Because of many violations during the capital contribution process, the People’s Committee of Ho Chi Minh City decided to revoke the land at 152 Tran Phu, District 5, but Vina Alliance Co., Ltd. did not comply with the submission of the land use right certificate for the land. Therefore, the Department of Natural Resources and Environment announced the revocation and cancellation of the red book of this land.
Mr. Nguyen Toan Thang, Director of the Department of Natural Resources and Environment of Ho Chi Minh City, has just signed a notice to revoke and cancel the land use right certificate (red book) issued for nearly 31,000 m2 of land at 152 Tran Phu, District 5.
The “golden land” area at 152 Tran Phu, District 5 has three frontages on Tran Phu – Le Hong Phong – Tran Nhan Ton streets. The purpose of this land is to build office buildings, commercial and service centers, hotels, and luxury apartments.
The “golden land” area at 152 Tran Phu, District 5 has three frontages on Tran Phu – Le Hong Phong – Tran Nhan Ton streets. Photo: Pham Nguyen.
Previously, on January 19, 2005, the Department of Natural Resources and Environment authorized the Chairman of Ho Chi Minh City People’s Committee to grant Vietnam Tobacco Corporation (now Vietnam Tobacco Corporation – Vinataba Limited Liability Company). ).
In 2012, Saigon Tobacco Factory – a member unit 100% owned by Vinataba – completed its relocation to Vinh Loc Industrial Park, Binh Chanh district.
But before that, in 2008, Vinataba and Saigon Tobacco Company decided to contribute capital to implement a commercial project on the land at 152 Tran Phu, with partners VI NA Trading and Investment Joint Stock Company. TA BA (member of Vinataba), Do Thanh Viet Co., Ltd. and Dream House Commercial Construction Joint Stock Company (now DRH Holdings Joint Stock Company). The project was granted an investment certificate on October 13, 2008 and a land use right certificate on January 19, 2009.
The consolidated financial report for the period January 1, 2017 – June 30, 2017 released by Vinataba on May 3, 2018, said that on June 13, 2017, Vinataba transferred shares at the Company. Vina Alliance LLC to Son Dong LLC. The transfer value between the two parties is more than 270 billion VND. Minus the original price of the investment in the accounting books, Vinataba earned a profit of more than 94 billion VND.
In addition, Vinataba also indirectly owns an additional 7.5% of capital in Vina Alliance Company Limited, through Saigon Tobacco Company. Similarly, Saigon Tobacco Company also transferred 7.5% of this capital to Son Dong Company Limited for more than 100 billion VND, recording a profit of more than 35 billion VND.
According to the changed business registration certificate dated September 27, 2017, Son Dong Company Limited increased its holding rate in Vina Alliance to 38%. Meanwhile, Vinataba and Vinataba Saigon completely disappeared from Vina Alliance. This means that they no longer have anything to do with the 152 Tran Phu project.
By October 10, 2022, the Government Inspectorate issued a notice concluding the inspection of law enforcement in the management and use of capital and assets, divestment and restructuring at Vinataba. The inspection conclusion clearly shows that in construction investment, Vinataba committed violations when contributing capital to the project at 152 Tran Phu.
Inside the “golden land” area at 152 Tran Phu, District 5. Photo: Pham Nguyen.
In particular, Vinataba did not re-evaluate assets; going against the Prime Minister’s direction, violating the law on transferring assets of enterprises with 100% charter capital held by the State when transferring nearly 31,000 m2 at 152 Tran Phu without asking permission from the Prime Minister; Failure to auction land use rights risks losing money from the State and businesses.
The Government Inspectorate proposed that the Prime Minister direct the Committee for Management of State Capital at Enterprises to coordinate with the Ministry of Finance, Ho Chi Minh City People’s Committee, Vinataba and relevant ministries and branches to recover real estate facilities with an area of nearly 31,000 m2 in Ho Chi Minh City. 152 Tran Phu, if violations are discovered, transfer them to the investigation agency; Consider responsibility and take disciplinary action according to regulations for organizations and individuals that cause violations.
Following the conclusion of the Government Inspectorate, on October 25, 2023, Ho Chi Minh City People’s Committee issued a decision to revoke the above land.
On January 10, the Ho Chi Minh City Land Registration Office also sent an official dispatch requesting Vina Alliance Co., Ltd. to urgently hand over the original land use right certificate. However, up to now this enterprise has not yet implemented it.
Because Vina Alliance Co., Ltd. did not comply with the submission of the land use right certificate for the land at 152 Tran Phu, the Department of Natural Resources and Environment of Ho Chi Minh City announced that this certificate is no longer legally valid.
