After Nghe An Electronic Newspaper published the article “An ‘elephant head, mouse tail’ project in Dong Hoi Industrial Park on July 21,” the Management Board of the Southeast Economic Zone informed that violations had been clarified at the Civil Wood Processing and Export Factory Project.
On the morning of July 8, the Inspection Team under Decision No. 163/QD-KKT of the Management Board of the Southeast Economic Zone (EZ) inspected the Project of a civil and export wood processing factory in the Dong Hoi Industrial Park (IP), Quynh Lap Commune, Hoang Mai Town, invested by Dong Hoi Development Company Limited. The inspection content was the implementation of legal regulations on investment, planning, construction, environment, and land.
At the time of inspection, the investor had not yet put the project into operation according to the objectives specified in the Investment Registration Certificate (including: Production of civil and export wood panels: 80,000 m3/year; Production of Wood Pellets for export: 40,000 tons/year; Wood processing: 40,000 tons/year). Currently, there are 3 wood chipper machines in operation with an output of about 4,000 tons of wood chips.
Regarding the project implementation progress, through inspection, the project is 25 months behind schedule compared to the schedule allowed by the competent state agency in Decision No. 09/QD-KKT dated January 3, 2019 (project completion on June 13, 2020), and 76 months behind schedule recorded on the Investment Registration Certificate (project completion in Quarter II/2016).
In compliance with legal regulations on planning and construction, the investor has completed the construction of the scale (including the roof, area of 60m2), in accordance with the planning but has not been granted a construction permit. The wood chip crushing and grinding workshop has been completed (with foundation, floor, truss frame, corrugated iron roof and lighting system; the surrounding wall and corrugated iron system around the workshop has not been built yet) with an area of 1,353m2, in accordance with the planning, but the factory structure is not in accordance with the approved design, and is not in accordance with the content of the construction permit. A concrete-structured yard for storing wood chips and sawdust (area 1,650 m2), in accordance with planning but not yet granted a construction permit. Completed power station on an area of 42m2, but not suitable for the location permitted for construction according to the approved planning, and has not been granted a construction permit. 2 toilets have been built (each toilet has an area of 7.3m2), but 1 toilet is not suitable for the planned location and has not been granted a construction permit; the remaining toilet is not in the planning; The domestic water tank and fire protection system have been completed (area 40m2) but not suitable for the location permitted for construction according to planning, not yet granted a construction permit. Completed construction of 2 wood material loading docks (each dock has an area of 16m2) but not included in the approved plan.
Regarding the implementation of land law regulations, according to Decision No. 5732/QD-UBND dated December 26, 2018 of the Provincial People's Committee and Decision No. 09/QD-KKT dated January 3, 2019 of the Southeast Economic Zone Management Board, the project was approved to extend the progress as follows: "Twenty-four (24) months from June 13, 2018. The investor is required to complete the remaining procedures on investment, land, and construction in the first quarter of 2019; Complete the project and put it into operation on June 13, 2020". However, at the time of inspection (July 8, 2022), it was more than 24 months from the time the project was allowed to be completed and put into operation.
Through inspection, on October 4, 2019, Dong Hoi Development Company Limited (Party A) and Minh Long 68 Trading and Service Company Limited (Party B) signed the Economic Cooperation Contract No. 02/2019/HĐHTKD/ML-DH (with some attached Appendices). In Clause 5.1, Article 5 of the Contract stipulates: "Party A contributes capital in the form of land...". This content is not consistent with the purpose of using the leased land stipulated in Clause 4, Article 1 of the Land Lease Contract No. 09/HĐTĐKKT dated May 27, 2019 between the Management Board of Dong Nam Economic Zone and Dong Hoi Development Company Limited (purpose of leasing land to invest in building a civil wood processing factory and export).
Regarding the implementation of legal regulations on environmental protection, at the time of inspection, the investor had not yet constructed environmental protection works according to Decision No. 156/QD-KKT dated June 28, 2016 on approving the environmental impact assessment report of the Project.
The Management Board of the Southeast Economic Zone said that, based on the inspection results of the Inspection Team under Decision No. 163/QD-KKT, on July 11, a Record of Administrative Violations was drawn up against Dong Hoi Development Company Limited. The Management Board of the Southeast Economic Zone determined that the company had committed 5 violations, including: Slow project implementation compared to the progress recorded on the Investment Certificate; Organizing construction works that are not in accordance with the content of the granted construction permit in the case of granting a construction permit with a term; Putting parts of the construction works, construction items, and construction works into use before organizing acceptance; Contributing capital with land use rights for land leased by the State with annual rental payments to the wrong subjects.
Regarding the delay in project implementation, the Management Board of Dong Nam Economic Zone requests the People's Committee of Hoang Mai town to impose administrative sanctions according to the authority prescribed in Point b, Clause 2, Article 74 of Decree No. 122/2001/ND-CP dated February 28, 2021 of the Government. Regarding the organization of construction works that are not in accordance with the content of the granted construction permit, and putting parts of works, items of works, and construction works into use without organizing acceptance, the People's Committee of Hoang Mai town requests administrative sanctions according to its authority. In addition, apply remedial measures according to the provisions of Point C, Clause 15, Article 16 of Decree 16/2002/ND-CP dated January 28, 2022, forcing the demolition of works, parts of construction works: wood chipping and grinding workshop; power station and 2 wood material handling machines, weighing station roof.
Regarding the delay in putting the land into use, according to the provisions of law, the investor is allowed to extend the land use period for 24 months, but must pay the State an amount of money corresponding to the land use fee and land rent for the period of delay. The time for calculating the 24-month land use extension is calculated from the 25th month from the time the construction investment must be completed (from June 14, 2022). However, it is recommended that the People's Committee of Hoang Mai town impose administrative sanctions according to its authority for the act of contributing capital using land use rights for land leased by the State with annual rent paid to the wrong subject. At the same time, apply remedial measures according to the provisions of Point b, Clause 6, Article 19 of Decree No. 91/2014/ND-CP, forcing the party contributing capital using land use rights to pay the illegal profits gained from the act of contributing capital using land use rights during the violation period.
According to the representative of the Southeast Economic Zone Management Board, up to now, the Civil and Export Wood Processing Factory Project has changed its Investment Registration Certificate for the second time, on May 31, 2022 (changed for the first time on June 5, 2020). After each change of the Certificate, the legal representative is also changed. The legal representative of the current investor is the Director of Dong Hoi Development Company Limited, who is aware of the problems of the Civil and Export Wood Processing Factory Project; fully agrees with the conclusion of the Inspection Team and has a spirit of cooperation to overcome the shortcomings and violations. On the part of the Southeast Economic Zone Management Board, from July 12, 2022, a document has been sent to the People's Committee of Hoang Mai town, requesting that, based on the provisions of the law stated in the minutes, violations at the Civil and Export Wood Processing Factory Project be strictly handled.