A series of violations were discovered at the Management Board of Ho Chi Minh City High-Tech Park.

The Ho Chi Minh City Inspectorate has just issued a 9-page inspection conclusion notice on compliance with legal regulations at the Ho Chi Minh City High-Tech Park (SHTP) Management Board.

Accordingly, the SHTP Management Board has allowed shortcomings, limitations, shortcomings and violations to occur during the inspection period, from 2018-2020.

Some typical violations mentioned by the Ho Chi Minh City Inspectorate are:

The management of construction order according to planning and after construction permit issuance for some project and construction investors is not strict and timely, leading to the situation of illegal construction that is slow to be resolved (Jabil Vietnam Factory, Dien Quang High Technology One Member Co., Ltd., Saigon Industrial Corporation One Member Co., Ltd.)...

The SHTP Management Board's appraisal of the issuance of Investment Registration Certificates still has procedural shortcomings, some cases are not consistent with the approved planning or do not ensure legal basis.

In addition, this agency did not have effective measures to force investors of 20 projects to agree to deposit after leasing land, which is not in compliance with regulations.

The Saigon Silicon Park project with a total investment of more than 800 billion VND is abandoned in the High-Tech Park of Ho Chi Minh City (Photo: Nguyen Hue ).

In the management and use of finance and expenses, the SHTP Management Board collected 29,157 billion VND, spent 17,264 billion VND on security and order fees; allowed the Management Board of High-Tech Park Construction Investment Projects to deduct the following rates for the following revenues: 10% of the collected fees for maintenance and repair of infrastructure works and public utilities, amounting to 14,619 billion VND, 5% of the total regular costs of wastewater treatment activities, amounting to 1,179 billion VND, as management costs.

However, SHTP has not promptly reported to the City People's Committee for approval, has not ensured the legal basis for revenue and expenditure; has not strictly bound sanctions when signing contracts, leading to investors still having bad debts, not paying the amount of 41,664 billion VND (including: maintenance fees for infrastructure works, public utilities 32,617 billion VND and security and order fees 9,047 billion VND).

In addition, the SHTP Management Board also lacked regular inspections and failed to promptly detect and account for the provision of the 2020 Wastewater Treatment Plant reserve fund of VND 2,293 billion of the Project Management Board.

The Management Board also lacked supervision and inspection, causing investors of 33 projects to be slow in putting land into use, at least 1 month, at most 63 months as of July 2021, of which 3 units used land for purposes other than those granted Investment Registration Certificates.

SHTP Management Board signed land lease contracts to collect land rent at once for the entire lease term to the wrong subjects and in an incorrect form as prescribed by law; collected land rent at once for the entire lease term unreasonably; did not establish a land price formula close to the market price for appraisal and submission to competent authorities for approval as prescribed.

Notably, the Management Board did not use the correct cost price method when synthesizing investment costs to determine land rental prices, excluded compensation costs, site clearance costs, mine clearance costs and reserve fees when submitting to the City People's Committee, affecting the repayment of investment capital from the state budget.

At the SHTP Management Board, there are 10/24 contents that have not been completed according to the Audit Result Notice No. 408/TB-KTNN dated August 24, 2018 of the State Audit, of which, the amount of VND 58,607 billion has not been paid to the state budget (including: land rent of VND 27,399 billion; compensation and site clearance costs that must be returned to the state budget for the land rent-free project of VND 30,557 billion), the land rent for the Fulbright University Vietnam project of VND 241,708 billion has not been collected, and the responsibility of the Board's leaders has not been reviewed according to the recommendation of the State Audit.

According to the Ho Chi Minh City Inspectorate, the responsibility for the above-mentioned shortcomings, defects, and violations lies with the leaders of the Management Board, organizations, and individuals assigned to be in charge of the Management Board at the time of the incident.

From the above conclusion, the Chief Inspector of Ho Chi Minh City proposed and was basically agreed upon by Chairman of the City People's Committee Phan Van Mai, directing the handling.

The City Chairman assigned the Head of SHTP Management Board to propose measures to recover the amount of 41,664 billion VND from investors who have not paid fees according to signed contracts (including: maintenance fees for infrastructure works and public utilities of 32,617 billion VND and security and order fees of 9,047 billion VND).

Urgently collect land rent for 2020 and other management fees from Saigon Silicon Park Joint Stock Company and report the results of the project recovery as directed by the City People's Committee.

The Chairman of Ho Chi Minh City also assigned the Director of the Tax Department, Director of the Department of Natural Resources and Environment, Director of the Department of Construction, and Director of the Department of Home Affairs to handle the tasks related to the SHTP Management Board in the content of the conclusion notice.

The leaders of Ho Chi Minh City directed the City Inspectorate to transfer files of cases that may cause loss of state budget revenue to the Tax Department and the Department of Natural Resources and Environment for inspection, review, clarification, and collection (if any violations). In case of detecting signs of criminal law violations, causing damage to the State, report to the Chairman of the City People's Committee and transfer to the investigation agency for handling according to the provisions of law.

Ho Van - Tran Chung

Official information about Ms. Le Diep Kieu Trang's 20 million USD project Ms. Le Diep Kieu Trang's project at the Ho Chi Minh City Hi-Tech Park has not yet fully contributed capital, and cannot show the number of products produced and revenue. This million USD project has liquidated the factory since the end of 2022.

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