The Board of Audit and Inspection has raised concerns over potential financial losses, pointing out that Incheon Metropolitan City acquired land in return for financial support without properly verifying the intentions of interested parties.

The Board of Audit and Inspection disclosed the audit results on the management status of major construction projects and facility safety in Incheon today (October 13).

According to the audit agency, Incheon signed an agreement with a special purpose company in 2020 to develop a multi-purpose performance venue. Later, when commercial unit presales were sluggish, the city decided to provide financial support to the company in exchange for receiving the project site, which was under trust management, as a public donation.

However, while the city was required to obtain letters of commitment waiving rights from the trustee and senior priority managers during the land donation process, it provided 6.7 billion won first and decided to provide an additional 18.6 billion won without securing them.

The Board of Audit and Inspection pointed out, "Without means of enforcement, whether ownership can be acquired remains uncertain if rights holders under the trust agreement do not consent to terminating the trust in the future," adding, "There is a concern that financial losses could occur."

In addition, Incheon City awarded a construction contract before finalizing the road site due to civil complaints, and subsequently instructed the contractor to suspend construction citing failure to secure the site, causing prolonged delays.

Meanwhile, Yeonsu District arbitrarily reduced project costs while building a culture and arts center and pushed forward with the project without a feasibility review, resulting in wasted budget.

(Photo courtesy of the Board of Audit and Inspection, Yonhap News)