Quang Ngai Irrigation Construction Company violated bidding

Many errors and limitations

On June 4, Mr. Tran Van Thua, Deputy Chief Inspector of Quang Ngai province, announced the conclusion of the inspection of the implementation of policies, laws and tasks of Quang Ngai Irrigation Works Exploitation One Member Co., Ltd. in business, service and management of construction investment and projects from 2019 to 2021.

Regarding the implementation of investment and construction procedures, through the inspection of the N8-2 Canal Repair and Upgrade Project, it was shown that the Project was approved by the Provincial People's Committee in Decision No. 697/QD-UBND dated September 9, 2019 on the use of the provincial budget reserve in 2019 to allocate funds to implement drought and saltwater intrusion prevention to serve people's lives and agricultural production in 2019, assigning the Company to organize the implementation with a total budget of 2 billion VND.

The project has been approved for settlement and handed over for use.

The company identified this as a source of capital to support the implementation of measures to prevent drought and saltwater intrusion to serve people's lives and agricultural production due to the urgency of repairs and upgrades that need to be done immediately to overcome the consequences and carry out drought prevention work, provide water for agricultural production according to the agricultural season schedule, and serve drought prevention work with the goal of completion in 2019.

However, in the project documents there is no urgent decision document from the competent authority, but the Company established the project to decide on investment in an urgent form, which is not in accordance with regulations.

During the bidding process for the N8-2 Canal Repair and Upgrade Project, the company divided the project into 4 construction packages for designated bidding according to Article 54 of Decree 63/2014/NDCP dated June 26, 2014 of the Government , detailing the implementation of a number of articles of the Bidding Law on contractor selection, which did not comply with the regulations.

“Dividing a bid package into smaller packages is a prohibited act as stipulated in Point k, Clause 6, Article 89 of the 2013 Law on Bidding. This violation must be handled with the responsibility of the investor,” the Inspection Conclusion clearly stated.

In addition, the inspection of the implementation of the work of preparing, examining, appraising, designing construction drawings and estimates, acceptance, payment and settlement of 9/18 projects showed that the investor, supervision consultant and construction contractor increased the value of the project by more than 434 million VND.

The budget allocated by the Provincial People's Committee to serve drought prevention and natural disaster relief in 2005, 2013, 2015, 2017, 2018 and 2019 still has 485 million VND remaining after the spending task has expired, but the company did not promptly carry out the budget refund procedure but accounted for it in other payable and payable accounts, which is not in compliance with the provisions of Clause 2, Article 34 of the State Budget Law.

The company's determination that the amount of financial support for excess electricity bills at electric pumping stations increased by VND 512 compared to the actual excess electricity bills at electric pumping stations in 2 years (2018 and 2019) is not in accordance with the provisions of Clause 3, Article 7 of Circular No. 73/2018/TT-BTC dated August 15, 2018 guiding the use of financial resources in the management and exploitation of irrigation works using state capital.

In 2021, the company transferred VND 109 million from the Reward Fund to the Welfare Fund for use, which was not for the purpose of the fund allocation...

In addition, Quang Ngai Irrigation Works Exploitation One Member Co., Ltd. also committed a number of other violations in implementing the water supply contract for Quang Ngai Tapioca Starch Factory, Quang Ngai Agricultural Products and Foodstuff Joint Stock Company branch and related units; regarding financial support from the state budget; complying with value-added tax obligations, asset and debt management, etc.

Clarify the responsibilities of organizations and individuals involved in violations

The Provincial Inspectorate has issued 12 decisions to recover the amount of VND 1,482,882,000; to date, the company has paid VND 1,457,122,000 into the Provincial Inspectorate's temporary account at the Quang Ngai State Treasury, with VND 25,760,000 remaining.

The Inspector recommends that the Company Director pay the remaining amount according to the State budget recovery decisions of the Provincial Inspector.

Apply remedial measures to implement the water supply contract for Quang Ngai Tapioca Starch Factory according to the provisions of law.

Make adjustments to the accounting of assets, liabilities, expenses, revenues, and fulfill budget payment obligations according to regulations and errors stated in the Inspection Conclusion.

Quang Ngai Provincial Inspectorate also requested the Company Chairman to preside over the organization of a review to clarify the responsibilities of organizations and individuals over the periods related to the violations mentioned in the Inspection Conclusion in order to take measures to handle them according to authority.

At the same time, organize a review of the company's leadership regarding responsibility for the errors, synthesize the results and report to the Provincial People's Committee for consideration and handling according to authority.

“Presiding over the organization of reviews and clarifying the responsibilities of organizations and individuals through the periods related to violations in the bidding work of the construction package of the N8-2 Canal Repair and Upgrade Project for handling according to the provisions of law,” the inspection conclusion stated.

In addition, the Inspectorate requested the Director of the Provincial Department of Finance to organize a review meeting to draw experience for individuals involved in errors in the industry and field assigned to perform the state management function for the company in service business activities; price support for public irrigation service products; financial support from the State budget.

The unit presides over and coordinates with the Department of Agriculture and Rural Development and Quang Ngai Irrigation Works Exploitation One Member Co., Ltd. to review and advise the Provincial People's Committee to send a document to the Central Government to consider supporting the cost of using irrigation public products and services that have not been fully provided over the years for the company according to regulations.

This Department strengthens the management, inspection and supervision of financial support funds and other funding sources... supported by the Provincial People's Committee for Quang Ngai Irrigation Works Exploitation One Member Co., Ltd.

Source: https://www.nguoiduatin.vn/cong-ty-khai-thac-cong-trinh-thuy-loi-quang-ngai-sai-pham-dau-thau-a608748.html