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Government inspectors uncover violations in residential zone project

Update: June, 02/2015 - 17:57
The subcontractor of Ba Diem residential zone in Hoc Mon District, An Thinh Construction and Investment Joint Stock Company, has been found committing many violations in the project. — Photo infonet.vn

HCM CITY (VNS) — Government inspectors have concluded that a subcontractor of Ba Diem residential zone in Hoc Mon District has committed many violations in the project.

The subcontractor of Ba Diem residential zone, An Thinh Construction and Investment Joint Stock Company, is a member of Construction Corporation No 1 under the Ministry of Construction.

According to government inspectors, An Thinh Company violated the Construction Law by outsourcing work for electrical substation and transformer systems to a local company, even though that company was not licensed to do so.

The inspectors also found that the two companies colluded with each another to overstate the cost of the project by VND24 billion (US$1.11 million).

In addition, An Thinh Company also violated the Law on Housing by mobilising VND108 billion ($5 million) from customers without gaining approval from the HCM City People's Committee.

The Government inspectors have ordered An Thinh Company to pay VND2780 billion ($129 million) in tax to the state.

The inspectors have requested the Construction Ministry to ask Construction Corporation No. 1 to direct An Thinh Company to punish those responsible for violations.

Despite repeated efforts, An Thinh Company officials remained unavailable for comment.

Built on an investment of VND100 billion ($4.6 million), the residential zone of Ba Diem is spread over 59,500sq.m. in Ba Diem Commune, Hoc Mon District. Reports suggest that although the project broke ground in September 2008, it has reached nowhere near completion.

Local people say the residential zone's unfinished condition has made it very difficult for them to travel on nearby roads due to pollution, especially during rain and hot weather. — VNS



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