Quoc Cuong Gia Lai JSC and Tan Thuan Investment and Construction One Member Limited Liability Company have terminated the sale and purchase contract of 32.4 hectares of land in HoChiMinh City, which did not cause economic loss to the State, according to local authorities.
The land lot is located in Phuoc Kien residential area of Phuoc Kien commune, Nha Be district, Ho Chi Minh city.
Previously, Tan Thuan Company had signed a contract to transfer 32.4 hectares of compensated land in Phuoc Kien commune, Nha Be district in the middle of last year.
The price revealed by Quoc Cuong Gia Lai was about $27.8 million (including value added tax), which means only $83.6 per square metre, much lower than the current market price.
According to the conclusion of the HCMC Communist Party's Standing Committee, the transfer of the compensated land from Tan Thuan Company to Quoc Cuong Gia Lai under the contract dated June 5th, 2017 is not under the authority.
The Standing Committee said that Tan Thuan company has illegally transferred assets of high values. Despite being the financial company of HCMC Party Committee, Tan Thuan did not prioritise the interests of the Party, which was a serious violation. If the Standing Committee had not promptly requested it to cancel the contract, it would have caused significant damage.
The Standing Committee requested the temporary suspension of work on Tan Thuan Company's General Director, Tran Cong Thien. After that, the company will be comprehensively inspected to handle the individuals involved.
The Office of HCMC Communist Party's Committee violated Decree 91 and Decision No. 1087 by skipping the bidding process and nominating Quoc Cuong Gia Lai Company as the partner. Also, the Office did not assess the proposed price of Tan Thuan Company when it was not reasonable compared to the market price.
Tat Thanh Cang, Deputy Secretary of HCMC Communist Party's Committee, was reportedly not reporting to the Standing Committee before making the decision, causing the risk of great losses to the Municipal Party. The Standing Committee requested Tat Thanh Cang to review his responsibility.
According to the report, up to now, no signs of gaining personal benefits have been detected by the Commission for Inspection of HCMC Party Committee.
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