State-run Vietnam National Tobacco Corporation (Vinataba) has disobeyed the Prime Minister's direction, breaching the law in the transfer of "golden land" in Ho Chi Minh City.
The tabacco giant was found to have violated the law on transfer of assets at companies wholly owned by the state.
The plot of land at 152 Tran Phu street is considered "golden land" given its location at the center of District 5. Facing Tran Phu, Le Hong Phong and Tran Nhan Ton streets, the land is a rare plot left unoccupied in the metropolis.
The site was previously home to a tobacco factory of the Saigon Tobacco Company Limited, a 100%-owned subsidiary of Vinataba. After the factory was relocated, the land was used as capital contribution for a commercial project.
The Government Inspectorate, in a conclusion, stated Thursday that Vinataba had committed violations in using the plot of land as capital contribution.
Specifically, Vinataba not re-assessing the assets is a breach of regulations on management of state-owned company assets, and against the Prime Minister's orders.
The corporation went against the law on the transfer of assets at companies wholly owned by the state when transferring nearly 30,928 square meters at 152 Tran Phu street without seeking the Prime Minister's permission. It did not hold an auction on the land use right, causing risks of losses to the State and company.
The inspectors also pointed out that Vinataba's implementation of the project at 235 Nguyen Trai street in Thanh Xuan district, Hanoi showed violations. Prolonded implemenation of the project impacted the relocation progress of the Thang Long tobacco factory and undermined the efficiency of state capital use at Vinataba.
"It has been more than 10 years since the Prime Minister allowed the project to be implemented. Many mechanisms, policies, laws on land, investment and management of state assets at enterprises have changed, but the project has not actually been implemented. It is necessary to report the situation to the Prime Minister before continuing the project," the conclusion states.
In addition, some investment projects of the company are behind schedule, with procedures adjusted many times, affecting the efficiency of state capital use and business efficiency.
Notably, regarding these two plots of land, the inspectorate proposed the Prime Minister directs the Commission for the Management of State Capital at Enterprises and relevant ministries and agencies to reclaim the land at 152 Tran Phu street and manage related problems.
In the course of implementation, if detecting signs of crime or not being able to reclaim the land by December 31, 2023, the Ministry of Public Security's investigative agency will investigate and manage the case as per the law.
In addition, the inspectorate proposed the Prime Minister direct Vinataba to report on the project implementation process at 235 Nguyen Trai street to seek the Prime Minister's opinion before continuing the implementation. In case the land use right is transferred, it must be auctioned in accordance with the law.
The inspection agency also pointed out a series of violations of Vinataba related to the management and use of capital and assets; importing raw tobacco, planting, and processing tobacco ingredients; the organization of overseas trips for some people for wrong purposes. The origin of tobacco ingredients of private company Tuan Dung sold to a number of Vinataba's member companies showed signs of legalizing illegal tobacco ingredient sources.
In particular, the inspectorate proposed the Prime Minister directs the Ministry of Public Security to investigate and clarify the case of raw material sale of Tuan Dung as it showed signs of tax evasion.