Phu Dong Park has been suspended since 2020
Khanh Hoa Provincial Inspectorate has just issued an inspection conclusion, clarifying a series of shortcomings and violations in the implementation of Phu Dong Park Project and Four Seasons E-Land Entertainment - Service Project.
The Phu Dong Park project is located on Tran Phu Street, invested by Khanh Hoa Tourism Company Limited.
In 2012, Khanh Hoa Provincial People's Committee issued an Investment Certificate to Invest Park Nha Trang Company Limited - a joint venture between Khanh Hoa Tourism Company Limited and foreign partners - to implement a project with a land area of about 24,000m2, with a total investment of 120 billion VND.
In the same year, Khanh Hoa Tourism Company Limited proposed that the Provincial People's Committee reclaim the land that the unit was leasing at Phu Dong Park to lease to Invest Park Nha Trang Company Limited to implement the project according to regulations.
In 2014, Khanh Hoa province issued a decision to reclaim land leased by Khanh Hoa Tourism Company Limited and allocate and lease land to Invest Park Nha Trang Company Limited to implement the project.
The inspection results determined that the land lease for project implementation did not go through auction of land use rights.
The current status of the land includes works including restaurants, toilets, swimming pools, Russian Restaurant, basement of Russian Restaurant and outdoor stage. These items have been temporarily suspended from business operations since March 2020.
Regarding financial obligations, Invest Park Nha Trang Company Limited has so far paid a part of the land rent.
Specifically: total land rent payable: more than 29.5 billion VND; paid amount: nearly 19 billion VND; remaining payable amount: more than 4.8 billion VND; exempted or reduced amount: more than 5.8 billion VND.
Fault due to subjectivity, haste
A similar situation also occurs at the E-Land Four Seasons Entertainment - Service Project, located on the East side of Tran Phu Street (opposite 40 Tran Phu), invested by Nha Trang Four Seasons Company Limited.
The project has a scale of building a restaurant and entertainment service area, with a ground and underground area of about 2,787m2, total investment capital of about 85 billion VND.
According to the inspection agency, the land allocation and lease to implement this project did not go through auction of land use rights.
The responsibility is determined to belong to the People's Committee of Khanh Hoa province (2012's 2015, 2017 period), the Department of Natural Resources and Environment (2012, 2014, 2015, 2017) and related individuals.
According to the inspection conclusion, at the time of the violations, Khanh Hoa province was facing many difficulties in attracting and mobilizing investment capital to develop transport infrastructure, trade - tourism - services, so it was subjective and hasty in implementing projects to promote socio-economic development.
In addition, the laws on land, investment, construction, housing... at that time were not synchronous and overlapped, while being slow to be guided, amended, supplemented...
The above violations are largely due to the fault of state management agencies, some cases are the fault of both management agencies and investors.
Because the project did not organize a land use rights auction to select an investor, it was not in accordance with the provisions of law.
The inspection agency requested the Khanh Hoa Provincial People's Committee to propose to Steering Committee 751 and the Prime Minister to consider and report to competent authorities to allow the application of a special mechanism similar to Resolution 170/2024/QH15.
Accordingly, the application of a special mechanism will help handle continued land use, determine land prices to fully collect financial obligations to the state budget, ensure no loss of public assets, and at the same time remove difficulties and obstacles for coastal projects that have been backlogged for many years.
