Directive No. 17/2007/CT-TTg on Strengthening the Management of Assets of Project Management Boards Using State Funds

DIRECTIVE OF THE PRIME MINISTER

On Strengthening the Management of Assets of Project Management Boards

UsageIdOfStateCapital

In recent times, to serve the management of projects using state capital, including ODA funds, the State has allowed Project Management Boards to be provided with office premises, means of transportation, working equipment, and other assets through various forms of construction investment, procurement, and transfer reception. Generally, Ministries, sectors, localities, and Project Management Boards have taken many measures to manage and effectively utilize the provided assets.

However, the management of assets at some Project Management Boards using state capital remains lax; there are cases of improper asset usage, waste; illegal leasing or lending still occur in some places; assets of completed projects but not yet processed according to regulations, causing waste for the state budget. To address these issues, contribute to practicing thrift, combating waste, and corruption, the Prime Minister directs:

1. Ministers, Heads of agencies equivalent to ministries, agencies under the Government, other agencies at the central level, Chairmen of Provincial People's Committees under the Central Government, Chairmen of Councils of Management and General Directors of Economic Groups, State-owned Joint Stock Companies established by the Prime Minister's decision shall immediately conduct inspections on the management and utilization of assets of Project Management Boards using state capital within their jurisdiction to handle according to the following principles:

a) Direct Project Management Boards to recover assets currently managed, used, leased, or lent in violation of regulations;

b) Organize sales, liquidation, and revenue submission to the state budget or transfer according to legal provisions, including assets of completed projects or assets of ongoing projects that are no longer needed;

c) Summarize the implementation of the above tasks and submit to the Ministry of Finance before September 30, 2007;

d) Annually develop Programs and regularly organize inspections on the investment construction, procurement, equipping, managing, and utilizing assets of Project Management Boards within their jurisdiction to promptly take corrective measures against violations causing loss and waste in the use of state assets;

đ) Direct Project Management Boards within their jurisdiction to establish Regulations on the management and utilization of assets of Project Management Boards and fuel consumption standards for cars in accordance with legal provisions and specific ODA agreements;

e) For completed projects that have not reported to competent state authorities for asset processing and cases where asset management and utilization violations occur, responsibility must be clarified for collectives and individuals based on which appropriate disciplinary actions or severe actions as prescribed by law must be proposed to competent authorities. The Project Management Board Director, Head of the project's main investor, or the Head of the project's supervising agency must bear responsibility for losses to assets due to delayed processing or failure to implement management measures within their assigned scope and responsibilities.

2. From the date this Directive takes effect, the management and utilization of assets of Project Management Boards using state capital shall be implemented as follows:

a) Only provide assets to Project Management Boards established in accordance with legal regulations. Contractors, consultants, and supervisors of projects must ensure their own assets to serve consulting, supervision, and construction work. Project Management Boards shall not invest in construction or purchase assets to equip contractors, consultants, or supervisors;

b) Asset provision for Project Management Board operations must be consistent with assigned tasks, meet national standards and norms, ensure thrift and combat waste. Provided assets must be used for their intended purposes, fully recorded, and tracked according to prescribed systems. If specific ODA agreements stipulate different asset management requirements, they shall be followed;

c) Asset provision for each type of asset shall be carried out as follows:

- For office premises: agencies responsible for implementing programs and projects shall arrange and allocate space within their existing office premises to serve Project Management Board operations. If allocation is not possible, the Project Management Board may lease office premises. Leased area and rental prices must comply with current regulations and obtain written approval from the same-level state financial authority before implementation;

- For vehicles serving operations: agencies responsible for implementing programs and projects shall allocate existing vehicles to serve Project Management Board operations. If allocation is not possible, the Project Management Board may lease transportation means. Leasing must comply with prescribed systems, standards, and norms;

- When negotiating specific ODA agreements, if sponsors require the construction of office premises or purchase of vehicles to serve Project Management Board operations, the agency responsible for leading the negotiation of specific ODA agreements must obtain written approval from the same-level state financial authority before signing. Construction of office premises and purchase of vehicles must comply with prescribed standards and norms and specific ODA agreements; state budget funds (including counterpart funds in loan-funded projects) shall not be used to purchase vehicles;

- For transmission equipment, machinery, working equipment, and other fixed assets: Project Management Boards may accept assets according to decisions of competent authorities; purchase or lease from other organizations or individuals using permitted funding sources.

d) The investment in construction, purchase, or leasing of assets to serve the management work of the Project Management Board shall be decided by the competent authority that established the Project Management Board. In cases where the competent authority that established the Project Management Board is not the competent authority for investment decision-making or project approval, such authority must seek the opinion of the competent authority for investment decision-making or project approval before making the investment decision on construction, purchase, or leasing of assets. The investment funds for construction, purchase, or leasing of assets shall be utilized from the project management budget.

đ) All assets invested in construction, purchased, or received according to the decision of the competent authority, the Project Management Board must maintain records and account for them according to the current accounting and statistical regulations. All assets purchased or received according to the decision of the competent authority and assets leased for the operation of the project must be used for their intended purposes, within the prescribed quotas and standards set by the State; they may not be sold, exchanged, transferred, gifted, or donated; they may not be rented, lent, or used for personal purposes by other organizations or individuals.

e) The handling of assets of projects upon completion of the project or when there is no longer a need for their use during the implementation of the project must be carried out in accordance with the guidelines of the Ministry of Finance. The maximum period for asset disposal shall not exceed three months from the date of project completion. For assets temporarily imported and exempted from taxes for foreign consulting experts, if transferred back to the Government of Vietnam after project completion, the Project Management Board or the agency entrusted to handle the assets on behalf of the project shall process the transfer and pay tax (if applicable) in accordance with the provisions of the law.

Strictly prohibit any agencies or units from arbitrarily retaining assets of completed projects.

3. The Ministry of Finance shall be responsible:

a) Guide the implementation of tasks stipulated in Clause 1 of this Directive;

b) By the fourth quarter of 2007, compile the situation of implementing the tasks of ministries, sectors, and localities as stipulated in Point d Clause 1 of this Directive, and proactively address issues within their jurisdiction or propose to the Prime Minister for resolution regarding any violations that have not been addressed or resolved in accordance with the law to ensure strict compliance with regulations on the management and use of state assets and effective implementation of the Law on Thrift and Combating Wastefulness and the Law on Preventing and Combating Corruption;

c) Coordinate with ministries, sectors, localities, and units to regularly inspect the situation of investment in construction, procurement, equipping, managing, and using assets; proactively address issues arising related to the management and use of assets by Project Management Boards;

d) Report to the Prime Minister the results of implementing the above tasks in January 2008.

4. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, other central agencies, Chairmen of People's Councils of provinces and centrally-administered cities, Chairmen of Management Boards, General Directors of Economic Groups, and State-owned Corporations shall organize the strict implementation of this Directive./.