Ho Chi Minh City rectifies the advance payment of public investment capital from the State budget

Contractors with overdue advance payment balances but not cooperating in recovery will be transferred, have their investment capital cut, and will not be allowed to participate in bidding nationwide.

Chairman of Ho Chi Minh City People's Committee Phan Van Mai has just signed Document No. 479 1 /UBND-DA on rectifying and strengthening the management of advance payment of public investment capital from the State budget, following the direction of the Prime Minister in Directive No. 20 / CT-TTg dated July 12, 2024.

Accordingly, the leaders of the Ho Chi Minh City People's Committee requested the Departments, People's Committees of districts and Thu Duc City to conduct periodic and unscheduled inspections to rectify and handle arising problems, promptly detect and take appropriate measures and sanctions against the use of advance capital not in accordance with regulations by the Investor, contractor, and supplier.

In particular, for projects that have been temporarily suspended, investors must be required to clearly determine whether the project can continue or be permanently suspended; determine the responsibility of related organizations and individuals for the situation where the project has been suspended for many years but the advanced capital has not been fully recovered; recover all advanced capital and close the account at the State Treasury.

For ongoing projects, in case the volume has been completed and is eligible for payment, promptly accept the completed volume and complete payment procedures with the City State Treasury; in case the conditions for payment are not met, request the recovery of all overdue advanced capital.

Ho Chi Minh City will strengthen management of advance payment of public investment capital from the State budget.

The Ho Chi Minh City People's Committee also requested that Investors and Project Management Boards strictly implement regulations on capital advances; review regulations related to capital advances in signed and ongoing contracts; for projects in progress, with remaining unrecovered advances, promptly implement and accept completed volumes to recover advanced capital, ensuring full recovery when the disbursement value reaches 80% of the contract value (except in cases where a competent person allows a higher level of advance); for overdue advances, it is necessary to review and specifically assess the cause of each overdue advance; determine the responsibility of the collective and individual who must repay; propose a thorough and drastic handling plan, ensuring the recovery of all overdue advances (including measures such as initiating a lawsuit in court, transferring to the Inspection Agency, and the Police).

The State Bank of Vietnam - City Branch inspects and supervises the compliance with regulations on bank guarantees of credit institutions and foreign bank branches and handles violations arising under its authority.

The City State Treasury is responsible for urging the Investor to properly implement regulations on recovering advanced capital; coordinate with the Investor to inspect the advanced capital to recover unused or improperly used amounts; inspect the advanced balance to ensure the recovery of all advanced capital according to regulations.

For contractors with overdue advance payment balances but not cooperating to collect, the departments and branches shall advise and report to the Ho Chi Minh City People's Committee to consider sanctions such as transferring, cutting investment capital, publishing in newspapers that they are not allowed to participate in projects using State budget capital, and reporting to the Ministry of Planning and Investment not allowing them to participate in bidding nationwide.

Source: https://baodautu.vn/tphcm-chan-chinh-viec-tam-ung-von-dau-tu-cong-nguon-ngan-sach-nha-nuoc-d223078.html