Tighten management and reduce the number of brokers in land auctions.

(Baonghean) - Mr. Hoang Quoc Hao - Director of the Department of Justice, gave an interview to Baonghean Newspaper regarding the auctioning of land use rights.

PV:According to feedback from citizens and voters, some land use rights auctions are being rigged with "dummy bidders" and "land brokers." What are your thoughts on this issue?

Mr. Hoang Quoc Hao:Despite its positive aspects, the auctioning of assets, especially land use rights, still suffers from collusion, price manipulation, and other irregularities that disrupt order and security in some localities. This is a problem not unique to Nghe An province.

The negative situation arises partly due to inconsistent and incomplete legal regulations, and a lack of close coordination between district and commune-level People's Committees and asset auction organizations during the auction process. Furthermore, the district-level People's Committees have not been sufficiently decisive in their leadership, particularly in directing security forces to detect, prevent, and promptly address violations of the law. On the other hand, the application process for auction participation is not limited by place of residence, leading to many individuals, including professional bidders and groups, engaging in blatant practices such as pressure, threats, and price manipulation at auction sites despite having no intention of purchasing land. These sophisticated tactics aim to profit illegally, causing public discontent, social disorder, and revenue losses for the state budget.

Land auction planning area in Nghi Kim commune (Vinh City). Photo: CL

To ensure that asset auctions comply with legal regulations and maintain professionalism, on November 17, 2016, the 14th National Assembly, at its 2nd session, passed the Law on Asset Auctions, which came into effect on July 1, 2017. This law includes many new regulations, such as new auction methods like indirect bidding and online auctions, stricter registration, organization, and operation requirements for auctioneers, and more stringent standards for auctioneers. These regulations will serve as a basis for implementation and gradually prevent land brokers, collusion, and price manipulation.

PV:What is the current state and level of professionalism in the operations of asset auction organizations, sir?

Mr. Hoang Quoc Hao:Currently, there are 19 asset auction organizations in Nghe An province, including: the Asset Auction Service Center with 4 auctioneers; 9 joint-stock companies, 7 limited liability companies, and 2 representative offices with 32 auctioneers. The quality and distribution of asset auction businesses in Nghe An province are uneven, mainly located in Vinh City; some businesses lack experience in organization and operation, and have not focused on investing in infrastructure and personnel. Some businesses operate in multiple sectors, with asset auctioning being only one of their areas of activity, thus lacking professionalism.

According to the provisions of the Law on Auction of Assets 2016, which came into effect on July 1, 2017, asset auction businesses are established, organized, and operate in the form of private auction businesses, partnership auction companies, and the Certificate of Registration for Asset Auction Businesses is issued by the Department of Justice following strict procedures.

PV:Could you please explain the current role of the Department of Justice in the state management of land use rights auctions?

Mr. Hoang Quoc Hao:In fulfilling its nhiệm vụ of assisting the Provincial People's Committee in managing state affairs related to asset auctions in the locality, the Department of Justice has coordinated with relevant departments and agencies to advise the Provincial People's Committee on issuing decisions on regulations for asset auctions and land use rights auctions in the province. It has also issued documents to strengthen the management of land use rights auctions and to prevent and combat violations of the law in the field of land use rights auctions. In addition, it has organized conferences on several issues related to state management of land use rights auctions in the province, with the participation of representatives from relevant departments, agencies, districts, and cities.

Inspections and audits of asset auction activities have been carried out regularly; every year, the Provincial People's Committee and the Department of Justice establish inspection teams at asset auction organizations. Any shortcomings or violations identified after inspections and audits have been seriously addressed and rectified; all complaints and grievances related to asset auction activities have been resolved promptly and in accordance with the law.

In particular, to contribute to preventing negative practices and violations in land use rights auctions, which lead to losses in state budget revenue, the Provincial People's Committee established a Monitoring Team for the implementation of land use rights auctions according to Decision No. 2359/QD-UBND dated June 2, 2017. The members of the Monitoring Team include representatives from the following departments and agencies: Public Security, Finance, Construction, Natural Resources and Environment, Justice, and the People's Committees of the districts where the land is being auctioned.

A land auction in Yen Thanh town. Photo: Van Truong

PV:So what are the solutions to improve the efficiency of asset auctions in general and land use rights auctions in particular in the future?

Mr. Hoang Quoc Hao:In the coming period, the Department of Justice will advise the Provincial People's Committee on the implementation of the Law on Auctioning Assets according to the Plan issued by the Provincial People's Committee. This includes the task of coordinating with departments and agencies to review legal documents and advising the Provincial People's Committee to issue a document replacing Decision No. 74/2014/QD-UBND dated October 17, 2014, promulgating the Regulations on auctioning assets in Nghe An province, and Decision No. 03/2017/QD-UBND dated January 13, 2017, promulgating the Regulations on auctioning land use rights for land allocation with land use fees or land lease in Nghe An province.

Strengthen inspection and supervision of asset auction activities, including the serious implementation of Decision No. 2359/QD-UBND dated June 2, 2017, of the Provincial People's Committee on the establishment of a Supervisory Team for the auction of land use rights, focusing supervision in districts with complaints received.

The People's Committees of the districts need to comprehensively and synchronously disseminate the Law on Auctioning Assets and its implementing guidelines, ensuring that the Law is put into practice to restore order and discipline in asset auctions, avoiding negative phenomena and limitations as currently exist; closely coordinate with professional auction organizations to ensure that auctions are conducted in accordance with the procedures and regulations of the law; strengthen the direction of security forces at the district and commune levels where land is auctioned to deploy sufficient forces to ensure security and order during auctions and promptly handle violations; select reputable professional auction organizations to sign contracts for asset auctions.

For relevant departments and agencies, based on their functions and duties, they should strengthen supervision, inspection, and investigation of the implementation of solutions to detect, investigate, and handle violations in the field of asset auctions, especially the situation of threatening, coercing, and obstructing customers participating in auctions, and extorting money from customers who win auctions.

PV:Thank you, sir!

Chau Lan

(Perform)