Violations rampant in state-funded projects Numerous state-funded project developers have been found to have violated regulations on state capital management. Cau Gie-Ninh Binh highway The 54km Cau Gie-Ninh Binh highway was one of many such projects listed by the State Audit of Vietnam (SAV) in its announcement at last week’s National Assembly Standing Committee meeting. The project increased its budget 2.4 times against the $177.8 million set out in the initial plan. It is invested in by the Vietnam Expressway Corporation, with $47.6 million and the remainder through a government bond issuance and other state sources. While this project is under-construction, it has seen very slow progress over the last four years. SAV head Nguyen Huu Van said state coffers were feeling the pinch because of serious violations by numerous state projects. “Hundreds of projects have significantly increased their budgets compared to initial estimates, and in most cases the reasons are not made public,” he said. Other cases include the project investment to upgrade national roads (phase 1) was tripled from $109.2 million to $331.47 million, as well as the Ho Chi Minh highway’s Pac Bo-Cao Bang and Chon Thanh-Duc Hoa sections with an increase of $14.43 million. For national road 3’s Bo Dau-Ta Lung border gate section, capital more than doubled from $25.9 million to $61.9 million. The project to connect Vung Ang seaport to the Laos border saw an increase of $3 million. According to the SAV, in 2012, the Vietnamese government was tightening public investment. However, for thousands of recently finished projects it is unclear where they sourced their capital, they are mostly in the provinces of Quang Ngai, Phu Tho, Kien Giang, Thanh Hoa, Thai Binh, Gia Lai, and Haiphong city. Van also stressed that many localities announced new projects at a time when capital is very limited. Quang Nam has 501 projects, An Giang 325, Ninh Thuan 268, Phu Tho 298, Khanh Hoa 457, Hanoi 587 and Ho Chi Minh City 1,069. “Notably, more than 4,000 projects have been delayed and are behind schedule,” Van said. The National Assembly Economic Committee’s Chairman Nguyen Van Giau suggested investors in projects that have revised up their budgets must make public the reason behind this action. “Those found to have violated regulations must be severely punished to ensure budgetary principles,” Giau said. The SAV will conduct 161 audits this year in 35 provinces and cities, 15 ministries, 31 state-funded investment projects and 44 state-owned enterprises, financial organisations and banks. In 2013, some 149 audits were conducted. Enterprises on the audit list include the Ministry of Transport’s Cuu Long Transportation Infrastructure Project Management and Development Investment Corporation, PetroVietnam, Electricity of Vietnam and Vinacomin. By Khoi Nguyen, VIR