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Why Dai Nam Joint Stock Company is under scrutiny?

Part 2: Give him an inch and he'll take a yard!

Part 1: Not the fault finding game!

The inspection team confirmed that not only many temporary constructions, ticket booths, toilets… within the 167 works violated construction regulations but also many solid works invested by Dai Nam Joint Stock Company (Dai Nam JSC) had not had construction permit and construction work ownership certificate. There were also works not to be in line with the planning. Were we “giving DAI NAM JSC an inch and he'll take a yard”?

Give him an inch…

Why did we say that we “giving Dai Nam JSC an inch and he'll take a yard”? The past Song Be and the current Binh Duong have the same positive characteristic in socio-economic development; that is creating the most favorable conditions for domestic and foreign investors to do business based on the legal framework. Binh Duong province has been famous for preferential policies to investors. Of course, Dai Nam JSC was not an exception.

Therefore, while constructing Dai Nam tourist area (formerly known as Huynh Long tourist area), the company received preferential treatments based on laws and regulations from the province. Since this was a new project having a particular architecture and being able to have positive effects on provincial socio-economic development, provincial leadership approved of Dai Nam JSC constructing this tourist area’s works in the form of designing and construction at the same time, and assigned c to handle and monitor.

Conclusion No. 2735/KL-UBND dated August 13, 2015 of Binh Duong Provincial People’s Committee regarding violations of construction investment of Dai Nam JSC. Photo: P.V.

It must be affirmed that this treatment was merely to create favorable conditions, not to grant the building permit, for Dai Nam JSC in the construction process of Dai Nam tourist area under the supervision of did not granted the building permit. And obviously, at least after the project’s completion, Dai Nam JSC must fulfill construction licensing procedures according to laws. Therefore, Dai Nam JSC can construct and design the project at the same time but cannot ignore basic legal procedures of construction after completing works.

…and he'll take a yard!

Conventionally, after enjoying preferential treatments, the investor of Dai Nam tourist area have to perform their legal responsibilities. That was fulfilling construction permit procedures and construction work ownership registration. But in fact, Dai Nam JSC did not do that, Dai Nam JSC really “took a yard”!

On July 10th 2009, after examining Letter No. 1388/SXD-KTKT dated June 26th 2009 of Department of Construction on proposing handling illegal constructions of Dai Nam JSC, Binh Duong province People's Committee promulgated Letter No.1913/UBND-KTN to agree for Dai Nam JSC to do construction permits and register ownership to construction works of Dai Nam Van Hien Hotel, Dai Nam Convention, Dai Nam Beach, Dai Nam Amusement Park. Dai Nam JSC must be administratively penalized for construction violations; Department of Construction was assigned to instruct Dai Nam JSC to fulfill construction permit procedures and construction work ownership registration. On September 18th 2009, provincial People's Committee issued Decision No. 3454/QD-CT on administrative penalties for violations in the field of construction, and required Dai Nam JSC must apply for construction permits according to laws.

Nevertheless, Dai Nam JSC continued to execute their project without permission from 2009 to 2011. Specifically, according to Inspection Conclusion No. 2735/KL-UBND dated August 13th 2015 of Binh Duong province People’s Committee’s Chairman, by the time the inspection team carried out the verification, Dai Nam JSC had 4 works not in accordance with licensed construction permit, construction work ownership certificate in terms of floor number, total building area; 167 works, including 4 works being inconsistent with the planning, were completed but had no construction permit and construction work ownership certificate. These actions violated provisions under Decree No. 121/2013/ND-CP dated October 10th 2013, Decree 23/2009ND-CP, Decree 126/2014/ND-CP of the Government...

In particular, not only temporary works, ticket booths, toilets… within the 167 works violated construction regulations but also many solid works invested by Dai Nam JSC had not had construction permit and construction work ownership certificate. For example, tourist service center (2010), petrol stations (2010), ticket checking gates (2013)... At the time of inspection, all these construction works were completed by Dai Nam JSC 4 years ago but did not fulfill construction permit procedure and construction work ownership registration. This violated regulations on construction order under Point c, Clause 2, Article 11 of Decree 23/2009 of the Government “investor constructs a work without compulsory construction permit”. The investor would be fined from VND30-40 million (if the sanction prescription was still valid), was required to take remedies and was forced to dismantle works according to Decree 180/ND-CP…

Dai Nam JSC’s violations of capital construction were verified by the inspection team. We live in a society where all citizens respect the law. Dai Nam JSC enjoyed preferential treatments during constructing Dai Nam tourist area, but then continued to violate regulations on construction. Was this the case of “giving him an inch and he'll take a yard”!?

According to Inspection Conclusion No 2735/KL-UBND dated August 13th 2015 of Binh Duong province People's Committee’s Chairman, by the time the inspection team carried out the verification, Dai Nam JSC had 4 works not in accordance with licensed construction permit, construction work ownership certificate in terms of floor number, total building area; 167 completed works, including 4 works being inconsistent with the planning, were completed but had no construction permit and construction work ownership certificate. These actions violated provisions under Decree No. 121/2013/ND-CP dated October 10th 2013, Decree 23/2009ND-CP, Decree 126/2014/ND-CP of the Government... Total fines were VND 190 million, and the investor was required to take remedies and was forced to dismantle works.

Reported by P.V - Translated by Ngoc Huynh

 

 

 

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