00:27 (GMT +7) - Thursday 14/12/2017

Property

Government Inspectorate uncovers major financial irregularities in land

Released at: 18:12, 27/07/2017

Government Inspectorate uncovers major financial irregularities in land

Kim Van - Kim Lu project (Illustrative image from kimvankimlu.net)

Inspections reveal irregularities totaling $71 million in 38 projects in Hanoi.

by Ngoc Lan

The Government Inspectorate has detected financial irregularities in land totaling VND1.562 trillion ($71 million) in 38 projects in Hanoi.

Some investors have not paid land use fees prior to building apartments for sale, resulting in a loss to the State budget of VND733 billion ($33.3 million), such as plot CT2 at the Kim Van - Kim Lu project.

The Government Inspectorate inspected ten projects, all of which had violated construction planning. Projects included FLC Landmark Tower, owned by FLC Land, the Dich Vong new urban area invested by the Tu Liem Urban Development JSC, and the Kim Van - Kim Lu new urban area invested by the Construction Joint Stock Company No.2 (Vinaconex 2).

The Inspectorate said that approval from the Hanoi Department of Planning and Architecture of architectural plans that did not comply with the law led to many investors benefitting from not having to pay land use fees or land rentals, causing losses to the State budget.

Hanoi announced plans last year to conduct inspections and handle land management and use at all levels from 2016-2020. This year, the Hanoi Department of Natural Resources and Environment partnered with the city’s inspectorate to organize inspections of administrative procedures regarding land use at two district-level units. In 2018 the city plans to focus more on industrial zones. In 2019, inspections will be conducted on land management and use outside of industrial zones. In 2020, the plan involves the legal observance of land laws in land management and its use for cultivation.

The Prime Minister previously approved a scheme to “Strengthen the Handling of Violations in Land Management and Use to 2020”, with the objective of implementing solutions to overcome difficulties, improve detection, and resolve all violations in land management and use, bolstering the effectiveness of land laws and preventing violations nationwide.

The scheme will inspect administrative procedures for land use at all levels this year and will then, as Hanoi has been doing, focus on the inspection of land management and use at industrial zones and economic zones in 2018. In 2019, the scheme will improve the inspection of land management and use outside of industrial zones. In 2020 the scheme will inspect legal observance of land laws in land management and use for cultivation.

Inspection authorities include the General Department of Land Management and the Departments of Natural Resources and Environment in all cities and provinces.

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