project and hand it over to the municipal Police Department to build the headquarters of the police agency of Xuan Dinh Ward of Bac Tu Liem District.

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Deputy Editor-in-Chief: Pham Huu Chuong
Managing Editor: Nguyen Van Thang.
Assistant Managing Editor: Pham Dinh Dung.
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