Applying sanctions to handle violations in finalization of completed projects

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Many projects have slow disbursement progress due to incomplete acceptance, handover and settlement of completed projects. In the photo: Cat Linh - Ha Dong urban railway project. Photo: ST

Only 70% offinal settlement is required

The Ministry of Finance has summarized the report data of 125 of 143 units on the settlement of completed projects in 2019, including 43 of 54 ministries, central agencies and agencies, 19 of 26 groups, and State companies and all 63 provinces and cities directly under the Central Government.

The combined results show that the aforementioned 125 units have completed 95,303 projects with a total approved investment value of VND2,160,151 billion, of which 66,665 projects have been approved for final settlement (accounting for 70% of the total projects completed) with total approved investment value of VND981,501 billion and approved settlement value of VND773,094 billion. The number of unapproved accounts is 29,038 projects (accounting for 30% of the number of completed projects) with a total investment of VND1,178,650 billion.

Through the verification and approval of the settlement of the project, the settlement agency of ministries, branches, groups, corporations and financial agencies at various levels of the city will be removed from the proposed value, accounting for VND3,594 billion, accounting for 0.46% of the total value proposed for settlement. In fact, many projects are behind schedule for disbursement due to incomplete acceptance, handover and settlement of completed projects. In particular, there are a number of projects such as the project connecting the central region of the Mekong Delta, the project of Cat Linh - Ha Dong urban railway, the Ho Chi Minh road project, Chu Se bypass.

The State Treasury units at all levels always coordinate closely and guide the units in completing the dossiers, as well as procedures for advance and payment, ensuring that all dossiers and documents are eligible for capital payment. Investments sent by investors and project management boards to the treasuries shall be settled strictly according to the prescribed regime and time. At the same time, the Treasury also urges the investors and the project management board to speed up the project progress, take over the acceptance when the completed volume and complete the dossier of procedures sent to the Treasury to control the payment and recovery of advance capital, avoiding accumulation at the end of the year, which causes difficulties for expenditure control and disbursement.

Synchronous management mechanism

Facing this fact, the Ministry of Finance has sent a written request to the heads of ministries, central agencies, corporationsand People's Committees of provinces and centrally run cities to review and clarify theresponsibilities of organizations and individuals that do not send the financial statement of completed projects in 2019 to the Ministry of Finance as prescribed. On that basis, soon complete the report sent to the Ministry of Finance. In addition, it is necessary to direct relevant agencies to review and remedy the shortcomings of the completed project settlement reports, especially units that have existed since 2018.

Ministries, branches, localitiesand corporations should direct professional agencies, investors and relevant units to strictly implement the regulations in the settlement of completed projects; resolutely apply the handling sanctions guided in the current legal documents to violating investors and contractors. At the same time, directing the investor, the project management board and relevant units to accelerate the formulation, verification and approval of the settlement of completed projects strictly according to the regulations of the Ministry of Finance; resolutely direct quick handling and reducing the backlog of annual completed projects; direct and prioritize the arrangement of resources (personnel, material) for the verification of the settlement of completed projects.

For units in charge of verifying and settling final accounts, the Ministry of Finance shall propose to prioritize allocating reasonable resources for the verification of the settlement of completed and proactive projects in the summary of reports and guide investors and project management boards to make completed project settlement reports according to the regulations.

For investors, project management boards and contractors, it is necessary to strictly abide by the regulations on the time for making dossiers of final settlement of completed projects; improve capacity, comply with state regulations on management of investment projects; actively coordinating with the settlement examination agency to supply information in the stage of final settlement verification; manage and keep records in accordance with regulations to ensure sufficient records when project settlement is completed. In addition, the contractor should actively coordinate with the investors, prepare and provide documents as prescribed to perform the settlement of completed projects.

Recently, the Ministry of Finance issued Circular No. 10/2020 / TT-BTC stipulating the settlement of completed projects using state capital to limit and overcome problems and inadequacies in project settlement,which are completed over time.

Besides, to resolve more thoroughly, the Ministry of Finance has drafted a decree to submit to the Government regulations on management, payment and settlement of projects using public investment capital to complete the mechanism, management of payments, settlement with the scope of public investment capital in accordance with the Law on Public Investment 2019. This draft contains all specific provisions on the policy on management and payment of public investment capital, on checking allocation, advance, and payment of capital; on the settlement of the situation of the use of public investment capital from the annual state budget.

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Notably, the draft decree clearly stipulates the regime of reporting, inspecting and handling violations, and powers and responsibilities of organizations and individuals in finalizing completed projects.