Late submission of final settlement reports: No new project contracts awarded.

(Baonghean.vn) -Currently, there are still about 1,000 projects in Nghe An province that have not been finalized, affecting the management of state investment capital and causing prolonged outstanding debts in basic construction...

As a large province with many administrative units and receiving significant funding from central government programs and projects, Nghe An province has a very large number of projects and construction works. According to a report from the State Treasury, as of April 30, 2014 – before the implementation of Directive 27 – the total number of projects yet to be finalized was 3,380. Following Directive 27 dated December 27, 2013, of the Prime Minister on strengthening the finalization of investment capital for completed projects in the province, by the end of April 2015, the province had approved the finalization of 2,199 projects, leaving 1,039 completed projects yet to be finalized.

The headquarters of the People's Committee of Nghia Binh commune, Nghia Dan district – the project has completed the final settlement documents.

Currently, the final settlement of completed projects is receiving attention and guidance from all levels and sectors; in the first six months of 2015, the Department of Finance settled 180 projects, reaching 109.1% compared to the same period in 2014, with a total proposed settlement cost of VND 1,297.9 billion. In the first six months of 2015, several large projects were reviewed and approved, such as: the drainage system for agricultural areas in Dien Chau district; the construction of the Lach Van storm shelter and anchorage area in Dien Chau district; and the bidding packages under the Rural Road Project 3 in Nghe An province. As a result, a significant investment cost of VND 1,278 billion was settled, reaching 211.2% compared to the same period in 2014, with savings of VND 19.5 billion (1.58%) after review.

The Department of Finance is currently urging departments, agencies, districts, cities, towns, and investors to further accelerate the final settlement of completed projects in accordance with Directive No. 27/CT-TTg dated December 27, 2013, of the Prime Minister and Decision No. 1738/QĐ-UBND dated April 25, 2014, of the Provincial People's Committee. To date, three districts have completed the process of preparing documents for submission to the verification agency for approval of final settlement: Ky Son, Quynh Luu, and Quy Chau.

Mr. Hoai, Head of the Finance Department of the Quy Chau District People's Committee, said: Before Directive 27, there were 155 projects, including some that had been pending since 1995 and 1996. Following Directive 27 and the guidance of the Provincial People's Committee and the Department of Finance, the Quy Chau District People's Committee directed the Finance and Planning Department, the project owners, and the relevant departments to take decisive action. As a result, 63 projects were resolved in the first phase, and 92 projects in the second phase. To date, projects completed before 2013 have been finalized. Projects completed in 2014 under the district's jurisdiction have also been largely finalized. "We request the Provincial People's Committee to allocate funds to repay debts for projects that have been finalized. Regarding the mechanism for allocating funds in the coming period, we need to focus on projects that have been unfinished for many years to ensure timely finalization," Mr. Hoai suggested.

Construction of Quynh Bang Market - Quynh Luu

In Quynh Luu district, according to the list announced by the Provincial People's Committee and a review and statistical analysis conducted in the district, the total number of outstanding construction projects is 192. Mr. Nguyen Van Quy, Vice Chairman of the Quynh Luu District People's Committee, stated that there are currently 32 unfinished construction projects, 6 projects under the authority of the Provincial People's Committee for final settlement approval (the investors have submitted all necessary final settlement documents to the Department of Finance), and 154 projects that have been audited and approved for final settlement, reaching a 100% rate. The total value proposed for final settlement is over 259 billion VND, the total value approved for final settlement is over 249 billion VND, and the value cut is nearly 10 billion VND (accounting for 3.84%).

Of the 607 projects that have not yet submitted final settlement documents to the competent authorities, 510 projects were completed in 2012 or earlier, violating the deadline for submitting final settlement reports by more than 24 months. For example, the People's Committee of Que Phong district has 39 projects, the People's Committee of Nam Dan district has 13 projects, and the People's Committee of Tuong Duong district has 13 projects. At the commune level, the People's Committee of Hoa Hieu ward (Thai Hoa town) has 9 projects, and the People's Committee of Hung Loc commune (Vinh city) has 8 projects… Mr. Nguyen Xuan Hai – Director of the Department of Finance said: The current difficulty is that the work of identifying and compiling the names and addresses of contractors with projects violating the final settlement deadline in the districts and departments is not yet complete, affecting the proposal of appropriate sanctions according to regulations. Out of a total of 510 completed projects from 2012 onwards that have not yet been finalized, the units have only reported the names of the contractors for 311 projects (by 294 contractors); for 199 projects, the units have not yet reported the names of the contractors.

In fact, a review of the list of unfinished projects between districts, sectors, and the State Treasury has revealed several shortcomings. Many projects have been audited and approved for final settlement, but the district-level audit agencies have not sent the final settlement approval decisions to the State Treasury. State Treasury leaders stated that this inadequacy prevents the State Treasury from having a basis to finalize investment capital disbursement accounts and include them in the list of unfinished projects. Meanwhile, 142 projects are still under construction and have not been completed and handed over for use, yet they are still included in the list of completed projects that have not been finalized, and some projects are listed twice. This is because these projects are behind schedule according to the signed contracts, and there is no document extending the construction time. Therefore, the State Treasury bases its inclusion of completed projects that have not been finalized on the completion time stated in the contract.

Shortcomings in the project settlement process affect the management of state investment capital, causing prolonged outstanding debts in basic construction and preventing the final settlement of project accounts. Therefore, to expedite the preparation of project settlement reports and the verification and approval of completed project settlements in accordance with Prime Minister's Directive 27 and Provincial People's Committee Decision 1738/QD-UBND, districts and cities need to innovate the verification of completed project settlements. For investors and contractors with projects that violate regulations by delaying the submission of settlement reports for more than 24 months, the Department of Planning and Investment is requested not to advise on investment policies, not to appraise new investment projects; and not to approve bidding plans or award contracts for new projects.

Thu Huyen