Dak Lak: Livestock production project not as expected

Dak Lak Province had given priority to Sao Do Company’s livestock production project, but it did not meet expectations as planned and revealed many mistakes.
Dak Lak: Livestock production project not as expected ảnh 1

The livestock production project of Sao Do Company shows many violations. (Photo: SGGP)

The livestock production project of Sao Do Company was expected to create socio-economic development and jobs, and improve income for people in M'Drak District, so Dak Lak Province gave many preferential policies to the company. However, after 12 years of implementation, the project did not meet expectations as planned and revealed many mistakes.

In April 2010, the People's Committee of Dak Lak Province leased 1,513ha of land to Sao Do Company for 50 years for raising livestock for meat in Ea Lai Commune in M'Drak District in Dak Lak Province.

The project has a total investment of nearly VND224 billion, excluding site clearance costs, with a stable scale of 13,000 cows. The project planned to grow corn kernels, young corn, soybeans, and other types of cow feed, manage and protect 71.5 ha of natural forests, and grow 96.5ha of plantation forest.

The project was expected by Dak Lak Provincial People's Committee to contribute to local agriculture and socio-economic development, creating jobs, and improving income for local people, so the province had many preferential policies for the project, such as giving an advance of more than VND55 billion to carry out site clearance, land rent exemption for the afforestation area, and land rent exemption for 15 years for the cattle raising area.

According to the plan, the project would be put into operation in 2012. However, by the end of December 2022, Sao Do Company had just implemented the project on more than 400ha of land (construction of barns and other categories). More than 1,000 hectares of the remaining land were mostly encroached on and occupied by local people. The natural forest area assigned to Sao Do Company to manage and protect was deforested and occupied, leaving only a small area. Not only that, many households with land in the project area have not yet received compensation.

Mr. Vo Duc Nhan, Chairman of the People's Committee of Ea Lai Commune, said that according to the plan, Sao Do Company would recover more than 1,500 hectares of land, including about 500 hectares of 314 households and about 1,000 hectares of forestry companies. However, up to now, the project owner has only paid compensation for about 212 households. The remaining 100 households have not yet received compensation, or only partially received it.

According to Mr. Nguyen Duc Thao, Vice Chairman of the People's Committee of M'Drak District, Sao Do Company's cattle-raising project for meat has not achieved the set plan, has not contributed much to increasing local budget revenue, and has not had any impact on changes in the local economic structure. Currently, Sao Do Company has only used more than 400ha of land for that it paid compensation. The company has made a written document to return the remaining 1,000ha of land because it no longer needs to use.

Recently, the Government Inspectorate inspected and concluded that Sao Do Company's investment and development project on livestock production for meat has many violations.

Particularly, in terms of natural forest management, the investor is responsible for managing and protecting 71.5 hectares of natural forest, but now there are only more than 20 hectares, a decrease of more than 51 hectares compared to the original area. The People's Committee of Dak Lak Province gave Sao Do Company an advance of more than VND55 billion to support the investor in compensation and site clearance. However, so far, the investor has not refunded, leading to the risk of State budget loss.

Therefore, the Government Inspectorate proposed the People's Committee of Dak Lak Province to request the project investor to return the VND55 billion advance, adjust and recover the unused land area, sign a land lease contract, and slap penalty on the investor for violations in project implementation.