Why did the inspector propose that Hanoi "terminate" the 2,000m2 project of the Steel Corporation?

Risk of budget loss

According to the announcement of the inspection conclusion on the conversion of land use purposes from production and business to land business and housing construction in the period of 2011-2019 of state-owned enterprises and equitized enterprises, the Government Inspectorate (GIA) pointed out many violations in the 2,291m2 land plot at 120 Hoang Quoc Viet (Cau Giay District, Hanoi) of Vietnam Steel Corporation (VNSteel).

Regarding the change of land use purpose and the fulfillment of financial obligations, the Government Inspectorate pointed out that the Hanoi People's Committee approved the money to change the land use purpose of the high-rise housing, office and service project at 120 Hoang Quoc Viet, which was not in accordance with the VNSteel equitization plan approved by the Prime Minister.

This leads to the total land use fee payable to the budget of area A (932m2) being 57,595 billion VND lower than the land use right value approved by the Ministry of Industry and Trade in the enterprise value at the time of January 1, 2010 when equitizing VNSteel. The risk of reducing the value of the equitized enterprise will lead to a corresponding reduction in the amount payable to the budget.

“The responsibility for the above shortcomings and violations belongs to the Hanoi People's Committee, relevant departments and branches including: Finance, Natural Resources and Environment, Tax Department and VNSteel,” the inspection conclusion stated.

"Shelved" for more than a decade, file transferred to police

Regarding the project implementation status, TTCP said that from May 21, 2012 to present, the high-rise housing, office and service project at 120 Hoang Quoc Viet has not been implemented.

“VNSteel and the land management agencies violated the 2003 Land Law and the 2013 Land Law regulating land recovery cases; Decree No. 43/2014,” the conclusion of the Government Inspectorate clearly stated.

In addition, the inspection agency also said that some people encroached on the land, seriously violating the provisions of the law on land management and use, but VNSteel and other management agencies have not yet thoroughly handled it, leading to the risk of losing land use rights.

Responsibility for the above shortcomings and violations belongs to VNSteel, Hanoi People's Committee, relevant departments and branches, and Cau Giay District People's Committee.

Based on the above violations, the Government Inspectorate recommends that the Hanoi People's Committee preside over the inspection, handling, and termination of the high-rise housing, office, and service investment project and land recovery at 120 Hoang Quoc Viet of VNSteel according to the provisions of law.

At the same time, direct the implementation of post-inspection handling of existing shortcomings, defects, and violations in land management and encroachment according to inspection conclusion No. 1916 (October 2014) of the Hanoi Department of Natural Resources and Environment.

The Government Inspectorate also recommended that the Ministry of Public Security receive records and documents for review, investigation, and handling according to the law for violations of the law at the high-rise housing, office, and service project at 120 Hoang Quoc Viet, Cau Giay District.

Specifically, the Hanoi People's Committee approved land use fees 57,595 billion VND lower than the land use right value approved by the Ministry of Industry and Trade in the enterprise value when equitizing VNSteel.

Second, the encroachment of land by some people has lasted for many years, seriously violating the law on land management and use, and has not been handled by VNSteel, Hanoi People's Committee, and relevant agencies according to the law, leading to the risk of losing land use rights.