Billion-dollar hospital project in Nghe An owes hundreds of workers wages
(Baonghean.vn) - The project with a total investment of 1,300 billion VND, has been given many favorable conditions but is still in disarray. While the construction progress is slow, the hospital has recruited hundreds of workers only to have to liquidate and owe salaries.
"Turtle progress"
Area B - Nghe An General Hospital is a key project to attract investment in Nghe An province. This project has a total investment of 1,300 billion VND, started in 2013. The project is invested in the form of PPP, in which the State capital accounts for 40%. This capital is represented by Area A - Nghe An General Hospital, contributing capital by compensation costs for site clearance, geographical location advantages, hospital brand... This project is expected to be a leading high-quality medical examination and treatment place not only in Nghe An but also in the North Central region.
 |
| Project Area B - Nghe An General Friendship Hospital. Photo: Tien Hung |
In 2015, Nghe An General Hospital Friendship Joint Stock Company was established, with a charter capital of 260 billion VND. This company is currently chaired by Mr. Nguyen Van Huong - Director of Nghe An General Hospital Friendship as Vice Chairman of the Board of Directors.
In the company's shares, Nghe An General Hospital is determined to contribute 104 billion VND (equivalent to 40% of charter capital), Coctec HealthCare Company contributes 132.6 billion VND, Cotec Group contributes 23.4 billion VND. For the entire remaining capital (more than 1,000 billion VND), Nghe An General Hospital Joint Stock Company must borrow from the bank.
Billion-dollar hospital project in Nghe An behind schedule
(Baonghean.vn) - After 6 years of starting, to date, Area B - Nghe An General Friendship Hospital has not been completed. Provincial leaders and agencies have expressed doubts that the committed deadline given by the investor will not be fulfilled.
This project has a scale of 600 hospital beds, with a total floor area of nearly 55,000m2.2, located right next to Nghe An General Hospital. According to the first approved project, the implementation progress is "by the first quarter of 2018, the architecture will be completed and equipment installed. In the second quarter of 2018, the project will be officially put into operation".
By May 2018, the project had to extend its schedule with the goal of “completing the architecture, installing equipment and officially operating in the first quarter of 2019 by the fourth quarter of 2018”. However, up to now, this project is still in disarray.
Explaining this, Mr. Dam Quang Truc - General Director of Nghe An General Hospital Joint Stock Company said that due to common difficulties in completing the project's legal documents, the project was stopped by the bank from disbursing capital up to 4 times, leading to the construction progress being behind schedule. "The project is behind schedule compared to the approved plan, the prolonged construction time has led to increased costs of bank loan interest and business management costs. This increases the total investment of the project, affects efficiency, harms the interests of the State and people, the profits of the company as well as shareholders", Mr. Truc admitted.
After 3 years of sluggish construction, in mid-August 2019, the company suddenly stopped the project. On September 6, the project was restarted. This time, the investor committed to inaugurating the hospital on February 26, 2020. However, representatives of many departments and branches expressed doubts about the feasibility of this deadline.
“We are very worried about the investor. Now, the inauguration date is less than 6 months away. If we look at the current workload, it will be very difficult to complete. Not to mention that according to the plan, there should be 180 workers working at the construction site, throughout the time from now until then to complete. But currently, there are only about 1/3 of the workers at the construction site, not to mention that from now until then, there will be both Lunar New Year and New Year holidays...”, said Mr. Chu Anh Tuan - Deputy Director of the Department of Construction.
Sharing this view, heNguyen Huu Mao - Deputy Director of the Department of Planning and Investment, said that Nghe An province had high expectations for this project. "When the project was attracted, the expectations were as high as the disappointment. With the latest deadline given by the investor, it cannot be achieved," said Mr. Mao.
 |
| Mr. Nguyen Van Huong is Vice Chairman of the Board of Directors of Nghe An General Hospital Friendship Joint Stock Company. Photo: Tien Hung |
Regarding the reasons for stopping the project and the slow construction progress, Mr. Nguyen Van Huong - Vice Chairman of the Board of Directors of Nghe An General Hospital Joint Stock Company said that because the project had to adjust the planning, the bank did not lend capital. Mr. Huong also said that if the people of Nghi Phu commune had not submitted dozens of lawsuits, leading to the reopening of Ho Tong Thoc Street, the progress would not have been as slow as it is now and the project would not have been stopped...
Regarding the deadline of February 26, 2020 for inauguration, although it is too urgent, Mr. Huong said that to do this project, the company had to borrow up to 1,033 billion VND from the bank. Currently, each month it costs nearly 10 billion VND in interest. "Every month it is delayed, the company will lose more months, and we cannot survive. We are committed to completing it by that date," Mr. Huong said.
Wage arrears to workers
Despite the slow progress of construction, from September 2017 to October 2018, the company recruited hundreds of workers. Among them were 44 doctors, 170 nurses, technicians, and midwives. However, from the end of 2018 until now, the company has not fully fulfilled its commitment on salary payment and insurance costs for employees. At one point, the company owed up to 8 months of salary. To date, it still owes employees 3 months of salary.
“We also asked for it, but they always said that the company was having difficulties and asked for a delay,” said LT A, who was once employed by this company. After months of waiting for the hospital to be completed, he had to find a new job at another hospital.
Due to unpaid wages, the doctors recruited by this hospital later submitted their resignations. As for the nurses, technicians, and midwives, the company liquidated all of them.
 |
| Currently, very few workers still have contracts with this project. Photo: Tien Hung |
Explaining this, the company said that "the company is facing many financial difficulties and is in the process of restructuring its apparatus".
Not to mention, when these doctors signed contracts with the company, their original diplomas were kept. Although the project was delayed and they could not arrange work as promised, the company refused to terminate the contract and return the original diplomas so that the workers could apply for jobs at other hospitals. Recently, when the press reported, the company invited the workers to terminate the contract and return the original diplomas, even though they still owed them many months of salary.
At a recent working session, leaders of Nghe An province and representatives of the Department of Planning and Investment requested the investor to work with the Department of Finance to clearly report on the investments, as this project has up to 40% state capital. "Even if it is a bank loan, that money is still state capital, so it must be clarified whether the capital has been implemented? When was it implemented? What investment...?", Deputy Director of the Department of Planning and Investment Nguyen Huu Mao requested.