The Ministry of Public Security's investigation agency recommends closely monitoring and publicly disclosing asset valuation activities.

Defendant Nguyen Van Hau (top left) and his accomplices in the case - Photo: CAND

According to the Investigation Conclusion of the Ministry of Public Security's Investigation Police Agency, the case that occurred at Phuc Son Group and related units is a typical example of the contractor colluding with the project investor to disclose information and provide bid package estimates.

According to the Investigation Agency, for many years, the Asset Valuation Council at all levels has used the asset valuation results of valuation enterprises as the basis for deciding and requiring enterprises that are project investors to fulfill their financial obligations to the State. However, during the operation, a number of individuals involved in valuation enterprises (enterprise directors, appraisers, etc.) have engaged in negative behavior, being influenced by subjects to distort the proper operation of asset valuation in the direction of reducing the amount of money that must be paid to the State by deliberately collecting comparison samples as the basis for valuation of assets in the wrong location, with similar values, to issue Valuation Certificates with low values. On that basis, the Asset Valuation Council approved and required enterprises to fulfill their financial obligations to the State with amounts lower than prescribed, illegally benefiting, causing property damage to the State and organizations.

The law on construction investment and bidding stipulates that enterprises selected as project investors and construction contractors must have revenue and equity capital to ensure the total investment of the project and the value of the bidding package. In order to have financial capacity in accordance with these requirements and regulations, subjects at some enterprises have colluded with subjects at auditing companies to falsify and inflate data on revenue and equity capital, so that agencies, organizations and project investors have selected enterprises as investors and contractors that do not meet the conditions and capacity, leading to projects and construction works not completing on schedule, being prolonged, being subcontracted, causing damage, loss and waste of State and organizational assets.

The investigation agency assessed that the case that occurred at Phuc Son Group and related units was a typical example of the construction contractor colluding, colluding, and conspiring with the project investor to disclose information and provide bid package estimates, thereby giving the enterprise the conditions and opportunities to win the bid at a very high price, close to the bid package estimate price. In particular, the investor in the construction estimate used the unit price of raw materials as announced by ministries, branches, and localities, but did not care or pay attention to the actual market price of raw materials, leading to the estimate being built at a very high cost, not economical, causing loss of State and organizational money.

From this situation, the Investigation Police Agency of the Ministry of Public Security recommends that the Ministry of Finance organize management, closely supervise and publicize the asset valuation activities of consulting enterprises used by the Asset Valuation Council (local, ministerial level) as a basis for asset valuation and collecting money for the State, avoiding subjects taking advantage to intervene and distort the valuation results, leading to damage to State assets and organizations.

The Ministry of Finance strictly inspects and controls the audit results of auditing companies that confirm financial reports, revenue, expenses, and equity of enterprises used as financial capacity to be approved and recognized by competent authorities as project investors and construction contractors, limiting the exploitation of subjects to intervene and inflate actual capacity to be selected as investors and construction contractors, leading to the situation of project implementation not being guaranteed, prolonged, and subcontracted, causing loss and waste of State and organizational assets.

The Public Security Agency also recommended that the Ministry of Construction study, evaluate, and advise on proposals to amend and supplement legal regulations related to construction norms and unit prices in the direction of the estimated price of project construction items being consistent with actual costs according to market prices, ensuring the principle that enterprises implementing project construction are profitable in terms of maximum savings, avoiding loss of State assets.

In the case of Phuc Son Group, the Investigation Agency recommended that the Ministry of Finance and the People's Committees of the provinces consider administrative sanctions against the valuation and bidding consultancy companies that committed violations as concluded in the case (suspend business, revoke certificates of eligibility for valuation and bidding consultancy services).

Vu Phong