Overdue debt is making many contractors in Gia Lai suffer

Not enough capital but still organizing construction bidding

On July 27, the Department of Planning and Investment of Gia Lai province proposed that the Provincial People's Committee review the investors of basic construction projects in the area that have caused long-term arrears. As of mid-July 2024, in Gia Lai province, the Provincial Construction Investment Project Management Board and the People's Committee of Chu Se district have outstanding debts.

The debt of construction and development costs has caused businesses to suffer, sending complaints to competent authorities. In Chu Se district, Phuc Hung Company Limited (Group 8, Chu Se town) submitted a request to the Chu Se District Investment and Construction Project Management Board to pay its debt, with an amount of 722 million VND.

Truong Phat Loi Construction Company Limited (Pleiku City) sent a debt collection request for the Nguyen Thi Minh Khai road project; Lakeside road project of residential group 8.

From 2020 and 2021 to now, the contractor has completed the construction of the ground as well as made the final payment for these two projects, but the investor has only paid a part, the remaining debt is more than 4.7 billion VND.

Among the contractors, Thuan Nghia Gia Lai Company Limited has been owed money by Chu Se district for up to 8 years. Mr. Nguyen Nhieu - Director of Thuan Nghia Gia Lai Company Limited - was upset: "The district owes payment, while my company has to work hard to pay tax debts and late payment penalties, causing heavy economic losses."

Chu Se district is looking for capital to pay off debts for businesses. Photo: Thanh Tuan

Who is responsible for the arrears?

According to statistics from the Department of Planning and Investment of Gia Lai province, the Provincial Construction Investment Project Management Board has outstanding debt figures arising from January 1, 2015 to December 31, 2023 of 895 million VND.

The reason is that the capital mobilized from the people contributed 10%. Up to now, many localities have not collected it, including the districts: Chu Prong, Dak Po, Chu Puh, An Khe, Duc Co, Chu Se.

In Chu Se district, the outstanding debt from January 1, 2015 to December 31, 2023 is more than 19.7 billion VND. The reason is that the projects have not been allocated capital and the district has not collected land use fees.

The outstanding debt affects the confidence of small and medium enterprises, the investment environment, and investment attraction of Gia Lai province.

Ms. Rmah H' Bé Net - Chairman of the People's Committee of Chu Se district - said that in the period of 2015-2020, agricultural products in the area had bad harvests, falling prices, and pepper died. From 2020 to now, the epidemic has been complicated, life has been difficult, so the People's Committees of communes have had difficulty collecting donations and mobilizing money from households.

As for projects using entirely state capital, Ms. Rmah H' Bé Net said that the district will continue to coordinate with the District Construction Investment Project Management Board to find solutions. After that, the district will pay off the debts.

The outstanding debts mainly occurred in the period 2015-2020. Chu Se district is asking individuals and units to review and learn from their experiences in letting debts accumulate, and find capital sources to pay debts according to the capital allocation resolution of the district People's Council.

Pursuant to Directive No. 07/CT-TTg dated April 30, 2015 of the Prime Minister: "Do not allow enterprises to invest their own capital to prepare for investment and project construction without capital allocation, causing outstanding debts in basic construction", the Department of Planning and Investment of Gia Lai province believes that investors who allow violations to occur need to be reviewed.

Source: https://laodong.vn/kinh-doanh/no-dong-dang-lam-kho-nhieu-nha-thau-o-gia-lai-1372113.ldo