Who has the right to liquidate official State vehicles?

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Illustrative photo.

The conditions, jurisdiction and procedures for liquidation of official State cars are clearly stipulated in Article 25 of Government Decree No. 52/2009/ ND-CP detailing and guiding the implementation of some articles of Law on the management and use of State property; Clause 5, Article 2 of Decision No 32/2015 / QD-TTg of the Prime Minister on standards and management modes for the use of official State cars in State agencies, public service organizations and State-owned enterprises.

Specifically, official State cars which serve in State agencies, public service organizations and State-owned enterprises may be liquidated if they meet the following conditions: Cars used in excess of time according to the prescribed regulations; or at least 250,000 km (or 200,000 km for cars used in mountainous areas, remote areas and islands) or cannot continue to operate or are damaged and unsafe under the assessment of competent authorities.

Thus, the liquidation of official State cars in State agencies, public service organizations and State-owned enterprises shall be implemented in accordance with the above regulations in order to ensure safety and create favourable conditions for civil servants to maintain regular operations.

For liquidation procedures, the Ministry of Finance states: The liquidation of official State cars is applied under regulations of the sale of State assets; and demolition and disposal of assets of the State.

In cases where the remaining value of each official State car exceeds 50 million vnd, functional authorities shall auction these cars. The determination of price and auction for official State cars is stipulated according to the provisions of Article 22 of Decree 52.

If the remaining value of each official State car is below 50 million vnd, functional authorities may liquidate without auction. However, functional authorities can still apply the form of auction if they wish.

If in a consignment, there are both official State cars exceeding 50 million vnd and cars less than 50 million vnd, functional authorities will hold an auction to ensure efficient and convenient operations.

The income from the sale of liquidated cars shall comply with the provisions of Article 31 of Decree 52. Specifically, the amount from the sale of liquidated cars after deduction of related expenses shall be paid into the State Budget under the current provisions of the Law.

In cases where the funds from the sale of liquidated cars do not offset the cost, the deficit shall be paid from the State budget.

Speaking with a Customs Newspaper reporter, Mr. La Van Thinh - the Deputy Director of the Public Property Management Department under the Ministry of Finance affirmed: “At present, the liquidation of public assets and official State cars is managed by Ministers and Chairmen of Provincial People's Committees. After promulgation of the decision of liquidation of public assets and official State cars, a public auction shall take place in accordance with the law”.

Before the auction, functional authorities will calculate on the basis of accounting of the property and then put up for auction. Everyone has the right to participate in the purchase of these assets.

The value of public assets can fluctuate depending on the market price and the needs of buyers. In some cases, the value of vehicles on the accounting book is 0, but because of older cars, the value can reach billions vnd, especially for people desiring them.

For liquidation activities to be implemented transparently, Mr. Thinh said that functional authorities should manage the implementation process carefully when the liquidation decision is made.

Since 2010, the Ministry of Finance has applied information technology in management and supervision of asset liquidation. Currently, ministries and localities can easily update the database online after 30 days of assets being bought or sold.

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This database is also the information on the accounting books of units, as well as the country.