Numerous violations found in FLC’s million-dollar projects

The Ministry of Construction (MoC) just concluded the investigation of two of FLC's projects in Sam Son in the central province of Thanh Hoa) and Nhon Ly in the central province of Binh Dinh.

The investigation focused on FLC’s implementation of the construction plan, quality management, and real estate business operations. A 7-page report shows numerous violations by the people’s committees of Thanh Hoa and Binh Dinh, as well as the developer of the projects, FLC.

FLC Sam Son has a total area of 200 hectares, with the total investment capital of VND5.5 trillion ($242.3 million). The resort complex includes an 18-hole golf course, a convention centre, a luxury resort, a hotel, a villa complex, and an amusement centre, many of which have been operating since 2015.

FLC Quy Nhon has a total area of 1,300ha, with the total investment of VND7 trillion ($308.3 million), and has been in operation since July 2016.

Regarding FLC’s project in Thanh Hoa, MoC inspectors said that the Thanh Hoa People’s Committee had approved the golf course construction plan in 2013, 11 months prior to the prime minister’s approval.

The Thanh Hoa People’s Committee also allowed the conversion of more than 11ha of protective forest land into the golf course land area, which violated the PM’s regulations. The committee also allowed the conversion of more than 11 additional hectares of protective forest land for the construction of FLC Sam Son resort without meeting the conditions set by the government on the implementation of the Law on Forest Protection and Development.

The Thanh Hoa People’s Committee also failed to officially approve the 1:500 planning for FLC’s resort and golf course in Quang Cu, Sam Son.

FLC Sam Son Beach & Golf Resort in Thanh Hoa

The Department of Construction issued construction permits for two constructions in the FLC Sam Son project and one construction in the FLC Golf Links after they were finished. Two construction components in the FLC Sam Son project and two construction components in the FLC Golf Links project have been finished without ever receiving construction permits.

Regarding the luxury resort and golf course in Binh Dinh, the inspectors said that the Binh Dinh People’s Committee approved a 1:500 construction plan that was incompatible with the 1:2000 plan.

The Binh Dinh Economic Zone Management Authority issued seven permits for construction components already finished in this project and five construction components have been finished despite having no permits.

Regarding FLC, the inspectors said the developer has committed various violations in construction planning. In both projects, the developer also lacked proper documentation of construction surveys or performed surveys improperly.

A large number of construction components in both projects lacked construction quality management records. Particularly, in FLC Sam Son, the developer built and put into operation without permits a 7-story hotel with a total area of more than 4,000 square metres.

Another 15-story hotel covering a 75,000-sq.m area, a resort, and other technical infrastructure also started construction without permits. Other construction components have not been inspected for fire prevention and protection.

Similar violations were uncovered in the FLC Quy Nhon project.

FLC Quy Nhon Beach & Golf Resort

The consultant, survey, and monitoring units as well as contractors of the two projects also had no permits, according to the MoC inspectors.

MoC requested the people’s committees of Thanh Hoa and Binh Dinh to hold the individuals and organisations responsible for the above mentioned violations accountable.

MoC also requested FLC to cease all construction activities, carry out quality inspection, and satisfy legal requirements on quality control for the finished construction components.

Regarding the nine construction components already finished without permits, including resorts, golf courses, and shopping centres, among others, MoC requested FLC to obtain the appropriate construction permits, carry out construction quality assurance, and receive inspection from appropriate management agencies before putting them into operation.

Regarding the 10 construction components finished with permits, MoC requested FLC to carry out quality inspection again and complete all relevant legal requirements.

MoC expected the people’s committees of Thanh Hoa and Binh Dinh, involved departments and agencies, and FLC to submit a report on the implementation of these requests by September.

When asked, FLC’s representative stated that the company has received the inspection conclusion and is working on corrective measures and completing relevant procedures. The representative also explained that “the construction components carried out without permits are all of a small-scale or spiritual nature.”

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