More than 32 hectares of public land were sold cheaply to Quoc Cuong Gia Lai?

Mr. Tat Thanh Cang, Standing Deputy Secretary of the Ho Chi Minh City Party Committee (Photo: IT)

Approval of the policy of transferring 32 hectares of land without proper authority

On June 3, 4 and 5, the Standing Committee of the Ho Chi Minh City Party Committee, chaired by Comrade Nguyen Thien Nhan - Politburo member, Secretary of the City Party Committee, met and had some conclusions on the transfer of more than 32 hectares of land at the Phuoc Kien residential area project, Nha Be district.

Specifically, the responsibility of Standing Deputy Secretary of the City Party Committee Tat Thanh Cang in this case is to approve the policy of transferring compensated land of Tan Thuan Company and approving the transfer to Quoc Cuong Gia Lai Joint Stock Company without authority and in accordance with the law, without reporting to the Standing Committee of the City Party Committee and the Standing Committee of the City Party Committee before making the decision.

In addition, without checking the implementation of its directive conclusions, the transfer under Contract 203/HDKT/2017 risks causing great losses to the City Party Committee.

Statement of Mr. Tat Thanh Cang regarding the land case in Nha Be district

Accordingly, the transfer of the compensated land in Phuoc Kien commune, Nha Be district by Tan Thuan Company to Quoc Cuong Gia Lai Joint Stock Company under the contract dated June 5, 2017 is not in accordance with the authority prescribed in Articles 3 and 6 of Decision No. 1087-QD/TU dated March 31, 2009 of the Standing Committee of the City Party Committee on promulgating regulations on management and use of assets such as houses and land use rights at single-member limited liability companies owned by the City Party Committee (the Standing Committee decided to transfer ownership of assets such as houses and land use rights).

The transfer of compensated land without auction is contrary to Decree 91/2015/ND-CP dated October 13, 2015 of the Government; not in accordance with Decree 44/2014/ND-CP dated May 15, 2014 of the Government regulating land prices.

Therefore, on April 18, 2018, the Standing Committee of the City Party Committee concluded to request Tan Thuan Company to negotiate with its partner to cancel the contract. After that, both parties completed the contract termination and did not cause economic damage to Tan Thuan Company.

The story of Quoc Cuong Gia Lai of Cuong Dollar buying public land at cheap price

Regarding the transaction of Tan Thuan Company selling 32 hectares of land in Phuoc Kien, Nha Be to Quoc Cuong Gia Lai Joint Stock Company, also in an announcement of the Ho Chi Minh City Party Committee posted on the Ho Chi Minh City Party Committee's website, related to the fact that Tan Thuan Investment and Construction One Member Co., Ltd. signed to transfer the compensated land area in Phuoc Kien Residential Area (Phuoc Kien Commune, Nha Be District) to Quoc Cuong Gia Lai Joint Stock Company of more than 30 hectares at the price of 1.29 million VND/m2, on April 18, the Ho Chi Minh City Party Committee Office said: this signing was not reported to the Standing Committee and the Standing Committee of the City Party Committee according to the City Party Committee's asset management regulations.

The Standing Committee of the Ho Chi Minh City Party Committee said that the signing of this contract was not in accordance with Decision No. 1087-QD/TU, dated March 31, 2009 of the Standing Committee of the City Party Committee on promulgating the Regulations on management and use of assets such as houses and land use rights at one-member LLCs under the City Party Committee. At the same time, the Standing Committee of the City Party Committee directed the consideration and settlement of the transfer in accordance with the provisions of law.

According to Appendix 2 of the land use rights transfer and sale transaction contract, the 32.5-hectare land plot in Phuoc Kien commune, Nha Be district, located on Nguyen Huu Tho street, was sold by Tan Thuan Investment and Construction One Member Co., Ltd. to Quoc Cuong Gia Lai for VND419 billion, equivalent to VND1.29 million/m2 (Photo: Zing)

According to the audited semi-annual financial report and audited consolidated financial report of Quoc Cuong Gia Lai Joint Stock Company (QCG stock), in 2017, Cuong Do La's company and Tan Thuan Investment and Construction One Member Co., Ltd. (Tan Thuan) had 2 transactions of buying and selling and transferring land use rights for large projects in Nha Be district and District 7, Ho Chi Minh City.

Specifically, in the first 6 months of 2017, Quoc Cuong Gia Lai of Cuong Do La had a short-term prepayment to the seller of nearly 335.4 billion VND for Tan Thuan Company. This is the amount of money Quoc Cuong Gia Lai paid in advance to Tan Thuan equivalent to 80% of the contract value to buy back the entire land area that Tan Thuan had transferred from the people in Phuoc Kien Commune, Nha Be District, Ho Chi Minh City.

This means that the transaction value of the land area that Tan Thuan received from the people in Phuoc Kien commune, Nha Be district is more than 419.2 billion VND.

Cuong Do La's financial report also shows that the Phuoc Kien project is still on the list of inventory values ​​of this mountain city giant with a value of more than VND5,075 billion, out of a total of VND6,906 billion in inventory. This shows that the Phuoc Kien Residential Area project is still under the control of Quoc Cuong Gia Lai even though the company received an advance payment of USD50 million from Sunny Land Investment JSC in early 2017.

The above land plot has an area of ​​324,971m2, or nearly 32.5 hectares. With an area of ​​nearly 32.5 hectares, the land plot was purchased for 419.2 billion VND, equivalent to QCG paying 1.29 million VND for one square meter of land in Phuoc Kien commune, Nha Be district.