Nghe An: Lack of transparency and brokers in land auctions
(Baonghean.vn) - Through monitoring the auction of land use rights at Nghe An Property Auction Service Center, the Legal Committee of the Provincial People's Council noted that besides the achieved results, the auction of land use rights was not really transparent and unfair.
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| On the afternoon of October 14, the Provincial People's Council's Legal Committee supervised the auction of land use rights at Nghe An Property Auction Service Center according to the 2019 supervision program. Photo: Mai Hoa |
The difference in winning bid price exceeds the starting price.
At the meeting, the members of the monitoring delegation pointed out the reality: Many auctioned plots of land were priced much higher than the previously determined starting price. This raises the issue that the starting price was not set close to the market, creating a “fertile ground” for auction brokers.
According to Mr. Nguyen Ngoc Minh - Director of Nghe An Property Auction Service Center, the construction of starting prices is approved annually by the District People's Committee, and auction units are not allowed to participate.
However, during the auction process, there are areas or lots of land put up for auction that have high demand, many registrations and are located in areas of high value. To solve this problem, the auction unit discusses and exchanges with the property owner to increase the price step through the rounds and there are lots that increase by 70 - 100% compared to the starting price.
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| Mr. Nguyen Ngoc Minh - Director of Nghe An Property Auction Service Center admitted that the situation of "auction brokers" is still openly operating. Photo: Mai Hoa |
Unfair competition between auction units
Regarding the situation of “brokers” in land auctions that voters and people are upset about, the Director of Nghe An Property Auction Service Center admitted that this situation still operates openly with the method of negotiating, colluding or threatening, preventing customers who really have needs. This reality affects the auction results, causes loss of budget revenue, and affects the rights of auction participants.
To overcome this situation, the center has applied the change of auction form from direct to indirect since the beginning of 2019. Mr. Nguyen Ngoc Minh suggested that the province should regulate and create consistency in the form of indirect auction in the province.
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| People learn about the planning of the auctioned land in Phuc Thanh commune, Yen Thanh district. Photo: Mai Hoa |
Indirect auctions will reduce the number of “auction brokers”; limit the loss of security and order in auctions; ensure the rights and interests of those in need, avoid losses, and increase revenue for local budgets.
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| Construction of infrastructure for land subdivision in Dien Phuc commune. Photo courtesy of Mai Giang |
In 2018, the center successfully auctioned 87 contracts, with a difference of 18% over the starting price. In 2019, the center successfully auctioned 84 contracts, with a difference of 28% over the starting price. 28 contracts were auctioned indirectly, with a difference of 33.8% over the starting price.
At the meeting, the Legal Committee of the Provincial People's Council proposed that the center pay attention to advising the Department of Justice, improving state management of auctions, especially auction forms; proposing measures to limit negative aspects in land auctions, ensuring security and order, ensuring the rights of those who really need to buy land for housing...