Inside the land of the automobile factory converted into a house, the Government Inspectorate 'named' violations

11/27/2024 | 07:27

TPO - The Government Inspectorate concluded that the land facility at No. 53 Dong Anh town (Dong Anh district, Hanoi) managed and used by 1/5 Auto Company Limited was transferred by the enterprise without auction, and the land use purpose was changed to a housing project without the opinion of competent authorities.

Inside the car factory land converted into housing was 'named' by the Government Inspectorate for violations photo 1

Inspecting the restructuring of state-owned enterprises; converting land use purposes from production and business of state-owned enterprises, equitized enterprises to land business, housing construction (period 2011 - 2021) at the Ministry of Transport (MOT), the Government Inspectorate (GIA) pointed out many violations regarding real estate facilities in 53 Dong Anh towns (Dong Anh district, Hanoi) of 1/5 Auto One Member Co., Ltd.

Inside the land of the automobile factory converted into a house, the Government Inspectorate 'named' violations, photo 2

According to the inspection agency, the real estate facilities in 53 Dong Anh towns are established as state-owned. 1/5 Auto One Member Co., Ltd. is a state-owned enterprise, which is leased land by the state and pays annual fees for the purpose of using the land as production and business land, but the Ministry of Transport issued documents No. 8646 dated December 20, 2011 and 7119 dated July 18, 2013); the Corporation issued document No. 125 dated September 13, 2011 approving 1/5 Auto One Member Co., Ltd. to change the land use purpose from production and business land to housing construction when rearranging real estate facilities without the written consent of the Ministry of Finance, which is not in accordance with the provisions of Clause 3, Article 8 of Decision No. 86 dated December 22, 2010 of the Prime Minister.

Inside the car factory land converted into housing was 'named' for violations by the Government Inspectorate photo 3

At the same time, approving 1/5 Auto One Member Co., Ltd. to use the real estate facility to contribute capital to cooperate in investment with Vinalines Real Estate Joint Stock Company to establish a new legal entity to implement the 1/5 Commercial Service and Housing Area project is not in accordance with the rights and obligations of the land lessee paying annual rent as prescribed in Article 175 of the 2013 Land Law.

Inside the car factory land converted into housing was 'named' for violations by the Government Inspectorate photo 4

In addition, the Ministry of Transport issued document No. 7119 dated July 18, 2013, agreeing on the content for Dong Anh Urban Development Joint Stock Company to be obliged to pay 1/5 Auto LLC the amount of 213 billion VND, which is the value corresponding to the commercial advantage of the land, the assets on the land and support for relocating the factory to a new location.

Inside the car factory land converted into housing was 'named' for violations by the Government Inspectorate photo 5

1/5 Auto Company used 69.3 billion VND from the above amount to contribute capital to the charter capital of Dong Anh Urban Development Joint Stock Company, the remaining amount of 143.7 billion VND was used for the purpose of relocating and completing the new factory at Nguyen Khe Industrial Park, Dong Anh District. However, the amount of 213 billion VND collected from the land is of state origin, therefore the Ministry of Transport's agreement to use it as stated above is not in accordance with the guidance of the Ministry of Finance in Official Dispatch No. 14280 dated October 19, 2012 and is not in accordance with the principle of creating sources and using capital collected from the old location as stipulated in Clause 2, Article 3 of Decision No. 86/2010 of the Prime Minister.

Inside the car factory land converted into housing was 'named' for violations by the Government Inspectorate, photo 6

Also according to the Inspection Conclusion, the Hanoi People's Committee did not change the land use purpose, determined the land use fee for 1/5 Auto One Member Co., Ltd. to carry out the joint venture, but issued Decision No. 1881 dated April 17, 2018 to reclaim and hand over land at No. 53 Dong Anh town to Dong Anh Urban Development Joint Stock Company to carry out the 1/5 Residential Service Commercial Area project, which is not in accordance with regulations.

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Along with that, Hanoi People's Committee issued Decision No. 5808 dated October 26, 2018 to determine land prices by the surplus method with comparable assets that do not have similar characteristics to the appraised assets; did not anticipate and take into account the trend and level of fluctuations in market prices to estimate the project's selling price to match reality; the selling price used in development revenue is only the individual price of the comparable asset and not the average price, which is not in accordance with regulations...

Inside the car factory land converted into housing was 'named' for violations by the Government Inspectorate photo 8

“Thus, the real estate facilities in 53 Dong Anh towns managed and used by 1/5 Auto Company Limited transferred assets without auction, changed land use purposes without the opinion of competent authorities; the Ministry of Transport agreed on a relocation plan that was not in accordance with the guidance of the Ministry of Finance; the Hanoi People's Committee recovered land, allocated land, and determined land use fees that were not in accordance with regulations,” the inspection conclusion clearly stated.

Inside the land of the automobile factory converted into a house, the Government Inspectorate 'named' violations, photo 9

The responsibility for the above-mentioned existence belongs to the leaders of 1/5 Auto Company Limited, Hanoi People's Committee and the Ministry of Transport.

Inside the car factory land converted into housing was 'named' by the Government Inspectorate for violations photo 10

According to the advertisement, the 1/5 commercial service and housing project (commercial name Happy Land) at 53 Dong Anh town has a scale of nearly 7.7 hectares with 346 townhouses located near National Highway 3.

Inside the car factory land converted into housing was 'named' by the Government Inspectorate for violations photo 11

According to records, the project has been basically completed with many townhouses occupied.

Inside the car factory land converted into housing was 'named' for violations by the Government Inspectorate, photo 12

Inside the car factory land converted into housing was 'named' by the Government Inspectorate for violations photo 13

Inside the car factory land converted into housing was 'named' for violations by the Government Inspectorate, photo 14

Inside the car factory land converted into housing was 'named' for violations by the Government Inspectorate, photo 15

However, inside the project there are still dozens of villas with the rough exterior finished but left abandoned, overgrown with weeds.

Inside the car factory land converted into housing was 'named' for violations by the Government Inspectorate, photo 16

Some undeveloped plots of land are being used by people to grow vegetables.

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According to a survey, townhouses at the Happy Land Dong Anh project are being offered for sale at prices ranging from 75-90 million VND/m2 depending on location.

Dinh Phong

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