A number of departments in Quang Nam province have been asked to conduct self-criticism regarding irregularities in the low-income housing project.
A series of irregularities at a project that has been stalled for over a decade.
In 2023, the Quang Nam Provincial Inspectorate issued an inspection report clearly indicating that the management of the low-income housing project in the Dien Nam - Dien Ngoc Industrial Park, Dien Ban town, by STO Agricultural and Rural Investment Consulting and Sports Tourism Services Joint Stock Company (abbreviated as STO Company) as the investor, revealed many weaknesses in financial capacity and project management, leading to the project being delayed for many years without completion. Project components remain unfinished and are showing signs of damage and deterioration.
The project's components are still unfinished and are showing signs of damage and deterioration.
Furthermore, the developer has transferred land use rights (through capital contribution contracts) to some households for housing construction even before the project is completed, resulting in inadequate living conditions such as lack of electricity and clean water.
Furthermore, STO Company showed signs of defrauding people who bought land in the project, and defrauding businesses that invested in the project (the main responsibility lies with Mr. Tran Chien Thang, former Chairman of the Board of Directors of STO Company).
Regarding the project's progress, the Quang Nam Provincial Inspectorate reported that it has exceeded the deadline by 50 months according to the investment registration certificate (the project completion deadline was August 2018). The situation from 2019 to the present remains unchanged, and some components have shown signs of serious deterioration.
Regarding the 1/500 detailed planning, STO Company did not implement the revised master plan for the project to proceed with construction after the 1/500 detailed planning was adjusted. However, the company continued construction of two apartment complexes without a basis for construction, such as the absence of a master plan for the project. On land plots N-01 and N-02, planned for apartment construction, two roads and two drainage ditches were constructed, which are not included in the approved 1/500 planning map.
Regarding the construction permit: The content of the permit is no longer relevant and has expired. However, STO Company is still illegally constructing two apartment blocks, A2 and A4, belonging to phase 3.
When will the project restart?
After a long period of inactivity, in early December 2024, the People's Committee of Quang Nam province agreed to allow STO Company to continue implementing the investment and construction of the low-income housing project.
The People's Committee of Quang Nam province has agreed to allow STO Company to continue implementing this project.
The People's Committee of Quang Nam province requires STO Company to develop a financial plan to implement and complete the project and a commitment to the project completion schedule for submission to the Provincial People's Committee and the Department of Planning and Investment for consideration before approval for an extension of the project implementation deadline.
In addition, the investor must prepare the necessary procedures to request an extension of the project implementation schedule as well as an extension of the land use period, and submit them to the competent authority for consideration and decision.
Notably, the Quang Nam Provincial People's Committee requested STO Company to focus on resolving all conflicts with joint venture and affiliated partners related to the project implementation. STO Company is not allowed to unilaterally cancel the value of assets of legally invested entities in the project without a satisfactory solution between all parties involved before the project is allowed to continue (including Phu Gia Thinh Construction and Real Estate Joint Stock Company, Lam Son Limited Company, and Dat Bien Vang Investment Consulting Joint Stock Company...).
The Chairman of the People's Committee of Quang Nam province requested the Departments of Planning and Investment, Natural Resources and Environment, and Construction to review their responsibilities related to the violations pointed out in the conclusion of the Chief Inspector of the province. Specifically, the Department of Planning and Investment was "named" for failing to promptly detect and handle administrative violations when the project was behind schedule. The Department of Natural Resources and Environment did not fully fulfill its responsibilities in inspecting and handling land-related violations. The Department of Construction did not fully fulfill its responsibilities in detecting and handling administrative violations when STO Company illegally constructed two blocks belonging to phase 3 of the project.
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