A company in Dak Lak illegally "contracted" over 616 hectares of coffee to local people. In addition, when equitizing, the company "forgot" the people's assets on another 1,200 hectares of land.
Thang Loi Coffee Company Limited (now joint stock) has many violations in contracting and equitization - Photo: TRUNG TAN
On March 10, Tuoi Tre Online source reported that Dak Lak Province Inspectorate has just concluded, pointing out violations of Thang Loi Coffee One Member Co., Ltd. (now a joint stock company).
"Blank contract" 616 hectares of coffee land against regulations
According to the inspection conclusion, since 2004, the above company signed more than 1,100 "coffee planting association" contracts with households on 616.4 hectares of land, but did not spend money to invest in coffee planting but "contracted out" to the households.
Even though they did not invest, the company still demanded to collect fees and contracted products. Because of this "smart contract", for nearly 15 years now, the lawsuits have not ended.
According to the Dak Lak Provincial Inspectorate, the enterprise's assignment of 616 hectares of coffee land is not in accordance with Clause 2, Article 12 of Decree 135/2005/ND-CP because the enterprise did not participate in the investment.
In addition, according to the inspection conclusion, Thang Loi Coffee Company also has more than 1,200 hectares of other coffee that the enterprise has "contracted" (100% invested by the people) to the people. The total value of the enterprise on this 1,206-hectare area before equitization was determined to be more than 174.5 billion VND.
Of which, 51% belongs to the State capital, equivalent to more than 89 billion VND, people also invest 100%, calculated at 49% (about 85.5 billion VND) of the garden asset value.
However, in 2019, when determining the enterprise value, the assets contributed by the people to the garden on the contracted area were not included in the joint stock enterprise. This led to disadvantages for them in the equitization process, leading to additional complaints.
Proposal to reclaim "blank contract" land, put people's assets into shares
At about 5:30 a.m. on November 7, 2022, when Thang Loi Coffee Joint Stock Company sent people and vehicles to cut down coffee and durian trees previously contracted to Mr. Nguyen Thanh Giang (residing in Hoa Dong commune, Krong Pak district, Dak Lak province) to take land to contract to others, a fight broke out and people were illegally arrested - Photo: TRUNG TAN
From the conclusion, the Dak Lak Provincial Inspectorate believes that current regulations do not allow enterprises to lease land from the State without investing anything and yet carry out the assignment under Decree 135/2005. The Inspectorate recommends that the Dak Lak Provincial People's Committee reclaim 616.4 hectares of land that the above coffee company has "contracted out" and hand it over to the locality for management under Article 181 of the 2013 Land Law.
As for the 1,206 hectares of "contracted" land that has been put into equitization, the inspectors requested a review of the entire value of the orchards invested by the people. The enterprise must include the 49% capital contribution of the contracted households (more than 85.5 billion VND) in the value of the equitized enterprise.
The Inspectorate also requested the Dak Lak Provincial People's Committee to review the responsibility of the company's leaders over the years when land allocation was not in accordance with regulations and did not ensure the rights of households.
In addition, direct the collection of illegal money amounting to 18.7 billion VND, including illegal benefits gained from illegal land allocation activities; recover 9.2 billion VND of state capital lost during the equitization process, especially the value of land use rights and assets on land that have not been fully calculated.
In addition, the company must review the equitization plan, especially determining the value of land use rights and assets on land, to avoid loss of state assets.
The process of formation and complaints at Thang Loi Coffee Company
Thang Loi State Farm was established in 1977.
By 1987, the unit implemented a policy of allocating land to households according to the policy of encouraging coffee planting.
In 2004, the unit converted the contract model to a coffee planting contract. From there, many violations arose in land use and coffee garden contracting, leading to persistent complaints.
Accordingly, in 2011, households began to petition for land use rights. In 2018, the State Audit Office of Region XII pointed out shortcomings in land management and contract allocation, requiring enterprises to re-issue legal contracts, but this was dragged on.
On August 17, 2023, many people had a dialogue with Chairman of Dak Lak Provincial People's Committee Pham Ngoc Nghi and requested a comprehensive inspection of this enterprise - Photo: TRUNG TAN
In 2019, the company became Thang Loi Coffee Joint Stock Company, but old disputes and complaints were not resolved and new ones arose.
In 2022, the company proposed a new contract plan but it was not agreed upon by the households.
On August 17, 2023, many people had a dialogue with Chairman of Dak Lak Provincial People's Committee Pham Ngoc Nghi and requested a comprehensive inspection of this enterprise.
On February 28, 2025, Dak Lak Provincial Inspectorate concluded on violations in land management and equitization.
Source: https://tuoitre.vn/doanh-nghiep-ca-phe-khoan-trang-khoan-khon-sai-pham-gi-20250310103643829.htm
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