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Construction of controversial Zhengzhou villa project stopped

(chinadaily.com.cn)
Updated: 2009-07-13 15:54

Construction of a high profile property project in central China’s Henan province, on a site meant for affordable housing for low-income residents, has been called for a halt by the local government.

Related readings:  Property prices edge up in June  Commercial property norms relaxed  Property developer under probe after apartment collapse  US property dealers eye wealthy Chinese

The municipal government of Zhengzhou, capital of Henan, completed its initial investigation and found the developer guilty of building 12 villas and two mid-rise buildings without government approval, according to local reports.

The developer was fined up to 10 percent of the total estimated cost of the whole project.

However, local governmental departments, such as the urban planning development administration and bureau of land and resources, accused of negligence，were excluded from punishment.

So far, Lu Jun is the only local official who has been suspended from his post and is now under investigation for making a statement regarding the controversy that outraged the nation.

Lu, vice director in charge of the city’s urban planning and development, recently asked a reporter interviewing him: "Will you speak for the Party, or will you speak for the people?"