Saigon Industry’s divestment and land transfer under probe
Saigon Industry’s divestment and land transfer under probe
The Ministry of Public Security has asked the State-owned Saigon Industry Corporation (CNS) for relevant documents as it investigates the corporation’s divestment from two firms and its transfers of land in districts 3 and Binh Thanh, which allegedly caused heavy losses for the State, the local media reported.
In early 2017, the corporation had reportedly transferred its 51% stake in Saigon Electronics and Industrial Services Joint Stock Company (Sagel) for nearly VND21 billion (US$0.9 million). Meanwhile, Sagel was the owner of many land lots in prime locations in HCMC, including one at 119 Pho Quang Street in Phu Nhuan District, worth more than VND3 trillion.
Similarly, CNS has also divested from Telecommunication Industry Electronics Joint Stock Company (TIE), which holds many land lots in the city center.
In addition, CNS used the rights to exploit land lots in districts 3 and Binh Thanh as its capital contribution to Hoa Mai Trading & Service Co., Ltd, in late 2015. These land lots were valued at some VND60 billion, while the market price was over VND200 million per square meter at the time. Thus, CNS’ land transfers could have caused losses of trillions of Vietnamese dong.
Early this year, the HCMC government decided to suspend the transfer of some land lots owned by CNS and to launch an investigation into the firm’s management, production and business activities and use of State capital from 2015 to 2018.
Meanwhile, CNS General Director Chu Tien Dung argued that it is baseless to suggest its divestment from Sagel and TIE had caused losses of trillions for the State.
Dung claimed the divestment was conducted in line with the directions of the Government and the HCMC government, following all necessary procedures, including hiring an independent consulting firm to appraise the value of Sagel and TIE, drawing up divestment plans and submitting them to HCMC’s competent agencies for approval and putting up for auction its stakes in the two firms.
The land lots of Sagel, TIE and Hoa Mai are all State assets. These firms have to annually pay rent for the land to the city, but they have yet to get the city’s approval to change the land use purpose, Dung added.
Meanwhile, Hoa Mai Trading & Service Co., Ltd, announced it had put on hold its investment in a land lot at 181 Dien Bien Phu Street in Binh Thanh District and another at 200 Vo Van Tan Street in District 3 from January 8. The company has returned the two land lots to the HCMC government.
After three years, the city has yet to set the rent for the two land lots, seriously affecting Hoa Mai’s investment and business development strategies, it said.
