Decree No. 24/1999/NĐ-CP On the issuance of the Regulation on organizing the mobilization, management, and utilization of voluntary contributions from the people for the construction of infrastructure in communes and towns.

DECREE

Regarding the issuance of the Regulation on organizing the mobilization, management, and utilization of voluntary contributions from the people for the construction of infrastructure in communes and towns

and using voluntary contributions from

the people to construct the infrastructure of communes and towns

 _________________________________________

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the State Budget Law dated March 20, 1996; Law No. 06/1998/QH10 dated May 20, 1998 amending and supplementing certain articles of the State Budget Law;

After consultation with Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).the Central Steering Committee of the Vietnam Fatherland Front;

At the proposal of the Minister of Finance, 

DECREE:

Article 1. Issued herewith along with this Decree is the Regulation on organizing the mobilization, management, and utilization of voluntary contributions from the people for the construction of infrastructure in communes and towns.

Article 2. This Decree shall take effect fifteen days from the date of signature.

Article 3. The Minister of Finance shall guide the implementation of this Decree.

Article 4. Ministers, Heads of ministerial-level agencies, Heads of government-attached agencies; Chairpersons of People's Committees of provinces and centrally governed cities shall be responsible for implementing and organizing the implementation of this Decree.

                                   

REGULATIONS

On organizing the mobilization, management, and utilization

of voluntary contributions from the people for the construction of infrastructure in communes and towns

(Issued together with Decree No. 24/1999/NĐ-CP dated April 16, 1999 of the Government).

 

PART I

GENERAL PROVISIONS

Article 1. The mobilization of voluntary contributions from the people for investment in constructing infrastructure in communes and towns must be discussed and decided by the people on the basis of democracy and transparency, following majority decision-making. The People's Committee of the commune or town (hereinafter referred to as commune) shall be responsible for organizing the mobilization, management, and utilization of voluntary contributions from the people in accordance with the provisions of this Regulation.

Article 2. After being decided and agreed upon by the People's Council of the commune and the majority of the people in the locality regarding the investment plan for constructing infrastructure projects in the commune, the People's Committee of the commune shall be responsible for implementing that investment plan. The investment plan must be consistent with the planning for construction, transportation, water resources, and meet the requirements for protecting the landscape and environment of the locality.

Article 3. Voluntary contributions from the people for investing in constructing infrastructure projects in the commune must be used for their intended purposes; contributions for a specific project must be invested in that project.

Article 4. The level of mobilization of contributions from the people, exemptions, and reductions for social policy beneficiaries (as stipulated by the People's Council of the province or centrally governed city) shall be discussed and decided by the people based on the average income and contribution capacity of the people in the locality. This contribution level must fall within the maximum total contribution level prescribed by the People's Council of the province or centrally governed city.

Chapter II

            Organization of collection, management, and utilization of contributions from the people

Article 5. The sources of voluntary contributions from the people shall be used to supplement investment capital for new construction, upgrading, and repair of infrastructure projects in the commune and inter-village infrastructure projects within the commune (collectively referred to as infrastructure projects in the commune), including electricity, transportation, schools, health stations, cultural, sports facilities, clean water systems, irrigation canals, and other public works.

Article 6.

1. When there is a need to invest in new construction or upgrade and repair of infrastructure projects in the commune, the People's Committee of the commune shall prepare the budget estimate, design of the project, and related documents to submit to the People's Committee of the district for review. The project dossier includes:

a) Total capital requirement for constructing and completing the project, detailed allocation according to each component (if applicable);

b) Design and report on the anticipated progress of the project;

c) Anticipated and balanced sources of funding allocated for the project, including the portion mobilized from the people's contributions;

d) Contribution levels for each household.

2. The People's Committee of the commune shall organize discussions among the people to decide on the project budget estimate and the level of mobilization of contributions from the people. The method of organizing these discussions shall be carried out in accordance with Article 7 of this Regulation.

Article 7. The mobilization of voluntary contributions from the people, management, and utilization of those contributions for constructing infrastructure in the commune shall be implemented through direct discussion and decision-making by the people.

1. The People's Committee of the commune shall take the lead in coordinating with the Vietnam Fatherland Front Committee, the Association of Former Combatants, the Farmers' Association, and other mass organizations to organize discussions among the people to decide by one of the following methods:

a) Holding meetings in each village, hamlet, ward, or village group to discuss and vote openly or by secret ballot, and record the minutes to send to the People's Committee of the commune;

b) Holding meetings of household heads to discuss and vote openly or by secret ballot, and record the minutes to send to the People's Committee of the commune.

These meetings shall be held when at least two-thirds of the people (or households) in attendance participate.

c) If meetings cannot be organized, then distribution of ballots to collect opinions from households shall be conducted.

2. If the majority of the people or household heads agree, the People's Committee of the commune shall organize the mobilization of contributions from the people, and the people shall have the obligation to strictly comply with decisions agreed upon by the majority.

3. In cases where some household heads do not agree, the People's Committee of the commune shall be responsible for leading, together with the Vietnam Fatherland Front Committee, the Association of Former Combatants, the Farmers' Association, and other mass organizations, to persuade and explain to these households to voluntarily contribute in accordance with the agreement of the majority of household heads as stipulated in Clause 2 of this Article. If it is determined that the decision of the majority does not comply with the law and local administrative regulations, the People's Committee of the commune shall request the People's Committee of the district to examine and make a decision.

Article 8.

1. The contribution level for each target group shall be calculated by the People's Committee of the commune based on:

a) The maximum total contribution level prescribed by the People's Council of the province or centrally governed city;

b) The average income and contribution capacity of the people in the locality;

c) The capital requirement needed for mobilizing contributions for the project. The capital requirement needed for mobilizing contributions shall be calculated based on the approved total project budget after deducting the following sources of capital:

Assistance from organizations and individuals;

Financial support from domestic organizations and individuals;

Aid from foreign organizations and individuals.

d) The mobilization schedule shall be linked to the project implementation schedule.

2. The levels of contributions solicited from each subject, including those cases exempted or reduced, shall only be implemented after obtaining the agreement of the majority of household heads. The People's Committee of the commune has the responsibility to publicly announce the contribution levels, exemption cases, and reduction levels before organizing the solicitation.

Article 9.

1. When the investment project is approved, the People's Committee of the commune shall establish the Commune Construction Management Board. The Construction Management Board consists of a Chairperson, members who are some members of the People's Committee of the commune, and other relevant members. The Chairperson of the Construction Management Board shall be appointed by the Chairman of the People's Committee of the commune after consultation and agreement with the Standing Body of the Commune People's Council, the People's Committee for the United Front and other mass organizations at the same level. The Construction Management Board shall perform the following tasks:

a) Organizing and supervising the construction of the project to ensure compliance with the budget estimate, design, and approved schedule;

b) Managing materials, assets, and capital invested in the project;

c) Settling accounts for the project in accordance with time limits and regulations.

2. The Commune Finance Office shall be responsible for advising the commune on the project budget estimate, forms, and levels of soliciting contributions from the people, and shall be responsible for professional management and utilization of the solicited contributions from the people in accordance with current State regulations.

3. For particularly difficult communes supported by the State with investment capital to build infrastructure according to Decision No. 135/1998/QĐ-TTg dated July 31, 1998 of the Prime Minister, if the commune does not have the conditions to establish a Construction Management Board, it may establish a District-level Construction Management Board to organize the management of projects funded by State support capital and people's contributions for each commune. The Chairperson and members of the District-level Construction Management Board shall be decided by the Chairman of the District People's Committee after consultation and agreement with the Standing Body of the District People's Council, the District People's Committee for the United Front, and other mass organizations at the same level.

Article 10. Communes shall establish a Project Supervision Board to oversee the process of soliciting, managing, and using contributions from the people.

1. Members of the Project Supervision Board shall be elected by the people among representatives of households in the commune and may also be elected from representatives of the Commune People's Inspection Board, the United Front Committee, the Veterans' Association, the Farmers' Association, and other mass organizations in the commune.

2. The Project Supervision Board shall be responsible for comprehensively overseeing all aspects and stages of soliciting, managing, and using contributions from the people for investment and construction of projects; overseeing the acceptance, handover, and settlement of projects in accordance with regulations, purposes, and ensuring effectiveness.

3. The Project Supervision Board shall be responsible for promptly reporting to the competent authority to handle any violations during the organization of soliciting, managing, and using contributions from the people for investment and construction of communal infrastructure.

Article 11.

1. Based on the policy and approved contribution levels, the Chairman of the People's Committee of the commune shall direct the Village Chiefs and Group Heads to cooperate with the Mass Front Work Teams in villages and groups to mobilize the people to contribute to building communal infrastructure projects.

2. The Commune Finance Office shall be responsible for receiving and managing the contributions from the people. In cases where authorized by the People's Committee of the commune, Village Chiefs and Group Heads shall collect contributions from the people within their areas and must submit them fully and timely to the Commune Finance Office.

Article 12.

1. The form of soliciting contributions from the people can be in the form of money, goods, or labor days. Contributions in the form of labor days or goods must be converted into money at the time of contribution for accounting purposes and must be managed and monitored separately.

2. The People's Committee of the commune shall stipulate the conversion of labor days and goods contributed by the people into money for accounting purposes based on the estimated conversion rates agreed upon by the people in accordance with Article 7 of this Regulation, while ensuring compatibility with local market prices.

3. If the price of goods or labor days at the time of contribution differs by more than 20% from the estimated price, the communes must organize the people to discuss and agree on the prices for converting goods and labor days contributed by the people. The organization of meetings for discussion shall be carried out in accordance with Article 7 of this Regulation.

4. When collecting contributions from the people, the provisions of the current commune budget accounting vouchers must be strictly followed. The Commune Finance Office shall be responsible for managing and submitting the full amount in a timely manner to the commune account opened at the District Treasury in accordance with regulations.

Article 13.

1. The management and use of contributions from the people for investment projects must comply with State regulations and the approved budget estimates.

2. The Commune Finance Office must maintain accounting records to reflect and account for the collection and use of contributions from the people for the project.

Article 14.

1. In cases where infrastructure construction projects require compensation for land clearance, the People's Committee of the commune shall handle it through the following methods:

a) In cases of minor damage, propaganda and mobilization of the people to consider it as voluntary contributions for the project.

b) If the compensation amount is large, it must be specifically included in the project budget to calculate the contribution level or develop a plan to recover funds from beneficiaries of the project to offset the costs.

2. Costs related to tendering, design invitation, organization of review, and project acceptance (if applicable) shall be included in the value of the project and must ensure thorough cost savings and financial transparency.

Article 15.

1. Construction work must prioritize the use of labor and construction forces within the commune, and tenders and competitive bidding shall only be organized with external construction forces when the project requires high technical skills or complex construction characteristics that cannot be handled by the local construction forces. The organization of competitive bidding must comply with current State regulations.

2. For construction projects organized and carried out by the commune itself, the Construction Project Management Board must maintain a detailed record book tracking expenses on materials, labor days, machine hours, and other costs for the project.

Article 16.

1. Upon completion of construction, before handing over the project for use, communes must organize the acceptance inspection of the project in accordance with the approved design and budget estimate.

2. The acceptance inspection of the project must involve the Construction Supervision Board, representatives of the United Front and member organizations.

3. After the acceptance inspection of the project, the Commune People's Committee must organize the handover of the project to the manager and user. The use of the project must be in accordance with its intended purpose, and each year there must be plans and allocation of funds for maintenance, repair, and protection of the project.

Article 17. After the project is accepted, the Construction Project Management Board must promptly settle accounts in accordance with regulations. The settlement value of the project must correspond to the approved budget estimate, and under no circumstances shall actual excess values beyond the approved budget be accepted for settlement if not approved by the competent authority.

The Commune Finance Office is responsible for settling revenues and using the contributions collected from the people, calculating and determining the difference between actual receipts and actual expenditures for the project. The handling of revenue-expenditure discrepancies (if any) must be discussed and decided by the people according to the provisions of Article 7 of this Regulation.

Article 18. After settling the project accounts, the Commune People's Committee must prepare a report on the situation of collection, management, and use of people's contributions for public disclosure to the people and simultaneously send it to the District People's Committee. The reports include:

1. Financial report on the situation of mobilization, management, and use of contributions for the project. The report must fully reflect all revenues and expenditures and present them in balance, ensuring compliance with prescribed regulations, accuracy, and clarity;

2. Report on the implementation of the design budget and construction budget of the project;

3. Acceptance minutes and quality assessment report of the project;

4. Report on the effectiveness of the mobilized capital usage of the project.

Article 19. The Commune People's Committee must publicly disclose financial matters related to the mobilization, management, and use of people's contributions for each project or sub-project through posting at the Commune People's Committee office and public announcement during direct meetings with the people.

Article 20. The process of organizing the mobilization, management, and use of people's contributions for communal infrastructure investment construction is subject to inspection and supervision by state functional agencies and the United Front.

Article 21. The Chairman of the Commune People's Committee is responsible for explaining and responding to the concerns, complaints of the people, and suggestions of the United Front Committee, Veterans' Association, Farmers' Union, other mass organizations, the People's Inspectorate Board, and the Construction Supervision Board regarding the organization of mobilization, management, and use of contributions for communal infrastructure projects. Complaints and accusations from the people must be resolved in accordance with current laws, and must be processed for resolution no later than 10 days from the date of receiving complete complaint and accusation files.

Article 22. In cases where people within the scope of a village, hamlet, commune, or a community (based on religion or lineage) of a commune voluntarily organize fundraising and self-manage investment in constructing infrastructure projects directly serving the interests of the community in that village, hamlet, commune, or community, they shall not be required to comply with the above provisions, but the People's Committee of the commune shall have the responsibility:

1. To guide and assist the people in implementing investment policies ensuring overall planning, avoiding ostentatious forms; to mobilize funds in accordance with the average income and contribution capacity of the people in the locality.

2. To guide and assist the people in implementing technical measures and construction procedures to ensure the quality and aesthetics of the project.

3. To guide the settlement and finalization of accounts for the project, to implement financial transparency; to prepare reports to higher authorities to record and aggregate the contributions made by the people for the construction of infrastructure in the locality./.