Dak Lak recovers nearly 10 billion VND in security from a project contract with increased capital and violations

The Buon Ma Thuot City capital increase project has many violations with the guaranteed amount of nearly 10 billion VND. Up to now, the investor has only recovered 3.3 billion VND.

The project's capital increased from 1,500 billion VND to 1,841 billion VND, with many violations - Photo: TRUNG TAN

On the evening of March 20, a source from Tuoi Tre Online reported that the project investor, who had increased capital and committed violations, was continuing to recover nearly 10 billion VND in contract guarantees from contractors.

There are three contractors in the Ho Chi Minh Highway project, the eastern bypass of Buon Ma Thuot (Eastern bypass) that owe the investor more than 6 billion VND out of 9.97 billion VND.

Previously, the Dak Lak Provincial People's Committee directed the Provincial Management Board of Traffic Construction Investment and Rural Development Projects (Board A) to urgently recover more than VND 9.97 billion in contract performance security from violating contractors at the Eastern bypass project.

According to the leader of Board A, up to now this unit has only recovered more than 3.3 billion VND.

The remaining 6.6 billion VND has not been guaranteed by banks for repayment, including: Saigon Construction and Trading Company Limited 4.7 billion VND; 470 Construction One Member Company Limited 1.5 billion VND and Phuong Dong Company Limited nearly 295 million VND.

The Provincial People's Committee requested the State Bank of Vietnam, Dak Lak branch (now in region 11) to urge the guarantee banks to repay this amount before March 20, 2025.

Previously, the Central Inspection Committee concluded that the project had increased its budget by tens of billions of dong and was seriously behind schedule. The reason was that Board A selected an incompetent contractor and had lax management, leading to violations of construction progress and quality.

Notably, Mr. Phan Xuan Bach - Deputy Director in charge of Department A - was disciplined with a warning for receiving money from contractors many times.

Although the Provincial People's Committee has proposed to dismiss him from his position, the Standing Committee of the Dak Lak Provincial Party Committee has not made an official decision, waiting for the results of the Government Inspectorate and State Audit on another project.

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Source: https://tuoitre.vn/dak-lak-thu-hoi-gan-10-ti-dong-bao-dam-tu-hop-dong-du-an-doi-von-dinh-sai-pham-20250320222137996.htm