Da Nang rejects inspectorate’s land conclusion The Government Inspectorate has concluded that the Da Nang City People’s Committee committed land-related wrongdoings causing a loss of VND3,434 billion (US$160.58 million) from 2003 to 2011. The latter has rejected this allegation. In its conclusion, the Inspectorate said the city Land Pricing Council and the local People’s Committee had applied land prices lower than market rates when local authorities allocated land to projects. Such low prices benefited the projects’ investors while causing great loss to the State budget. Prime Minister Nguyen Tan Dung has agreed with its conclusion and ordered the Ministry of Public Security to investigate a number of wrongdoings. The Inspectorate has pointed out tens of projects in which it said wrongdoings had been found. These projects include the one developed by Phuc Thien Long Co Ltd to build a service, commercial and tourism complex. According to the Inspectorate, this project caused a loss of at least VND120 billion ($5.76 million). Another project involved a resettlement that used the A2 and A3 land areas. The project caused a loss of at least VND108 billion, inspectors said. The Inspectorate also mentioned many others projects that used the land in Zones A4 and A5, a land plot on Pham Van Dong Street, and another plot allocated to Tan Cuong Thanh Co Ltd, among others. No loss, only gains: Da Nang In response, on January 18 Da Nang People’s Committee released a statement, signed by Van Huu Chien, chairman of the committee, to respond to the Inspectorate’s conclusion. In this statement, the committee said that the inspectors are incorrect. It is groundless for the Inspectorate to conclude that the Phuc Thien Long project caused a loss of VND120 billion. The approval of the land price of VND3.03 million per square meter that the project’s investor had paid was within the jurisdiction of the local government and in line with the market rate at that time. Regarding land transfers afterward between the company and individuals, they were civil relations and did not fall under the city People’s committee’s responsibility. As for the plot of 21,000 square meters on Pham Van Dong Street and those in zones A2 and A3, they were similar to the land for the Phuc Thien Long project. It is also groundless to say the land assignment to Tan Cuong Thanh Co Ltd caused a loss of VND57 billion to the State budget, since the approval of the price of VND585,800 per square meter applied for the assignment was within the city government’s jurisdiction. This fee is within the range stipulated by the Government, the city People’s Committee said. As for the Da Phuoc Urban Area project, the Inspectorate said it caused a loss of VND570 billion, but in fact it benefited the State by VND1.075 billion, the city authorities said.   Nguyen Ba Thanh, Da Nang city's Party Committee Secretary and head of the Central Internal Affairs Commission: "Da Nang People's Committee has handled land-related issues within its legal authority." (Photo: Tuoi Tre) The city authorities also affirmed that it applied a 10 percent land price reduction in accordance with Item 2 of Article 4 of Decree 38 of August 23, 2000 by the Government, and also on the basis of Item 2 of Article 8 of Decree 61 of July 5, 1995. Such a price cut is one of the city’s land-related policies that have helped increase the State budget revenue, the city said. Talking with Tuoi Tre on January 18, Nguyen Ba Thanh, city Party Committee Secretary and head of the Central Internal Affairs Commission, argued that the local government had handled land-related issues within its legal authority. He said the Inspectorate’s conclusion is groundless, unconvincing, and impractical. Van Huu Chien, chairman of the city People’s Committee, also considered the conclusion “unpersuasive and abnormal”. TuoitreNews