The wreckage is surrounded for investigation on February 2. (Photo: SGGP)

Ho Chi Minh City’s District 1 People’s Committee on February 2 fined Saigon M&C Real Estate JSC, the investor of the 40-storey Saigon M&C building, VND25 million for causing the collapse of two homes on January 31.

The committee said the company had failed to ensure quality management of the building’s construction and ordered it to take responsibility for the wreckage. 

Thai Duc Do, District 1’s chief construction inspector, told Sai Gon Giai Phong Daily that the building’s construction would be suspended while officials evacuated nearby residents and investigated other homes for signs of damage.

The city’s Department of Construction also ordered Saigon M&C to install equipment at neighboring construction sites to monitor infrastructure and prevent further damage.

According to Nguyen The Dinh, chairman of Nguyen Thai Binh Ward’s municipal committee, cracks had appeared on Ham Nghi Street houses for two weeks prior to the collapses.

It was discovered that gaps in the building’s foundation had allowed underground water to leak in, leading the ground to sink and disrupting the foundations of nearby homes.

Local authorities had encouraged families to move out earlier, but the project’s investor and local residents had not had an agreement about evacuation.

Saigon M&C must make a report about how it is dealing with the problem, as well as draw up a compensation scheme for the affected households by February 4, said Chairman Dinh, adding that the company will be allowed to resume operations only once it can ensure safety. 

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