The Danang people’s committee has allegedly sold many prime pieces of land to certain companies at throwaway prices.

One such is a 22,700-square-metre plot at 209, Truong Chinh Street, Thanh Khe. It was managed by the Ministry of Defense Military, which, last September allowed the people’s committee to convert its land use to develop the economy.

But instead of auctioning off the land, the people’s committee sold it to Thien Thanh Corporation for building a shopping mall.

Thien Thanh paid VND70 billion (USD3.5 million) though the minimum official rate in that area would be VND140 billion ̣̣̣(USD6.79 million).

When asked about the reason wht it did not auction off the land but Nguyen Van Can, a people’s committee spokesperson, refused to comment.

Thien Thanh was earlier given 5.5 hectares in the city centre at a price of VND25.3 million ($1,265) per square metre, a third of the market price.

Nguyen Thanh Trung, head of the people’s committee’s Economic Department, said prices had to be lowered to attract investors.

There have been other similar cases. In February the people’s committee sold 15,421 square metres on Truong Son Street to the Construction Corporation Bac Nam 79 for VND3.7 million (USD185) per square meter to build a shopping mall.

Local real-estate firms said the market price of this land would be no less than VND20 million ̣(USD970) per square metre.

The official price meanwhile is VND4.5 million (USD218).

Can said Construction Corporation Bac Nam 79 was a “special” firm and so enjoyed special privileges.

But the firm’s business license has nothing to indicate this.