A series of departments in Quang Nam were asked to review their involvement in violations at the Low-Income Housing Project.
A series of violations at a project 'suspended' for more than a decade
In 2023, the Quang Nam Provincial Inspectorate issued an inspection conclusion and pointed out that the management of the Housing Project for Low-Income People in Dien Nam - Dien Ngoc Industrial Park, Dien Ban Town by the 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 prolonged for many years but still not completed. The project items are still unfinished and are showing signs of damage and deterioration.
The project items are still unfinished and showing signs of damage and deterioration.
In addition, the project has not been completed yet but the investor has transferred land use rights (through capital contribution contracts) to a number of households to build houses, leading to a lack of living conditions such as: no electricity, no clean water...
In addition, STO Company has signs of defrauding people who bought land in the project and defrauding businesses that invested in the project (the main responsibility belongs to Mr. Tran Chien Thang, former Chairman of the Board of Directors of STO Company).
Regarding the project progress, the Quang Nam Provincial Inspectorate informed that it has been 50 months overdue according to the progress in the investment registration certificate (the project completion deadline is August 2018). The current status from 2019 to present has not changed, some items have shown signs of serious degradation.
Regarding the detailed planning 1/500, STO Company did not design and adjust the master plan of the project to implement the construction after the detailed planning 1/500 was adjusted. However, the unit continued to construct 2 apartment buildings when there was no basis for construction such as not having a master plan of the project. At land plots N-01 and N-02, which are planned for the construction of apartment buildings, there were 2 traffic roads and 2 drainage ditches that were not included in the approved 1/500 planning map.
Regarding the construction permit: The license content is no longer appropriate and has expired. However, STO Company still illegally constructed two apartment buildings A2 and A4 in phase 3.
When will the project restart?
After a long period of "standing still", 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 Housing Project for low-income people.
Quang Nam Provincial People's Committee agreed to allow STO Company to continue implementing this project.
Quang Nam Provincial People's Committee requested STO Company to develop a financial plan to complete the project and a commitment to the project completion schedule to submit to the Provincial People's Committee and the Department of Planning and Investment for consideration before being approved to extend the project implementation schedule.
In addition, the investor must prepare procedures to request an extension of the project implementation schedule as well as an extension of land use period to submit to the competent authority for consideration and decision.
Notably, the People's Committee of Quang Nam province requested STO Company to focus on resolving conflicts with joint venture and association partners related to the implementation of the project. It is not allowed to arbitrarily cancel the asset value of units that have legally invested in the project when there is no satisfactory solution between the parties participating in the project implementation before the project is allowed to continue (including Phu Gia Thinh Construction and Real Estate Joint Stock Company, Lam Son Company Limited, Dat Bien Vang Investment Consulting Joint Stock Company...).
The Chairman of the Quang Nam Provincial People's Committee 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 Provincial Inspector. 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 has not fully performed its responsibilities in inspecting and handling land violations. The Department of Construction has not fully performed its responsibilities in detecting and handling administrative violations when STO Company illegally built 2 blocks in phase 3 of the project.
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