Corruption investigation into massive real estate project proves inconclusive

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Báo Dân Trí English - 33 month(s) ago 2 readings

Corruption investigation into massive real estate project proves inconclusive

The Prime Minister has allowed the Sudico Company, a member of the Song Da Corporation, to continue with the Hanoi Nam An Khanh New Urban area project after an investigation into it’s capital and asset management was carried out.

Unfinished Nam An Khanh project

The Prime Minister also ordered Hanoi authorities to monitor the work and immediately deal with any criminal activity, including corruption. The Ministry of Construction and the Song Da Corporation were asked to review the investments in non-core sectors and their management of capital and assets. They also worked with the Ministry of Finance to resolve outstanding financial problems.

The decision aims to ensure major projects undertaken by the corporation continue.

During a previous inspection of the Song Da Corporation, its members and subsidiary companies, Government Inspectors proposed to withdraw VND7 trillion (USD335,570,469) of Song Da Corporation’s funding and halt the Nam An Khanh project in Hanoi’s Hoai Duc District due to irregularities in project transfers.

The investigation determined that in 2006, the Song Da Corporation signed a contract worth VND155 billion (USD7,430,488) to transfer the Nam An Khanh new urban area project to its member, the Song Da Urban and Industrial Zone Investment and Development Company (Sudico).

According to Government Inspectors, this was a violation of the land law and against Ministry of Construction and Prime Minister’s directives.

According to VnExpress, Sudico disagreed and protested that the complaints were unfounded. Sudico had undergone a transformation from a state owned enterprise to a joint-stock company, so could legitimately use its capital and assets as it wished. The corporation claimed the VND155 billion contract it signed with the Song Da Corporation was a business co-operation contract.

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