Directive No. 18/2006/CT-TTg on Strengthening the Implementation of Government Decree No. 05/2005/NĐ-CP dated January 18, 2005 on Auctioning Assets

DIRECTIVE
Regarding the strengthening of the implementation of Decree No. 05/2005/NĐ-CP dated January 18, 2005 of the Government on the sale of assets by auction
Nghị định số 01 năm 2005 của Chính phủ về bán đấu giá tài sản

After one year of implementing Decree No. 05/2005/NĐ-CP dated January 18, 2005 of the Government on the sale of assets by auction, the activity of selling assets by auction at many localities has shown positive changes. The policy of administrative reform and socialization of the activity of selling assets by auction as reflected in Decree No. 05/2005/NĐ-CP is gradually being implemented and yielding results. The number of enterprises registered to operate asset auction services has significantly increased. Auction service centers have gradually been able to self-fund their regular operating costs, reducing state budget subsidies, and the effectiveness of asset auction activities has improved. The procedures for selling assets by auction are generally being strictly followed; the rights and legitimate interests of individuals and organizations participating in asset auction activities are better protected.

However, in many localities, some provisions of Decree No. 05/2005/NĐ-CP have not been implemented or have not been strictly followed, and there is inconsistency. In 16 localities, in addition to the auction service center managed by the Department of Finance, another center with the function of selling assets by auction has been established, leading to overlapping functions and responsibilities among management agencies. Some localities have established provincial Appraisal Councils and Asset Auction Councils to regularly sell certain types of assets that, according to the law, should be transferred to the Auction Service Center for organization of the auction. The sale of assets by auction by organizations not established and operating in accordance with Decree No. 05/2005/NĐ-CP has not followed the prescribed procedures and formalities. The effectiveness of state management over organizations and asset auction activities in localities is still low, affecting the protection of national interests and the rights and legitimate interests of individuals and organizations participating in asset auction activities.

To ensure strict, consistent implementation of Decree No. 05/2005/NĐ-CP and further enhance the effectiveness of asset auction activities nationwide, the Prime Minister instructs:

1. Chairmen of provincial people's committees directly under the Central Government shall be responsible:

a) To establish only one auction service center in accordance with Decree No. 05/2005/NĐ-CP. The auction service center established and operating in accordance with Decree No. 05/2005/NĐ-CP is the provincial-level Auction Service Center, which has the function of selling all types of assets specified in Article 5 of Decree No. 05/2005/NĐ-CP.

Localities that have not yet established an asset auction organization in accordance with Decree No. 05/2005/NĐ-CP must urgently establish such an organization to ensure the execution of asset auctions for enforcement in accordance with the Civil Enforcement Law and related guiding documents.

Localities that have established additional public institutions with the function of selling assets by auction outside the Auction Service Center must transfer the auction function to the Auction Service Center or convert the public institution into an asset auction enterprise in accordance with the law on enterprises and Decree No. 05/2005/NĐ-CP. This conversion must be completed before June 30, 2006;

b) To strengthen staff and ensure material conditions for the Auction Service Center so that it can effectively perform its task of selling assets by auction in the locality;

c) To implement measures to encourage the establishment and development of asset auction enterprises in the locality. Create favorable conditions for asset auction enterprises to participate in selling all types of assets in accordance with the law;

d) To direct departments and sectors in the locality to sell state assets through the asset auction organizations specified in Decree No. 05/2005/NĐ-CP to ensure strict compliance with the principles, procedures, and formalities for selling assets by auction; to strengthen supervision of state asset auction activities to prevent corruption and loss of state assets;

đ) To direct departments and sectors in the locality to strictly implement the transfer and organization of the sale of assets as evidence, means of transportation, and other items confiscated and transferred to the state treasury in accordance with Article 61 of the Administrative Violation Handling Ordinance 2002, Articles 31, 32, 33, and 34 of Decree No. 134/2003/NĐ-CP dated November 14, 2003 of the Government detailing the implementation of certain articles of the Administrative Violation Handling Ordinance 2002 and Decree No. 05/2005/NĐ-CP of the Government;

e) To ensure that the sale of assets for enforcement is carried out in accordance with the law on civil enforcement and Decree No. 05/2005/NĐ-CP;

g) To urgently develop a proposal on auction fees to submit to the People's Council for decision on auction fees applicable in the locality.

2. Minister of Justice:

a) To take the lead and coordinate with the Ministers, Heads of Ministries equivalent to Ministries, and Heads of Government Agencies involved to organize reviews and inspections of legal normative documents related to asset auction activities of ministries, sectors, and localities to promptly address provisions contrary to Decree No. 05/2005/NĐ-CP, Article 61 of the Administrative Violation Handling Ordinance 2002, Articles 31, 32, 33, and 34 of Decree No. 134/2003/NĐ-CP; to propose amendments, abolition, or replacement of conflicting or outdated legal provisions. The review and inspection must be completed and reported to the Prime Minister no later than the end of June 2006;

b) To take the lead and coordinate with relevant ministries and sectors to continue guiding the procedures and formalities for selling assets by auction in accordance with Decree No. 05/2005/NĐ-CP and related legal normative documents;

c) Strengthen inspection work on the organization and operation of asset auction throughout the country, promptly handle according to authority or recommend handling for violations discovered during the inspection process.

3. The Minister of Finance:

a) Review and inspect regulatory legal documents, guiding circulars, and business directives within the authority to issue related to asset auction activities to abolish, supplement, or amend contents that are inconsistent with Decree No. 05/2005/NĐ-CP and related regulatory legal documents. The review and inspection must be completed and reported to the Prime Minister no later than the end of June 2006;

b) Promptly issue general guiding documents on the level of collection, management, and use of auction fees from state budget revenue in accordance with laws on fees and charges.

4. The Minister of Justice shall be responsible for urging and inspecting the implementation of this Directive and compiling the situation to report to the Prime Minister.

5. This Directive shall take effect fifteen days from the date of publication in the Official Gazette.

Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial and municipal People's Committees directly under the Central Government are responsible for implementing this Directive./.