HCMC 'golden' land plots leased illegally by official agencies

By Le Tuyet November 11, 2024 | 10:54 pm PT

A woman walks past a property at at No. 80 Nguyen Hue Street in HCMC's downtown District 1, which is identified by the HCMC Inspectorate as being leased out by District 1's Public Utility Company with prolonged outstanding debt. Photo by VnExpress/Thanh Tung

Many public lands on streets considered "golden" plots in the heart of HCMC have been leased illegally by various government agencies without inviting bids, according to inspectors.

They include properties on downtown streets like Nguyen Hue and Dong Khoi and inside Ben Thanh Market, according to a report by the city Inspectorate, which audits the management and use of state-owned properties, lands and other assets.

The District 1 Public Utility Company is tasked by the city People's Committee with managing over 1,680 properties. More than 1,400 have been transferred to the Department of Construction’s Housing and Construction Appraisal Management Center, and some sold to private citizens.

Of the remaining 108 sites, 33 remain vacant, including seven plots on prime streets Le Loi, Nguyen Hue and Bui Vien measuring thousands of square meters, which are unused for over 12 months.

The inspectors also found the Public Utility Company "lacked strict oversight," leading to nine public properties being leased to businesses that have been occupying them even after the expiry of the leases and owing over VND20 billion (US$786,700) in unpaid dues.

These properties are on streets such as Nguyen Hue, Tran Dinh Xu, Ky Con, Le Thanh Ton, Pasteur, Calmette, Bui Thi Xuan, Ton That Dam, and Nguyen Thai Binh.

The company was also found to have leased many properties without holding public auctions, a violation of regulations that require public assets to be managed in a "market-oriented, transparent manner."

The contracts also lack provisions for penalties for late payments and repossession if contracts are breached, negatively impacting the city’s revenues.

The Inspectorate also found that of 186 properties managed directly by the district People's Committee, several were unlawfully leased, with revenues from them kept off the books.

The District 1 Sports Center leased 32 properties at four sites on Huyen Tran Cong Chua, Nguyen Du and Nguyen Binh Khiem streets, generating revenues of more than VND12.5 billion that never made the books.

It also leased out five properties for running canteens and parking lots not approved under the public asset usage plan.

The District 1 Vocational and Continuing Education Center leased multiple properties along Nguyen Thi Minh Khai, Bui Thi Xuan and Nguyen Dinh Chieu streets without government approval or auctions.

The Ben Thanh Market Management Board leased market stalls and infrastructure without conducting auctions or having an approved public asset usage plan, which is against regulations for transparency, generating over VND1.9 billion in off-book frauds.

The Inspectorate pinned the blame for the violations and oversights on the District 1 People’s Committee, the director of the Public Utility Company, its deputy directors, and other related organizations and individuals.

It recommended the initiation of legal proceedings to reclaim the public assets and funds.