On June 1st, Mr. Nguyen Tri Kien, Inspector of Quang Tri Province, announced that the Provincial Inspectorate had issued Inspection Conclusion No. 476 regarding compliance with bidding and construction laws for two projects: the Ba Tang Commune Office headquarters construction (in Huong Hoa District) and Package 16 of the project to build roads connecting tourist destinations in Huong Hoa District.
Package 16 involved the construction of Lines 1, 3, 4, and 5 of the aforementioned road project, with a package value of VND 9.69 billion. The joint venture of Duc Nhan Co., Ltd. and Loc Phu Co., Ltd. won the bid with a price of VND 9.68 billion.
The investor for this project was the Project Management Board for Investment Construction and Land Fund Development of Huong Hoa District (now shortened to the Project Management Board of Huong Hoa District).
The total investment for the Ba Tang Commune Office headquarters construction project was VND 11 billion, and Loc Phu Co., Ltd. won the bid with a price of VND 8.79 billion. The project was handed over and put into use on June 28, 2024.
Ba Tang Commune Office headquarters, where the son-in-law awarded the contract to his father-in-law’s company
Regarding Package 16, the Provincial Inspectorate concluded that the Director of the Project Management Board of Huong Hoa District (during 2022) lacked inspection and responsibility in assigning Mr. Nguyen Khanh Quan as the leader of the expert group for bid evaluation and contract awarding to his father-in-law’s company.
Mr. Nguyen Khanh Quan, former Deputy Director of the Project Management Board and leader of the expert group for bid evaluation and contract awarding, awarded the contract to a joint venture of two contractors. One of the contractors, Loc Phu Co., Ltd. (represented by Mr. Tran Hau, the company’s director), was the father-in-law of Mr. Quan. This action violated Article 89 of the 2013 Bidding Law.
In the case of the Ba Tang Commune Office headquarters construction project, during the bidding and contractor selection process, Loc Phu Co., Ltd. provided a private contract as a similar contract. The expert group overlooked the requirement for the bidder to supplement confirmation from the state agency.
Notably, the contract provided by the contractor was fake, violating Article 89 of the 2013 Bidding Law. The expert group was negligent in not verifying, checking, and comparing documents, leading to their failure to detect irregularities in the contractor’s declaration, and ultimately awarding the contract to this bidder. There were also some shortcomings and shortcomings in the implementation of this package.
Based on the above violations, the Provincial Inspectorate recommended that the People’s Committee of Quang Tri Province direct the People’s Committee of Huong Hoa District to rectify the bidding process, ensuring the principles of competition, equality, transparency, economic efficiency, and accountability.
The Inspectorate also recommended directing the Department of Finance to strengthen the inspection and monitoring of bidding activities, especially for packages with many complaints, negative reflections, low participation, low savings rates, or single contractors winning multiple packages.
The Department of Finance should also advise the People’s Committee of Quang Tri Province to impose administrative sanctions and prohibit Loc Phu Co., Ltd. from participating in bidding activities due to violations of bidding laws.
Regarding Huong Hoa District People’s Committee, the Provincial Inspectorate of Quang Tri recommended reviewing the responsibilities, handling strict organizations and individuals, and overcoming the shortcomings and shortcomings; clearly defining the responsibilities and strictly handling Mr. Nguyen Khanh Quan.
In terms of economics, it is required to direct relevant agencies and units of Huong Hoa District People’s Committee to recover a total amount of VND 69.6 million. Specifically, the Department of Economy, Infrastructure and Urban Affairs of Huong Hoa District paid VND 14 million for the surplus design fee, and the Project Management Board paid VND 55.6 million for the surplus acceptance and payment of some items of the Ba Tang Commune Office headquarters construction project.
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