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Inspectors find numerous breaches at HUD

Released at: 11:52, 26/05/2015

Inspectors find numerous breaches at HUD

State-owned housing and urban area developer involved in series of questionable activities.

by Tue Lam

Government inspectors have uncovered serious violations in real estate investment and financial management at the State-owned Housing and Urban Development Corporation (HUD).

Since 2011 the corporation has been involved in many projects that exceeded its financial capacity, leading to delays and heavy losses.

HUD was also negligent in its management of many large-scale projects. Upon completing the technical infrastructure at these projects it failed to continue with its investment or assigned secondary investors, while still authorizing investments by its subsidiaries. Such behavior was in violation of its Charter.

Other violations relating to investments and losses were also found, for example construction diverging from approved plans to increase floor space and profits.

The government inspectors proposed the Prime Minister direct the Ministry of Construction to impose legal sanctions and recommended the ministry and the Hanoi People’s Committee review and punish the individuals involved in the breaches.

HUD is 100 per cent owned by the State, with parent - subsidiary operations. Its main business lines are investments in business development and residential, urban area, and industrial real estate.

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