Da Nang warns against “sand bandits” in the name of… businesses

Faced with the unusual increase in construction sand prices, many mines do not sell directly to contractors but through intermediaries, and do not even issue invoices, the Da Nang Department of Construction has issued a warning, requiring mining units to specifically report reserves, sales methods and current prices. The city will coordinate with relevant agencies to strictly handle acts of price manipulation, facilitating speculation and profiteering, hindering the construction progress of key projects.

On July 18, the Department of Construction of Da Nang City said that the Department has just issued a document requesting units exploiting and supplying construction sand materials in the city to urgently review and report in detail on the exploitation situation, remaining sand reserves at the mine, sales situation, transaction methods and actual prices currently applied.

Announced price is one way, actual sale price is another

According to the Department of Construction, recently, construction sand prices have been pushed up abnormally high, transactions are made through intermediaries, and there are no invoices... creating serious problems in controlling construction investment costs in Da Nang City.

According to feedback from many contractors and project investors, recently, the price of construction sand in Da Nang City has shown signs of unusual increase, even much higher than the price announced by the local government. In many cases, the purchase and sale does not take place directly between the mining unit and the contractor but through intermediaries, causing costs to arise, pushing up the price to "virtual" levels, making it difficult to control project finances.

Faced with the unusual increase in construction sand prices, some mines do not sell directly to contractors or do not issue invoices.

Notably, many transactions do not issue invoices, violating regulations on price transparency, potentially causing budget loss and negative consequences. Recognizing this as an unusual sign, directly affecting construction progress, the Department of Construction of Da Nang City has issued a document requesting all units exploiting and supplying construction sand in the area to urgently review and report in detail on the exploitation situation, remaining sand reserves at the mine, transaction methods, actual selling prices and sales forms.

Strictly punish violations

In addition to requiring reports on licensing information and mining activities, the Da Nang Department of Construction also requires sand mining units to clarify the specific form of sales, whether they sell directly to contractors for projects funded by the state budget or private sector, or through intermediaries. In cases where intermediaries participate in the transaction, the legality, actual role, and reasonable reasons must be assessed according to legal regulations.

In particular, if the actual selling price is found to be higher than the announced price, the units must report and clearly explain the reason. At the same time, the Department recommends reviewing the proposed announced price to ensure it is consistent with the market price and the selling price to the buyer. All reports must be sent to the Department before July 22 to serve as a basis for coordination, inspection, comparison, synthesis and reporting to competent authorities.

The Da Nang Department of Construction requires sand mining and supply units to fully report on reserves, selling prices and distribution processes in order to promptly correct and handle violations.

Enterprises and individuals trading in construction materials must seriously and fully fulfill their obligations under the Law on Prices No. 16/2023/QH15, especially Clause 7, Article 9, which stipulates the responsibility for handling complaints and compensating for damages caused by violations of the law on prices.

Tightening inspection and management of sand prices is not only a solution to correct speculation and price inflation of construction materials, but also clearly demonstrates the determination of the Da Nang City government in protecting the investment environment, transparent construction, and protecting the legitimate interests of contractors, investors and the whole society, the Da Nang Department of Construction emphasized.

Source: https://cand.com.vn/Xa-hoi/da-nang-canh-bao-cat-tac-nhan-danh-doanh-nghiep-i775209/