The problem of 'brokers' in land auctions has not been resolved yet.

On the afternoon of October 11, the Provincial People's Council's Legal Committee supervised the auction of land use rights at IPA International Auction Joint Stock Company according to the 2019 supervision program. Photo: Mai Hoa

The issue that the monitoring team is most concerned about is solving the "broker" situation in land auctions. According to Mr. Nguyen Minh Hieu - Director of IPA International Auction Company, the land use rights auction activities in the past have not overcome the situation of "broker" land; although the process of collecting documents has seen some familiar faces, there is no regulation prohibiting these cases from submitting documents for auction, the company only serves as a reminder.

However, according to Thai Thi An Chung, Deputy Head of the Provincial People's Council's Legal Committee, public opinion has long held that the situation of negotiation and collusion to lower prices in land auctions is due to auction units disclosing confidential information on the list of people interested in the auction or colluding with "brokers".

Mr. Nguyen Quoc Khanh - General partner of the company talks with the monitoring team. Photo: Mai Hoa

This issue was confirmed by Mr. Nguyen Quoc Khanh - General Partner of the company, that no unit performing the auction task disclosed information or colluded with brokers.

However, right before the auction, the land brokers themselves determine how many people want to bid on the same plot, on that basis they negotiate and agree on the auction price to share the profit, and the people themselves also want to negotiate to get a cheaper price without participating in the auction independently to the end.

Therefore, to overcome this situation, Mr. Nguyen Quoc Khanh said that the role of district and commune authorities is to propagate to people to resolutely not negotiate with "brokers" but to auction to the end so that "brokers" will self-destruct.

On the other hand, security forces also need to actively intervene, exercising the right to disperse crowds when there are signs of gathering to negotiate at auctions; at the same time, change the form of auction from direct to indirect by secret ballot.

The planned land in Phuc Thanh commune, Yen Thanh district has been auctioned. Illustrative photo by Mai Hoa

At the meeting, members of the monitoring delegation also raised many issues related to determining the starting price and steps to ensure objective prices close to the market; handling deposits and deposit interest for those who did not win the auction.

Given the reality of some auction areas, after people won the auction but the infrastructure was not completed, lacked electricity and water systems, and could not build houses; the People's Council's Legal Committee requested that the company take responsibility in assessing the conditions, especially the infrastructure, before conducting the auction.

The delegation also noted a number of the company's proposals on the inadequacies between regulations and practices that need to be adjusted, amended, and supplemented in land auction activities; the issue of ensuring healthy competition between auction units; handling the relationship between property owners and auction units...

Decision No. 12/2018/QD-UBND, dated February 2, 2018 of the Provincial People's Committee clearly stipulates 4 forms of auction, including direct auction by word of mouth at the auction; auction by direct voting at the auction; auction by indirect voting and online auction.

In the above 4 forms, it is encouraged to choose auction by indirect voting, ensuring fairness, objectivity and transparency.