$4 million banana export project fails, commune sues investor

(Baonghean.vn) - Vien Thanh Commune (Yen Thanh, Nghe An) is preparing to file a lawsuit regarding the consequences caused by a banana export project with a total investment of about 4 million USD.

» Nghe An: Bananas exported to... provincial markets

» Initial results of the banana export project

The asphalt road was invested in by the Provincial People's Committee to attract a 4 million USD project, stretching 9km from National Highway 7 around the banana growing area. Photo: Phu Huong

In 2010, Globe Farm Co., Ltd. (Korea) signed a contract to lease 54,671 hectares of land from 790 households in hamlets 4, 5, 6, 7, 8, 9 of Vien Thanh commune at a price of 600 USD/ha/year to invest in a banana export project worth 4 million USD.

Up to November 1, 2013, Vien Thanh commune has handed over a total of 55,0140 hectares, ensuring the signed contract (including 1 hectare recovered by the Provincial People's Committee from 57 households for the Company to lease for a period of 50 years to build a factory).

The land previously used for farming by local people for a banana project has now become a wasteland for grazing cattle. Photo: Phu Huong

Chairman of Vien Thanh Commune People's Committee, Mr. Nguyen Huu Nhan said: The company has paid all land rent to the people up to December 31, 2014. However, due to the ineffective operation of the project, by January 30, 2015, the enterprise had returned 9.7 hectares of rented land in Cay Truong field and Song Vang field.

Currently, the Company still owes land rent for 2015, 2016 and 2017 for an area of ​​44,613 hectares, with a total debt of 80,212 USD. Households have repeatedly demanded a resolution to this issue, causing instability in security and politics in the area.

After the working session of the Provincial People's Committee with relevant parties, on December 21, 2016, the Provincial People's Committee announced the conclusion of Mr. Dinh Viet Hong - Vice Chairman of the Provincial People's Committee, which clearly stated: Requiring the investor to level and restore the site before January 15, 2017 to return the land to the people; the land rental debt for 2 years 2015 and 2016 is 53,754 USD, the company pays 50%, the remaining amount the District People's Committee advances the budget for the Company to borrow to pay in advance to the people through the Commune People's Committee.

Following the province's direction, Yen Thanh district has advanced more than 605 million VND from the budget to pay 50% of the debt for households in advance.

The project's banana sink has not been used for a long time. Photo: Phu Huong

Chairman of Yen Thanh District People's Committee, Mr. Phan Van Tuyen said: "We have contacted representatives of Globe Farm LLC many times to coordinate to resolve related issues but failed. Now we don't know where they are (?!). That's why the return of land to the people cannot be carried out because the partner has not responded...".

During the process of Nghe An province's direction to handle, the land rent of the people has increased by one more year, a total of 3 years of unpaid debt, the debt has been prolonged so the people are very upset.

The inaction and non-cooperation of Globe Farm Company Limited has caused difficulties for the district in management at the grassroots level. Land rent has not been paid for many years, while people who want to reinvest on their land are not allowed. Although the province has intervened, there has been no response from the project owner.

"Therefore, Vien Thanh commune has filed a petition and filed a lawsuit to resolve the matter once and for all, returning rights to the locality and people as well as not allowing land resources in the area to be wasted for a long time," Mr. Tuyen affirmed.

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Phu Huong