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Property bidder says will sue Government for huge damages
Khanh Gia Consortium, which was claimed the loser in a bidding round early last year to develop a property complex in HCMC, has threatened to file a lawsuit against the Government to demand a hefty compensation amount of nearly US$120 million if it is not awarded the deal.
Lam Truc Nho, General Director of Khanh Gia Joint Stock Co. as a member in the consortium, told the Daily on Monday that three Korean companies as partners in the consortium were working with a British law consultant to prepare for the lawsuit at an international tribunal.
“SsangYong, Doosen and PungKyung are preparing proceedings against Vietnam’s Government in case the Government cancels the bidding result,” he said.
Khanh Gia Consortium was defeated by Thai Son Consortium in the final round of the bid for developing a 55-story complex on an area of 13.000 square meters surrounded by Tran Hung Dao, Nguyen Thai Hoc and Pham Ngu Lao street in HCMC’s District 1.
Referred to as the bidding round, but the competition was meant to choose the more financially capable investor who pledged to invest more money to add value to the prime-site land lot. In this race, whoever pledged to invest more money into the “golden land” would be favored to win.
Right after the outcome of the bidding round to compete for the “golden land” project in downtown HCMC, the loser lodged complaints to authorities over alleged irregularities in the bidding process. Its loudly-voiced complaints resulted in a probe into the case conducted by the Government’s inspectors, and later the proclaimed withdrawal by Thai Son Consortium as the winner.
“The three Korean companies of our consortium (of four) are demanding the Government to select Khanh Gia Consortium as the subsequent winner after Thai Son Consortium late last month decided to withdraw from the project,” Nho said.
The Government’s inspectors late last month proposed solutions to cancel the bidding result of the project, but suggested satisfactory compensation for bidders over expenses in the process. However, the unthinkably huge compensation as claimed by Khanh Gia Consortium may stun authorities involved in the case.
Nho said Pung Kyung Company in his consortium put the total financial damage at nearly US$120 million, and “this financial damage needs to be satisfactorily compensated otherwise a lawsuit will be brought to an international court.”
In the final round of the competition early last year, Khanh Gia Consortium offered an investment sum of VND7.1 trillion, or some US$415 million, to develop the property complex, and agreed to donate some VND360 billion as goodwill support for the city’s budget. However, this consortium still lost this competition as Thai Son Consortium as the winner pledged a lower investment sum of VND6.9 trillion, but offered a higher financial support of VND1.9 trillion.
Nho said that the next steps of Khanh Gia Consortium would depend on the final decision of the Government and he also confirmed that Khanh Gia Consortium really wanted to develop the project rather than to seek compensation.
VietNamNet, SGT
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