"Running away" many national reserve rice contracts
On November 2, 2023, the Director of the State Reserve Department of the Cuu Long region signed a decision to terminate contract No. 20/2023/HDMB signed on July 15, 2023 between the State Reserve Department of the Cuu Long region and Kim Hang Company Limited on the implementation of package No. 03: Supply of 1,000 tons of rice to the national reserve warehouse in 2023 at the Sa Dec warehouse - Vinh Long State Reserve Sub-Department.
The value of this contract is 12,550,000,000 VND. The maximum contract performance period is 30 days from the effective date of the contract. The reason for termination is that Kim Hang Company (address: Group 6, Thach Phu Hamlet, Tan Binh Commune, Chau Thanh District, Dong Thap Province) does not perform the contract.
The State Reserve Department of Cuu Long region decided to recover 627,750,000 VND from Kim Hang Company. This is the contract performance guarantee, the transfer order dated August 30, 2023 was confirmed by the Vinh Long State Treasury.
In addition to being fined by the Cuu Long State Reserve Department, Kim Hang Company was also fined by the Southeast State Reserve Department for defaulting on bidding for national reserve rice.
Accordingly, on November 22, Deputy Director of the State Reserve Department of the Southeast region Hoang Van Viet announced that Kim Hang company violated the law on bidding.
The State Reserve Department of the Southeast region has terminated the contract and fined Kim Hang company VND 774,450,000.
The reason the contractor did not deliver the goods within the time limit specified in the contract signed between the two parties in packages 05 and 07.
Won more than 157 billion VND from bid packages of State Reserve Departments
Kim Hang Company won 14 bids with a total winning bid price of 157,164,090,000 VND. All 14 bids were from State reserve departments.
Notably, in 2023, in addition to the State Reserve Department of the Mekong Delta region and the Southeast region, Kim Hang Company also won package No. 07 from the State Reserve Department of Ho Chi Minh City region, supplying 1,200 tons of rice to the national reserve warehouse in 2023 at the State Reserve Department of Dong Nai; Package No. 01, supplying 1,000 tons of rice to the state reserve warehouse in 2023 at the State Reserve Department of Long An.
In 2022, this company also won package No. 06, quantity of 1,000 tons of rice, warehouse location at the Eastern State Reserve Sub-Department, Binh Duong province of the Southeast State Reserve Department.
In 2021, Kim Hang Company won bid package No. 04, supplying 600 tons of rice to the national reserve warehouse at the Can Tho State Reserve Sub-Department under the State Reserve Department of the Southwest region.
In 2020, Kim Hang Company won 4 bids from the State Reserve Department in Ho Chi Minh City. These are bid package 02, supplying 1,000 tons of rice to the national reserve at the Long An State Reserve Department; bid package 05 supplying 900 tons of rice, bid package 6 supplying 900 tons of rice; bid package 07 supplying 800 tons of rice to the Dong Nai State Reserve Department.
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