The government of Ha Long city has requested the Quang Ninh province to reclaim a part of FLC’s real estate project, Ha Khanh Urban Area, in Ha Long city due to the state budget debt of nearly VND 100 billion.
FLC project in Ha Long still owes arrears fines for illegal water exploitation and compensation for forest trees totaling more than 12 billion VND. Photo: Quoc Nam.
On March 20, a representative of the People’s Committee of Ha Long city stated that the city government had sent Document No. 1552 to the provincial People’s Committee of Quang Ninh proposing that the province consider and decide to reclaim the land of the urban area project in Ha Khanh ward, Ha Long city of FLC Group Joint Stock Company (FLC).
The reason for reclaiming the project is that FLC has not fulfilled its obligation to pay money into the state budget, with a total outstanding debt of more than VND 97 billion.
Specifically, in Phase 1 of the Ha Khanh Urban Area project, the total land use fee still owed as of February 28, 2023, for the additional land use fee due to the adjustment of the project implementation time was nearly VND 75 billion (including nearly VND 73 billion of tax debt and nearly VND 2 billion of late payment penalties), corresponding to 26% of the residential land fund, which is 26,350 square meters of land transferred by the provincial People’s Committee to FLC Group Joint Stock Company (Phase 1).
In Phase 2 of the Ha Khanh Urban Area project, the total land use fee still owed for the additional land use fee (Phase 2) is over VND 22 billion (including more than VND 21 billion of tax debt and over VND 574 million of late payment penalties), corresponding to 16.84% of the residential land fund, which is 20,359.4 square meters of land transferred by the provincial People’s Committee to FLC Group Joint Stock Company (Phase 2).
In addition, in the document issued on February 20, the provincial People’s Committee of Quang Ninh issued Decision No. 412/QD-UBND approving the amount of illegally earned benefits by FLC Group Joint Stock Company from exploiting and using water to irrigate the golf course while not having a permit, in which FLC Group Joint Stock Company is required to pay a fine of over VND 8 billion into the budget.
At the same time, in implementing Conclusion No. 25/KL-TTr dated September 18, 2020, of the Inspection Committee of Quang Ninh province regarding two projects (Ngôi Sao Ha Long Golf Course Project and FLC Ha Long Central Conference, Service, Resort and Villa Complex Project in Columns 3 to 8, Ha Long city), the People’s Committee of Ha Long city issued Documents No. 7160/UBND-KT dated September 15, 2022, No. 8416/UBND-KT dated October 28, 2022, and No. 482/UBND-KT dated February 02, 2023, on implementing Conclusion No. 25/KL-TTr, in which FLC Group Joint Stock Company is required to pay forestry charges within the reclaimed boundary, an amount of over VND 4.3 billion into the state budget according to Conclusion No. 25/KL-TTr dated September 18, 2020 of the Inspectorate of Quang Ninh province.
So far, FLC Group Joint Stock Company has not yet paid the two aforementioned amounts, totaling over 12.4 billion Vietnamese dong, corresponding to 7.25% of the land fund which is 8,764.0 square meters of land that the Provincial People’s Committee has allocated to FLC Group Joint Stock Company (in phase 2).
To ensure budget collection and strictly comply with regulations on land, construction, and finance, the People’s Committee of Ha Long City has proposed that the Provincial People’s Committee partially revoke the land area in the Urban Area Project in Ha Khanh Ward, which is owned by FLC Group Joint Stock Company as the investor, and return it to Ha Long City People’s Committee for management and proper land use according to regulations.
A representative of Ha Long City People’s Committee stated that as of now, the Provincial People’s Committee has assigned the Department of Natural Resources and Environment to review and carry out the necessary procedures before making a decision to revoke the project land of FLC Group Joint Stock Company.