Investigated for many violations, investor still requests to construct project

Please continue to implement low income housing projects

Mr. Le Ngoc Quang, Deputy Chief of Office of Quang Nam Provincial People's Committee, informed that he had received a document from STO Rural Agriculture Investment Consulting and Sports Tourism Services Joint Stock Company (abbreviated as STO Company) requesting to continue implementing the Housing Project for low-income people in Dien Nam - Dien Ngoc Industrial Park, Dien Ban town, after the Provincial Inspectorate issued a conclusion on a comprehensive inspection of the above project.

In response to the request of STO Company, Mr. Le Tri Thanh, Chairman of the People's Committee of Quang Nam province assigned the Provincial Inspectorate to preside over, coordinate with relevant agencies, and advise the Provincial People's Committee to respond to the content of this request.

According to a document sent to the People's Committee of Quang Nam province, Mr. Pham Tien Tien, General Director of STO Company, said that during the comprehensive inspection of the Project, the Quang Nam Provincial Inspectorate found signs of criminality in the behavior of the former Chairman of the Board of Directors of STO Company, Mr. Tran Chien Thang, and a number of former managers of STO Company.

Real Estate - Investigated for many violations, investor still requests to construct project — Project implementation is incomplete.

Therefore, Quang Nam Provincial Inspectorate will not publicly disclose the Inspection Conclusion to STO Company and related units, and will transfer the entire file to the Investigation Police Agency, Quang Nam Provincial Police to investigate and clarify the illegal acts of related individuals.

Therefore, after the Quang Nam Provincial Inspectorate announced the inspection conclusion, STO Company did not know how the project was implemented according to the Inspection Conclusion. Currently, this project has stopped construction since October 18, 2022.

According to STO Company, in order to have a basis to continue implementing the project as well as to have a basis to work with investors who have invested in the project, STO Company respectfully requests the People's Committee of Quang Nam province to allow the investor to continue implementing the project to ensure the progress that the company has committed to the People's Committee of the province.

“In case after June 8, 2023, STO Company does not receive a response from the Provincial People's Committee, the company will continue to construct the project according to the committed schedule,” Mr. Tien stated in the document.

A series of violations

According to the conclusion of the Quang Nam provincial inspection, the management of the project of the Housing Area for low-income people in Dien Nam - Dien Ngoc Industrial Park by the investor revealed many weaknesses, leading to the project being unfinished for many years. The project items were unfinished and are showing signs of deterioration and damage.

The project has not been completed, but the investor has illegally transferred land use rights (through capital contribution contracts); exploited and transferred overlapping land lots.

The inspection conclusion pointed out a number of violations with signs of intentional violation of legal regulations and signs of fraud and appropriation of property by Mr. Tran Chien Thang, former Chairman of the Board of Directors of STO Company.

Specifically, Mr. Thang directed capital mobilization by transferring land use rights through capital contribution contracts in violation of the law.

Exploiting and transferring duplicate land lots in the project, showing signs of customer fraud leading to complaints and lawsuits lasting for many years, causing public outrage and disrupting security and order; not providing sufficient records and documents for inspection, losing accounting books and vouchers for 2017, 2020, 2021.

Real estate - Investigated for many violations, the investor still requested to construct the project (Image 2). — Inside the project.

This man made dishonest financial statements, leading to cash and cash equivalents on the company's financial statements being over VND99.9 billion, but in reality, on the company's cash fund handover voucher, it was 0 VND, and bank deposits were only over VND500,000. The company's equity on its financial statements was VND100 billion, but the actual handover figure was VND0...

Quang Nam Provincial Inspectorate requested the Quang Nam Provincial Police Investigation Agency to investigate signs of violations by the investor.

The Housing Project for Low-Income People in Dien Nam - Dien Ngoc Industrial Park has a total area of over 1,800 hectares, with an investment scale including infrastructure systems, public works, service works and over 3,600 apartments with full living facilities, with a total capital of over 700 billion VND. Expected completion and put into use in August 2018.

The project is eligible for investment incentives from the People's Committee of Quang Nam province on supporting and encouraging investment in developing housing for workers in industrial parks and housing for low-income people in urban areas in Quang Nam province.

However, the project is continuously behind schedule despite repeated urging from local authorities.

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