Tighten regulations to reduce collusion and profiteering in asset auctions

Stricter procedures, methods and regulations in property auction activities

On August 15, participating in questioning Minister of Justice Le Thanh Long at the 25th session of the National Assembly Standing Committee, National Assembly Delegate Ma Thi Thuy (Tuyen Quang delegation) pointed out the current situation of a number of auctioneers who still have limited professional skills and qualifications, violate professional ethics, violate the law, and are still lenient in property auction activities.

To clarify this issue, National Assembly Delegate Ma Thi Thuy asked: “I would like to request the Minister to inform us of how many cases of auctioneers violating the law that need to be handled, the cause of this situation and solutions to overcome it in the coming time? At the same time, I would like to request the Minister to provide more information on the direction of amending the Law on Property Auction to prevent violations of the law?”.

Tighten regulations to reduce arbitrage in asset prices Figure 1 — National Assembly Delegate Ma Thi Thuy questioned Minister of Justice Le Thanh Long from the National Assembly Delegation of Tuyen Quang province.

Regarding this issue, responding to National Assembly delegates, Minister Le Thanh Long said that from 2018 to 2022, the Ministry of Justice and its units have conducted a total of 143 inspections and examinations in the field of asset auctions. Regarding auction laws, according to the Minister, regulations have been stricter on procedures, methods, and regulations to reduce collusion and price gouging.

The Ministry of Justice has also strengthened measures to professionalize auctioneers in accordance with the direction of the Central Steering Committee on preventing and combating corruption and negativity and documents of competent authorities. "Currently, when entering a specific profession such as auctioneering, it is necessary to be trained and acquire professional skills," the Minister said, adding that this field needs to be professionalized.

Tighten regulations to reduce arbitrage in asset prices Figure 2 — Minister of Justice Le Thanh Long answered questions.

Regarding Decree 55/2011/ND-CP, Minister of Justice Le Thanh Long said that there are problems with the organizational structure. The current solution is to professionalize, protect the professional title of auctioneer and there will be more encouragement in the process of performing tasks, with certain compensation regimes.

Regarding the direction of amending the Law on Auction, the Minister of Justice said that it is necessary to tighten some regulations to reduce collusion, price suppression, profiteering, especially causing loss of the State budget. In addition, it is necessary to have measures to enhance capacity, professionalize the auctioneer team as a special judicial profession; promote the development of online auctions.

Research on socialization of appraisal fields

Concerned about breakthrough solutions to overcome limitations in judicial appraisal activities, National Assembly Delegate Do Duc Hong Ha (Hanoi delegation) raised the issue: In recent times, the work of preventing and combating corruption has achieved many important results, however, there are still many cases that are slow to be handled, and many corrupt assets are not recovered.

The main reasons, according to the Delegate, are that judicial appraisal activities still have many limitations such as: Lack of attention, so all resources for this activity are still limited; there is still a mentality of avoiding blame and pushing; appraisal time is not reasonable; appraisal quality is not high...

Tighten regulations to reduce arbitrage in asset prices figure 3 — National Assembly Delegate Do Duc Hong Ha (Hanoi delegation) participated in questioning Minister of Justice Le Thanh Long on the morning of August 15.

From the above argument, Delegate Do Duc Hong Ha asked the Minister of Justice to tell us what is the breakthrough solution to overcome the above situation?

Responding to questions about forensic expertise, Minister Le Thanh Long said that this is something that the Central Steering Committee on Anti-Corruption and Negativity is very concerned about. The 2012 Law on Forensic Expertise has been amended and supplemented with 6 groups of issues that directly implement specific instructions from the Central Steering Committee on Anti-Corruption. Currently, the Central Steering Committee on Anti-Corruption and Negativity continues to have very specific instructions. The Minister said that the authority to appoint an expert must be direct, and that Article 26 on the appraisal period must be considered, and that it must be consistent with the Criminal Procedure Code in cases of mandatory appraisal...

Tighten regulations to reduce arbitrage in asset prices Figure 4 — National Assembly Deputies attending the session.

In addition, Minister of Justice Le Thanh Long also said that it is necessary to consider and amend Clause 1, Article 6 of the Law on Handling of Administrative Violations to extend the time limit for handling administrative violations in cases where it is later discovered that there are not enough elements for criminal prosecution. It is necessary to study the socialization of appraisal fields according to Resolution 49; clarify issues regarding funding, costs, and responsibilities of appraisal solicitors.

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