Series of violations detected at FLC luxury resorts

Ministry of Construction (MoC) identified in their report all the wrongdoings by the local governments and the project sponsor (FLC Group) before and during constructions of the two hotel complexes in Thanh Hoa and Binh Dinh provinces.

According to the MoC, Thanh Hoa People’s Committee gave the green light the construction plan of a golf course in FLC Sam Son complex, 11 months before the Prime Minister (PM) granted approval. It also allowed the conversion of 11ha of protective forested lands into golf course area, in breach of PM’s regulation.

Also in this project, construction permits were issued for two constructions after they were already completed. Four other complete constructions were yet to be granted permission at the time of inspection.

One massive seven-story building with the total area of 4,000m2 came into operation without a permit. Another 15-storey building of 75,000m2 was constructed when no permit was issued yet.

The MoC pointed out similar violations in FLC Quy Nhon project: seven constructions with permits issued after completion and five others without permits, though completed.

The ministry requested the FLC Group to put on hold all of its construction activities and track quality of construction to date. Regarding nine completed work items without permits, the company must apply for their required papers.

Ho Quoc Dung, Chairman of Binh Dinh People’s Committee, admitted that he was held accountable for the violations of FLC Quy Nhon project, but defending that the local government was attempting to best facilitate business activities, create jobs for locals and also collect budget revenue as soon as possible.

The Binh Dinh Chairman complained about the existing cumbersome procedures and slow appraisal process to the detriment of business efficiency. He emphasized that more favorable conditions should be created to achieve a better business environment.

FLC Sam Son and FLC Quy Nhon are the two luxury resorts of the FLC Group. They are a complex of golf courses, villas, hotels, recreational parks, convention venues and etc.. FLC Sam Son covers more than 200ha with the total investment of US$350 million, while FLC Quy Nhon stretches over 1,300ha and costs US$310 million.

Another FLC hotel complex has just been approved by the government on 18 July 2017. The new resort will be on Do Son beach, Hai Phong City, with the total investment of US$233 million.