Joint Circular No. 02/2008/TTLT-BNV-BTC guiding the implementation of Government Decree No. 118/2006/NĐ-CP dated October 10, 2006 on handling material responsibility for civil servants causing damage to state assets.

JOINT CIRCULAR

GUIDELINES FOR IMPLEMENTING THE GOVERNMENT DECREE NO. 118/2006/NĐ-CP ON THE HANDLING OF MATERIAL RESPONSIBILITY FOR PUBLIC OFFICIALS AND CIVIL SERVANTS

Implementing Government Decree No. 118/2006/NĐ-CP on handling material responsibility for public officials and civil servants (hereinafter referred to as Decree No. 118/2006/NĐ-CP), the Ministry of Home Affairs and the Ministry of Finance provide guidelines for implementing this Decree as follows:

I. GENERAL PROVISIONS

1. Persons working under labor contracts in state agencies, organizations, units, social organizations, occupational social organizations, political organizations, and political social organizations shall not be subject to material responsibility as prescribed in Decree No. 118/2006/NĐ-CP but shall be handled according to the Labor Code and related guiding documents.

2. In cases where the head of an agency, organization, or unit does not agree with the voluntary compensation request submitted by a public official or civil servant after causing damage, a disciplinary committee for material responsibility still needs to be established to handle the violation.

3. In cases of material damage caused by force majeure as stipulated in Clause 7, Article 3 of Decree No. 118/2006/NĐ-CP, the public official or civil servant causing the damage must submit a report and explanation, which must be confirmed by the competent authority managing public officials and civil servants.

4. Public officials and civil servants who are subject to material responsibility, if they disagree with the decision on compensating material damage made by the agency or person with authority, have the right to appeal according to the laws on appeals and complaints; however, during the waiting period for the resolution of the appeal, they must still comply with the decision on compensating material damage.

II. HANDLING MATERIAL RESPONSIBILITY FOR PUBLIC OFFICIALS AND CIVIL SERVANTS

1. For cases where assets have been fully depreciated but still retain value, the Disciplinary Committee for Material Responsibility shall base the determination of the compensation amount on the actual value of the asset at the time of damage, loss, or harm when considering and recommending.

2. Within fifteen working days from the date of the Decision establishing the Disciplinary Committee for Material Responsibility, the Committee must convene and recommend the amount and method of compensating material damage; in complex cases, the time may be extended but not exceeding forty-five working days. If the Committee sends two invitations and the public official or civil servant causing the material damage does not attend, the Committee will still proceed with the meeting to recommend the amount and method of compensation.

3. In cases where new circumstances are discovered after the decision on compensating material damage has been made, leading to changes in the nature and degree of material damage concluded by the Committee, a new Disciplinary Committee for Material Responsibility must be established to recommend the person with authority to reconsider and decide again on the amount, method, and deadline for compensation.

4. In cases where it is not necessary to establish a Disciplinary Committee for Material Responsibility as prescribed in Clause 6, Article 3 of Decree No. 118/2006/NĐ-CP, within fifteen working days from the date of discovering the act causing property damage, the head of the agency, organization, or unit with authority must issue a decision on compensating material damage; the decision must clearly specify the amount, method, and deadline for compensation.

5. In cases where multiple public officials or civil servants jointly cause loss, damage, or harm to the property of an agency, organization, or unit, and it is impossible to determine the degree of joint liability and violation of each individual, the amount of compensation for material damage will be equally divided among them.

6. In cases where public officials or civil servants fail to fulfill the compensation deadline as specified in the decision, starting from the day after the deadline expires, twenty percent (20%) of their monthly salary will be deducted until full compensation is made according to the decision of the person with authority.

Agencies, organizations, and units directly managing public officials and civil servants are responsible for monitoring, collecting, managing, and using compensation funds in accordance with the provisions of the law.

III. IMPLEMENTATION

1. The Minister, Head of a ministry equivalent to a ministry, or a government agency, Chairman of the People's Committee of provinces and centrally governed cities shall implement and inspect the handling of material responsibility for public officials and civil servants.

2. Abolish the guidance on handling material responsibility for public officials and civil servants as stipulated in Circular No. 05/1999/TT-TCCP dated March 27, 1999, issued by the Government Civil Service Organization Department (now the Ministry of Home Affairs) guiding the implementation of Government Decree No. 97/1998/NĐ-CP on disciplinary actions and material responsibility caused by public officials and civil servants, and other guidance that contradicts this Circular.

3. This Circular takes effect fifteen days after its publication in the Official Gazette.

4. During the implementation process, if there are any difficulties, please reflect them to the Ministry of Home Affairs and the Ministry of Finance for research and resolution.