List of "runaway" contractors punished by Hanoi Regional Reserve Department

List of enterprises "defaulting" on rice contracts in Hanoi area in 2023

According to information published by the State Reserve Department in Hanoi, in 2023, 4 enterprises were fined for "running away" without fulfilling contracts to supply rice to the national reserve.

Dong Phuong General Trading Company Limited (Dong Phuong Company), located at Mrs. Bui Thi Quy's house, Kim Village, Vu Lac Commune, Thai Binh City, Thai Binh Province, was fined 665 million VND. The reason is that the company refused to fulfill the contract to supply 1,000 tons of rice.

Van Loi Company Limited (Van Loi Company), located in Bao Cuu village, Thanh Chau ward, Phu Ly city, Ha Nam province, represented by Mr. Phan Doan Tien, Director. This company was fined 786 million VND for refusing to fulfill a contract to supply 1,200 tons of rice.

In addition, the two joint venture companies are Khai Minh International Trading Company Limited (Khai Minh Company), address HH4 - Nam An Khanh Urban Area, An Khanh Commune, Hoai Duc, Hanoi. This company is a joint venture with Vietnam Construction and Project Development Company Limited. The joint venture contractor was fined more than 598 million VND. The reason for the joint venture contractor's refusal to perform the contract to supply 800 tons of national reserve rice in 2023.

It is known that three contractors Dong Phuong Company, Van Loi Company, and Khai Minh Company were also punished by the State Reserve Department of Thai Binh region.

Many businesses have "reneged" on rice contracts

2023 is not the first time the State Reserve Department in Hanoi has punished businesses that "reneged" on rice contracts.

Previously, the Hanoi Regional Reserve Department named 5 businesses that "ran away" and did not supply rice to the national reserve.

According to information from Lao Dong Newspaper, the State Reserve Department in Hanoi reported that contractors violated legal regulations on bidding for the supply of rice to the national reserve in 2020.

Ha Nam Ninh Food Joint Stock Company, located at 1A Street, Thanh Chau Ward, Phu Ly City, Ha Nam Province, was fined 419 million VND.

Ha Tinh Food Joint Stock Company, located at 18 Dang Dung Street, Nam Ha Ward, Ha Tinh City, Ha Tinh Province, was fined 125 million VND.

Chuong Tho Trading Company Limited, located in Kim village, Vu Lac commune, Thai Binh city, Thai Binh province, was fined 223 million VND.

Minh Khai Trading Joint Stock Company, address 23 Minh Khai, Hoang Van Thu ward, Hong Bang district, Hai Phong city was fined 344 million VND.

Thuy Long Ha Nam Limited Liability Company, Dong Lu Ha village, Chan Ly commune, Ly Nhan district, Ha Nam province was fined 280 million VND.

These contractors were fined for winning the bid to supply national reserve rice in 2020 but refusing to complete and sign the contract.

According to the provisions of Point d Clause 8 Article 11 of the Law on Bidding, the State Reserve Department of Hanoi collected the bid security money from the violating bidders and paid the entire collected amount to the state budget. The total amount is more than 1.3 billion VND.

As Lao Dong has analyzed, the fact that businesses "fail" to bid for national reserve rice raises questions about sanctions.

Many businesses "reneged" on bidding for national reserve rice, but these businesses were only fined and no businesses were banned from bidding.

In 2020, in addition to fines, the Ministry of Finance proposed a ban on participation in bidding activities to supply national reserve goods for acts of not performing or partially performing contracts to supply national reserve goods.

However, speaking with Lao Dong, a representative of the Department of Reserve Management (Ministry of Finance) said that contractors with "bad bidding" records are not currently banned from bidding but only have their reputation points deducted.

Thus, with the current sanction of fines without a bidding ban, it is difficult to end the situation of enterprises supplying rice for national reserves "defaulting on bids", affecting the goal of national food reserves. Because this phenomenon has happened and is happening in many places, at many different times.

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