HCMC – The HCMC Inspectorate has applied administrative penalties for 21 organizations and individuals and passed the files of seven cases to the police for further investigation. This follows the inspection of land use purpose conversion of state-owned enterprises and enterprises equitized between 2011 and 2021.
At the Government Inspectorate’s request, the HCMC Inspectorate inspected state-owned and equitized enterprises under the management of the HCMC People’s Committee.
Between 2011 and 2021, enterprises converted 70 land lots with a total area of 1.4 million square meters into land used for trading and building apartments. No land use purpose conversion project was recorded during 2019-2021.
Some 28 land lots with an area of six million square meters were inspected and eight inspection conclusions were issued, recovering VND6.5 billion and transferring an amount of VND21 billion to an escrow account of the Investigation Security Agency under the Ministry of Public Security.
Meanwhile, administrative penalties were applied for 21 organizations and individuals, and files of seven criminal cases were handed over to the police department to handle.
The inspection conclusion revealed that public land use purpose conversion violations occurred when enterprises or project owners had transferred or contributed capital by assets attached to the land, then transferred the rights of the leased land or project development to their partners so that they could have full capacity over the project.
State-owned enterprises’ capital contribution to a joint venture or to establish a new joint venture for implementing a new realty project was originally to transfer the whole or part of the project without opening a bidding procedure or auctioning assets.
A state-owned enterprise even used the business cooperation contract to update the revised information on the land use right certificate without the approval of the competent authority.
According to the inspection conclusion, lack of business advantage evaluation before contributing capital and failure to use leased land in line with the approved purpose are the other violations found at the state-owned enterprises.