Hundreds of Billion-Dong Villas Left Abandoned, Bac Ninh Construction Department to Impose Penalties
The Bac Ninh Construction Department has announced its intention to take administrative action against two companies, Binh Duong Trading and Investment Joint Stock Company (Binh Duong Company) and De Tam Joint Stock Company (De Tam Company), following the conclusion of an inspection by the Bac Ninh Provincial Inspection Agency regarding the construction and business investment project of VSIP Bac Ninh urban area and service area.
According to a representative of the Bac Ninh Construction Department, “The Provincial Inspection Agency has issued invitations to the two aforementioned enterprises for a meeting, and has also provided relevant documents. It is expected that this week, we will meet with all parties involved to finalize the violations. After that, administrative penalties for the violations will be determined.”
Previously, as reported by VOV Online Newspaper, VSIP Bac Ninh Company Limited assigned part of the construction and business investment project of VSIP Bac Ninh urban area and service area to De Tam Company and Binh Duong Company. However, the process of transfer and development of the two projects resulted in multiple violations, leaving hundreds of billion-dong villas abandoned and unused.
The inspection report issued by the Bac Ninh Provincial Inspection Agency regarding these two projects revealed a series of violations related to land investment, transfer, and project implementation.
According to the report, the completion progress of construction works on the land of these two projects was determined to be within 2021. However, up until now, neither of the projects has been completed or handed over for use. The investors have also failed to adjust the project’s progress according to regulations.
VSIP Bac Ninh Company signed a transfer contract for part of the VSIP Bac Ninh urban area and service area project with De Tam Company before obtaining the consent of the Chairman of the Bac Ninh Provincial People’s Committee.
In addition, VSIP Bac Ninh Company transferred the land to De Tam Company and Binh Duong Company before the Bac Ninh Provincial People’s Committee made a decision to revoke the land and transfer the land in accordance with the Land Law 2013.
Regarding the real estate business conditions, the inspection results confirmed that in 2019, De Tam Company signed 27 principle contracts to prioritize the registration and preferential rights to purchase land lots in the project for the parties involved in raising funds without meeting the conditions for raising funds according to the Construction Department’s announcement, thus violating the provisions of the Housing Law.
Meanwhile, Binh Duong Company received financial obligation guarantees from the VietinBank – Hanoi branch before the company sold housing formed in the future for 91 transferred lots in 2023. The financial obligation guarantees have not yet been fully provided for 155 lots transferred by the company in 2022.
The inspection also revealed errors in the entire infrastructure acceptance of De Tam Company’s project. All acceptance records mistakenly recorded the acceptance location. The inspection team re-calculated based on the construction design drawings provided by the investor, resulting in a total difference of VND 10.319 billion.
At Binh Duong Company’s project, the estimate was incorrectly applied for material unit prices and some work items were not properly quantified. The inspection team deducted the discrepancies from the estimate documents provided by Binh Duong Company, resulting in a total amount of nearly VND 1.5 billion.
Apart from recommending the Bac Ninh Construction Department to inspect and handle the related violations of De Tam Company and Binh Duong Company, the Bac Ninh Provincial Inspection Agency also suggested that the Từ Sơn City People’s Committee enhance state management of construction order, inspect, review, and handle violations at these two projects.
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