On November 5, the Land Fund Development Center (Hanoi Department of Natural Resources and Environment) organized an auction for the right to exploit 3 sand mines in the city with the total winning bid amounting to VND1,700 billion, tens, even hundreds of times higher than the starting price. In response to these irregularities, the Prime Minister requested clarification and strict handling of any violations.
Newly established business over 1 month
Regarding this issue, answering Thanh Nien , Major General Nguyen Thanh Tung, Deputy Director of Hanoi City Police, said that on November 5, at the Bac Trung Nam Joint Stock Auction Company (Cau Giay District, Hanoi), the above auction took place with 41 businesses requesting to participate.
The 3 sand mines auctioned have a total reserve of more than 6.1 million m3 , including: Chau Son mine (Ba Vi district), Lien Mac mine (Bac Tu Liem district) and Tay Dang - Minh Chau mine (Ba Vi district).
Major General Nguyen Thanh Tung, Deputy Director of Hanoi City Police
According to Major General Tung, Hanoi City Police proactively grasped the situation, collected information and documents related to the auction and assessed that the auction took place objectively, without detecting any signs of violations or bid collusion or price suppression.
Among the three winning bidder companies, KSP Investment, Trade and Service Company Limited (KSP Company) won the auction for Lien Mac sand mine with nearly 410 billion VND. Meanwhile, this company was first registered on September 26, headquartered in Ha Dong District (Hanoi) and has a charter capital of 50 billion VND.
Major General Tung said that based on legal regulations, regarding auction conditions, newly established enterprises do not have specific regulations on proving operational experience. Therefore, in the process of reviewing the conditions of the KSP Company's auction participation documents, the auction organizing committee did not set additional review criteria to avoid hindering participants.
The bank committed to provide more than 15,000 billion VND
In addition, before the auction, the Hanoi People's Committee approved the total investment capital of mineral exploitation projects, as a basis for evaluating the equity criteria of the units registering to participate in the auction of mineral exploitation rights in the city in 2023.
Accordingly, the total investment capital of the Lien Mac mine project in 2023 is 15,574 billion VND. Regarding this condition, on October 11, the Vietnam Joint Stock Commercial Bank for Investment and Development, My Dinh Branch, committed to providing credit to KSP Company in the entire amount of 15,574 billion VND until October 31, 2024. Therefore, KSP Company has guaranteed the ownership condition of 30% of the project investment capital.
A sand gathering place sucked from the Red River in Bac Tu Liem District (Hanoi)
According to Major General Tung, on November 21, the Office of the Hanoi People's Committee sent a document to the Department of Natural Resources and Environment and the Hanoi Inspectorate, assigning the Hanoi Inspectorate to inspect and review the entire survey of the current status, assessment of reserves and mineral quality for sand mines; inspect and review the entire auction process and criteria according to legal regulations.
The Department of Natural Resources and Environment is responsible for providing all documents and coordinating with the City Inspectorate. However, up to now, the Hanoi People's Committee has not issued a document notifying the conclusion of the inspectorate.
Major General Tung said that Hanoi City Police are coordinating with relevant agencies and units to grasp the situation, review and verify information and documents related to the above auction.
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