“The Race for Investment: District People’s Committee vs. Project Management Board”

The audit revealed that for projects utilizing the city's budget, the People's Committee of Hoa Vang District in Da Nang City acted as the direct investor instead of delegating the responsibility to a project management unit.

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The Inspectorate of the Department of Planning and Investment (DPI) in Da Nang City has announced the results of its inspection into compliance with public investment laws at the People’s Committee of Hoa Vang District.

The inspection revealed that projects utilizing the city’s budget allocated to the People’s Committee of Hoa Vang District were not assigned to the District Project Management Board as the investor. Instead, the People’s Committee of Hoa Vang District directly acted as the investor.

The inspection concluded that the dual role played by the People’s Committee of Hoa Vang District, both as a state management agency and as the investor in public investment projects utilizing the city-allocated budget, was inconsistent with the provisions of the Law on Construction and did not ensure objectivity.

Additionally, the People’s Committee of Hoa Vang District assigned the People’s Committees of Hoa Chau and Hoa Son communes as investors to manage projects without considering the specific conditions, experience, and management capacity commensurate with the scale, nature, and source of public investment capital used.

The DPI Inspectorate attributed the shortcomings to the responsibility of the People’s Committee of Hoa Vang District and the Finance and Planning Office.

Hoa Vang District, Da Nang, exhibited several shortcomings and violations regarding compliance with public investment laws.

The inspection also identified two projects in the district that had not received approval from authorized agencies but were allocated annual capital plans. These projects include the software for the Hoa Vang District Party Committee’s leadership and direction information system, with a capital plan of VND 550 million allocated for 2022, and the project to equip the district’s administrative center with a security camera system, with a capital plan of VND 100 million allocated for 2023. Both projects were allocated capital based on decisions made by the People’s Committee of Hoa Vang District.

The inspection deemed this practice as not in compliance with the Law on Public Investment, holding the People’s Committee of Hoa Vang District, the Finance and Planning Office, and the District Project Management Board accountable for this shortcoming.

Furthermore, the inspection revealed that the People’s Committee of Hoa Vang District proposed to the District People’s Council for approval, adjustment, and supplementation of the mid-term public investment plan, exceeding the total project capital approved in the investment policy decision for three projects. These include the Lam Quang Thu Primary School project, which exceeded the approved total project capital by VND 147 million, the project to build concrete canals in Phong Nam Ward, which exceeded by over VND 20 million, and the project to upgrade the road to the revolutionary base of the District Party Committee, which exceeded by VND 28 million.

Additionally, the DPI Inspectorate concluded that the disbursement of public investment capital in Hoa Vang District fell short of the targets set by the Da Nang City People’s Committee. Some projects experienced delays in disbursement due to land clearance issues and were implemented towards the end of the year, resulting in the extension of the disbursement period to the following year. The People’s Committee of Hoa Vang District and related departments were held responsible for this issue.

The inspection recommended that the People’s Committee of Hoa Vang District organize a review meeting to address and learn from these shortcomings.

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