Control of investment capital: Smooth coordination between the State Treasury and investors

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In 2018, the State Treasury reported to the Ministry of Finance to approve the method of "prepayment, post control" for multiple payment contracts to shorten payment time. Source: Internet

Prepayment, post control

According to the State Treasury's report, up to 12 hours on December 31, 2018, the accumulated investment capital disbursed through the State budget system is 276,646 billion VND. This result has reached 69.3% of the plan. In which: concentrated construction investment capital is 224,202 billion VND (accounting for 73.7% of the estimate); Government bond capital is 18,203 billion VND; national target program capital reached 31,387 billion VND; other capital reached 2,851 billion VND.

Although the proposed plan is not yet completed, but with the difficulties that are frequently related to the disbursement of public investment capital, the above results have shown a great effort by the State Treasury system to accelerate the disbursement progress of investment capital, helping investors with more convenient resolutions for capital sources, speeding up the progress of social security projects.

According to the State Treasury's leaders, for the control of capital construction investment expenditures, in order to speed up the settlement of expenditure control dossiers, the State Treasury reported to the Ministry of Approval of the method of "pre-payment, post control" for multiple payment contracts (except for the last payment), thereby shortening the payment time to 1 working day, contributing to speeding up the disbursement of investment capital in 2018.

At the same time, the State Treasury system periodically reported to the Ministry of Finance, Government, Party Committee and local authorities about the situation of controlling public investment capital, including specifying the reasons for slow disbursement, problems and suggestions. At the same time, the State Treasury at all levels also reported to the Ministry of Finance the situation of advance capital construction investment in the whole country, in which the advance cases were overdue but not recovered and proposed directions for handling; clearly reporting a number of problems regarding the process of considering and prolonging the capital transfer according to the provisions of Decree No. 77/2015/ND-CP of September 10, 2015 of the Government, and difficulties in importing ODA estimates into TABMIS system.

Particularly for the advance and recovery of capital construction investment, in the system of State Treasury there still occurs a number of overdue advances. Therefore, the State Treasury at all levels have reviewed the overdue advance balance and sent a written notice to the investor, the project management board urgently proposed procedures to recover the advance capital; at the same time, report to the People's Committee of provinces and cities to direct the investors and related departments and agencies to take direction for each case of overdue advance.

Effective coordination with investors

Investment project to upgrade the left bank of Luoc river dyke (section from K120 + 600 left bank of Red River to K20 + 700 left bank of Luoc river) in Hung Yen province is a project using investment capital from Government bonds and other legitimate sources of capital.

According to Mr. Ho Trong Khai, Director of the Sub-Department for Flood and Storm Control and Prevention, this is one of the key projects on upgrading dykes in Hung Yen province. Therefore, this project has been adjusted capital source quite a lot (1,498 billion VND to 1,052 billion VND). Right from the commencement of the project, the Department always focuses on disbursement plans and considers it as one of the main tasks of the unit so as to comply with the regulations in project management and bidding. In 2018, the remaining capital transferred from 2017 was over 383 billion VND. By December 31, 2018, this capital has been disbursed. In order to do that, assistance from the State Treasury was not small, specifically Hung Yen State Treasury in project management.

"Since this is a key project and there is a lot of change in capital, the documentation process has many difficulties. In the first phase, when working with the State Treasury officer, the documents were returned quite a lot, so the unit thought that the State Treasury intentionally caused difficulties. After that, with the enthusiastic guidance of the State Treasury’s civil servants with professional skills, gradually our payment documents are completed and regulated well. Thanks to that, the disbursement is favorable. Moreover, thanks to the strict and close control of Hung Yen State Treasury, the profile of this project is always complete, without any difficulties in the following stages, including with the inspection of the State Audit,” Mr. Ho Trong Khai shared.

Hai Duong State Treasury is also one of the units that disbursed investment capital quite well. According to the report, by December 31, 2018, this unit has controlled, paid and disbursed capital construction investment and national target program of 3,918 billion VND. This number reached 86.98% compared with the capital plan assigned in 2018 (including the number of early deliveries and additional numbers in the year), an increase of 6.3% compared to the same period in 2017 and estimated to reach 98.3% of the assigned capital plan by 31 January, 2019. To get this result, according to Mr. Vu Duc Trong, Director of Hai Duong State Treasury, in 2018, the investment on capital construction on one hand is always strictly controlled by the State Treasury, avoiding loss, waste, spreading investment, ineffectivness, ensuring the schedule, time of control and payment; If there is no record, on the other hand, Hai Duong State Treasury has seriously and strictly implemented the urgency to recover the advance. The active consultation with the Provincial People's Committee, in coordination with the related sectors, has also helped remove problems in the implementation of capital construction investment projects and national target programs.

Mr. Tran Van Lang, Director of Irrigation and Construction Management Board II, Ministry of Agriculture and Rural Development said that in Hai Duong province, the unit is implementing Cau Xe drain project. This is a project using centralized budget capital disbursed through Hai Duong State Treasury. With this project, according to Mr. Tran Van Lang, Hai Duong State Treasury has facilitated and worked quite well with the Management Board to help the project be completed on schedule. All documents sent to the State Treasury are always quickly and properly regulated, if any mistake, they are returned by Hai Duong State Treasury and the reasons explained in detail. Therefore, this project has many advantages and completed as planned in all items.

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"In the past, according to regulations, any project located in the province would have to work with the State Treasury in that province to disburse capital. Recently, with the new regulation, the unit has to work with only the State Treasury to disburse all projects. Through a working process, I decided to open an account at Hai Duong State Treasury to pay for all projects implemented by Management Board II,” - Mr. Lang said.

It can be said that the control of public investment expenditures of the State Treasury is always associated with the project investors. The way of working professionally as well as the professional skills of the public servants themselves has helped this work to be carried out smoothly, bringing good working results for both the State Treasury and the investors of the projects.