Mr. Ton Thien Son, Head of the Expenditure Control Department of the Nghe An Provincial State Treasury, stated: "Over the years, the Nghe An Provincial State Treasury has implemented numerous solutions to help recover advances and funds disbursed in excess of the approved final settlement value, such as: proactively reviewing advance data for each project; urging investors to comply with regulations on recovering advances and funds disbursed in excess of the approved final settlement value; and coordinating information exchange with the Department of Finance to advise and report to the Provincial People's Committee on handling measures... The synchronized implementation of the above solutions has effectively utilized capital, accelerated project completion, and contributed to achieving socio -economic development goals in the locality."
From the beginning of the year to June 30, 2023, 2,162 billion VND in advances have been recovered; and 2.3 billion VND of previously paid capital has been recovered in excess of the approved settlement value. However, the recovery of advances and previously paid capital still faces many difficulties. The remaining amount of previously paid capital exceeding the approved settlement value is 32.7 billion VND. The outstanding advance balance is 5,761 billion VND. Of this, 69.441 billion VND is overdue advance capital, accumulated over many years.
The reasons include: some investors have not implemented decisive measures to recover advance payments, especially overdue advances; they have not taken steps to recover funds paid in excess of the approved and finalized values; the State has not yet implemented sufficiently strong sanctions to deal with investors and contractors who do not comply with regulations on investment capital management; some project management boards and investors have been dissolved, contractors have gone bankrupt, projects have been suspended or not implemented…
Mr. Nguyen Dinh Hoa, Director of the State Treasury of Nghe An province, stated: "To effectively handle the recovery of advances and funds paid in excess of the approved final settlement value, the Nghe An State Treasury proposes several solutions: For investors, decisive measures are needed to recover funds paid in excess of the approved final settlement value, as well as advances as stipulated, and to be held responsible for unrecovered advances; a list should be compiled and considered when bidding against contractors who fail to repay funds paid in excess of the approved final settlement value. For superior agencies of investors, the criteria for recovering advances and funds paid in excess of the approved final settlement value should be used as a criterion for annual performance evaluation and assessment."
"In addition, the Provincial People's Committee needs to impose sanctions on investors who have outstanding advance payments that have been outstanding for many years and have not recovered the capital paid in excess of the approved final settlement value," Mr. Nguyen Dinh Hoa shared.
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