Directive No. 01/CT-NH3 On Strengthening the Struggle Against Corruption in the Banking Sector

DIRECTIVE

OF THE STATE BANK OF VIETNAM

On Strengthening the Struggle Against Corruption in the Banking Sector

1. After three years of implementing Directive No. 15/CT-TW of the Party Central Committee and Decision No. 114/TTg, Directive No. 368/TTg of the Prime Minister on thrift, anti-waste, anti-smuggling, the entire banking sector has achieved certain results, contributing significantly to the implementation of major tasks in the process of implementing the Banking Ordinances, gradually cleansing organizations at all levels and units within the banking sector.

However, the results achieved are still very limited and not fundamental. Corruption and negative practices continue to occur, in some cases seriously, causing public dissatisfaction and affecting the reputation of the sector.

The above shortcomings have many causes, among which there are several main causes as follows:

- In terms of awareness, many leaders have not deeply grasped the contents of the Party and Government's Resolutions and Directives on this work.

Indifference and formalism still exist in some banking units, leading to passivity in building and implementing action programs against corruption.

- Lack of specific measures to effectively implement this work; slow detection and handling of corruption cases; lenient handling of officials with violations in many units.

- Party organizations and mass organizations at all levels have not paid sufficient attention to directing; they remain outside the process.

- The activities of the Steering Committee in recent times have not been regular due to members being busy with specialized tasks; the organizational structure of the permanent office of the Anti-Corruption Steering Committee for the entire sector has not yet been fully strengthened.

2. To further intensify the struggle against corruption, smuggling, waste, and negative practices in the banking sector, the Governor of the State Bank requests the Heads of Departments and Bureaus at the Central Bank, subsidiaries under the State Bank, Governors of provincial branches of the State Bank, Chairmen of Management Councils and General Directors (Directors) of Credit Institutions, and Gold and Precious Metals Joint Stock Companies (hereinafter referred to as units) to urgently implement the following measures:

2.1. Strengthen political and ideological education for cadres in the unit.

- In the second quarter of 1997, the head of the unit will coordinate with the Party organization and mass organizations to organize study sessions for cadres and employees to thoroughly understand Resolution No. 14/NQ-TW dated May 15, 1996 of the Party Central Committee (Term VII), Directive No. 10/CT-TW dated January 4, 1997 of the Party Central Committee (Term VIII) on leading the struggle against corruption; Directive No. 368/TTg dated June 22, 1995 of the Prime Minister on thrift and anti-waste in state agencies, armed forces, mass organizations, and state enterprises.

- Based on that, each unit will develop a specific action program and measures to implement it.

2.2. Review existing documents of the sector and the unit, identify gaps in consistency or lack of synchronization that cause difficulties and obstacles to management and business operations, creating loopholes for the emergence of negative practices and corruption, and propose amendments and supplements or request higher authorities to amend and supplement them to be consistent with reality. Pay special attention to credit, guarantee issuance, compliance with foreign exchange management regulations, joint ventures, mergers, procurement, basic construction, financial income and expenditure of the unit and the sector. Implementation time is in 1997.

2.3. Continue to strengthen and reorganize the organizational structure, properly allocate cadres. Credit institutions need to urgently review and reallocate cadres, especially credit officers, improve loan procedures, rectify compliance with regulations; perfect operational procedures; each unit should establish specific procedures and working methods to prevent favoritism, harassment, bribery, kickbacks, gifts... Implementation time is in the second quarter of 1997, the Department of Organization and Training will guide the implementation of this work.

2.4. Strengthen daily inspection at all stages of business operations, regular auditing and supervision to promptly detect and prevent negative practices and corruption; conclude and handle decisively cases of corruption causing asset losses in areas such as credit, guarantees, joint ventures, foreign exchange management, financial income and expenditure... or unresolved cases from before; strictly punish officials with violations regardless of their rank, including disciplinary measures such as dismissal or referral for criminal prosecution.

New cases must be basically resolved by the second quarter of 1997; old unresolved cases must have specific plans to be basically resolved by the end of 1997.

2.5. Strictly prohibit the use of public funds to distribute to individuals in any form, or purchase gifts beyond regulations, including during Tet holidays; prohibit agencies and civil servants from accepting gifts from subordinates, domestic and foreign enterprises in violation of regulations.

2.6. Organize the declaration of housing, land, and large-value assets for cadres in the sector when government regulations are issued.

2.7. Fully practice thrift in areas such as procurement of assets and equipment, use of personal cars, electricity, telephone, fax, use of official residences, conference expenses, hospitality, overseas travel...

3. Implementation:

3.1. In the work program of unit leaders, the struggle against corruption must be considered a key and ongoing task. The head of the unit will coordinate with Party committees at all levels to direct the struggle against corruption and bear responsibility if corruption occurs in their unit.

3.2. Units must develop action programs and implementation plans for Resolution No. 14 and Directive No. 10 of the Party Central Committee; outline steps, set timelines, priorities, and assign responsibilities to members of the Steering Committee, and submit to the Anti-Corruption Steering Committee of the State Bank (through the State Bank Inspectorate by April 1997).

3.3. Continue to strengthen and enhance the activities of Steering Committees fighting corruption in the banking sector.

-The Anti-Corruption Steering Committee of the sector shall be headed by the Governor of the State Bank of Vietnam as Chairperson, the Inspector General of the State Bank of Vietnam and the Chief Auditor as Deputy Chairpersons, responsible for the day-to-day operations of the Steering Committee. Other members include the heads of units such as: Organization and Training; Financial Institutions; Accounting and Finance; Chief Auditor; Issuance and Treasury; Governor's Office; Management; Foreign Exchange Management; Credit; Party Committee Representative of the Central Bank, Trade Union of the Banking Sector; Commercial Joint Stock Bank; Industrial and Commercial Joint Stock Bank; Investment and Development Joint Stock Bank; Agricultural and Rural Development Joint Stock Bank; Poverty Alleviation Bank; Central People's Credit Cooperative Fund; Gold and Silver Corporation.

At each Department, Branch of the State Bank of Vietnam at provincial and municipal levels, Joint Stock Commercial Banks and their branches, Units of Joint Stock Commercial Banks, Companies, Enterprises, and Schools, an Anti-Corruption Steering Sub-Committee shall be established, headed by the head of the unit. Other members include: Inspectors (for State Bank of Vietnam Branches), Auditors (for Joint Stock Commercial Banks), representatives of the Party Committee, Trade Union, Youth, Women, Organization and Training, and People's Inspectorate (for other units).

3.4.Strengthen and consolidate the inspection and audit machinery in units, especially those lacking staff, to assist in anti-corruption leadership, monitoring, urging the implementation of policies and measures on anti-corruption work within the unit. The selection and placement of inspectors and auditors must meet the prescribed standards.

3.5.During the process of leadership and implementation, it must be closely linked with Party work and mass organizations to mobilize the masses to actively participate in the struggle against corruption, smuggling, criticizing and denouncing all negative behaviors; nurturing, promptly recognizing and publicizing good people and deeds; reviewing the cadre team, reasonably arranging and transferring cadres; strictly and resolutely dealing with and removing from the unit individuals with serious negative behaviors or serious violations.

3.6.Organize a campaign to educate about thrift, anti-waste, anti-corruption, and anti-smuggling in the banking sector. The Department of Information and Banking Business shall guide the implementation of education against corruption.

4.Strictly adhere to the information and reporting system according to the schedule to the State Bank of Vietnam; establish regular and strict meeting and briefing systems.

On the 20th of every month and the 20th of the last month of each quarter, units under the Central State Bank of Vietnam, State Bank of Vietnam branches at provincial and municipal levels, and Joint Stock Commercial Banks must submit brief reports on the situation and results of the struggle against corruption, waste, and smuggling (within the system, within their own units, or in specific provinces and cities) to the sector-wide Anti-Corruption Steering Committee (through the State Bank of Vietnam Inspectorate). In case of urgent or serious matters, they must report immediately in writing or directly.

On the 15th of every month, Joint Stock Commercial Banks or their branches must submit brief reports to the branch governor of the State Bank of Vietnam in their respective areas for consolidation, and then submit these reports to the State Bank of Vietnam (through the State Bank of Vietnam Inspectorate) in accordance with the time frame set by the sector-wide Anti-Corruption Steering Committee.

This Directive must be disseminated and thoroughly understood by all employees in the sector.

The State Bank of Vietnam Inspectorate shall cooperate with the Department of Organization and Training to assist the sector-wide Anti-Corruption Steering Committee in guiding, monitoring, urging, and inspecting the implementation of this Directive; monthly reporting to the Anti-Corruption Steering Committee of the State Bank of Vietnam on the results of implementation./.