Thursday, February 27 2020


Gov’t Inspector orders HN strictly deal with Lã Vọng JSC’s violations

Update: January, 21/2020 - 09:00

A beer pub of the Lã Vọng Services and Trading Joint Stock Company in Trần Duy Hưng Street, Hà Nội. — Photo

HÀ NỘI — The Government Inspectorate of Việt Nam has ordered the Hà Nội administration to deal with violations relating to nine projects of Lã Vọng Services and Trading Joint Stock Company.

The main violations consist of changing the purpose of land use, constructing restaurants without permission, violating the Law on Construction as well as failing to share profits with the State following agreements.

The Hà Nội administration must send its report to Prime Minister Nguyễn Xuân Phúc before April 1, the inspectorate said.

Projects include hiring land at DX1, DX2, DX3, DX4 and CX2 area in an urban area southeast of Trần Duy Hưng Street; building technical infrastructure and housing in an urban area southwest of Road 70 in Nam Từ Liêm District; constructing a luxury housing project in Quốc Oai urban area, building offices and apartments in Xa La area, Hà Đông District; and upgrading the National Highway 6. 

To deal with violations, the inspectorate told the administration to direct the city’s Department of Finance and the city’s Tax Department to re-check land leasing prices at Trần Duy Hưng Street to avoid financial losses for the State budget.

The city was also required to review the entire planning of the land the company hires in the area and implement with the original purpose as leasing for parking and planting trees instead of using as a ground for running restaurants.

The inspectorate required the company to pay an additional of VNĐ125 billion (US$5.38 million) to the State budget to build technical infrastructure and housing in an urban area southwest of Road 70 in Nam Từ Liêm District. To build the project for the State, the company was given 14.5 hectares of land in exchange following an agreement. However, the investor only spent VNĐ400 billion ($17.2 million) to implement the project instead of VNĐ610 billion ($25.8 million) as the initial estimation.

The agency also discovered the company was allocated 27.5 hectares of land in Quoc Oai urban area project without bidding. This violates the regulations on investor selection for commercial housing projects.

The company is also appointed to implement the project to upgrade the National Highway 6 without bidding.

For the project in the Xa La area, Hà Đông District, the inspectors identified the company failed to share profits with the State following agreements.

The inspectorate said that the Department of Planning and Investment, Department of Planning and Architecture, Department of Finance and the People's Committee of Hà Nội were also blamed for the violations.

Under the conclusion No 106/TB-TTCP, signed by Deputy Inspector General Nguyễn Văn Thanh last Friday, Thanh conveyed the order of Deputy Prime Minister Trương Hòa Bình to request the city administration to strictly handle violations of any individual and organisation.—VNS



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