Resolution No. 50/2013/QH13 on the results of supervision regarding "Implementation of the Law on thrift and anti-waste in the use of government bond funds for basic construction investment during the period 2006-2012" issued by the National Assembly

RESOLUTION

on the results of supervision regarding the implementation of the Law on thrift and waste prevention in the use of government bond funds for basic construction investment during the period 2006-2012

Pursuant to Resolution No. 34/2012/QH13 dated November 15, 2012 of the National Assembly on the Program of Supervision Activities of the National Assembly in 2013;

After considering Report No. 425/BC-UBTVQH13 dated May 17, 2013 of the Standing Committee of the National Assembly on the results of supervision; opinions of National Assembly deputies and Report No. 453/BC-UBTVQH13 dated June 18, 2013 of the Standing Committee of the National Assembly on receiving, explaining, and revising the draft Resolution on the results of supervision regarding the implementation of the Law on thrift and waste prevention in the use of government bond funds for basic construction investment during the period 2006-2012,

OF THE NATIONAL ASSEMBLY
SOCIALIST REPUBLIC OF VIET NAM

BASED ON THE CONSTITUTION OF THE SOCIALIST REPUBLIC OF VIETNAM IN 1992 AS AMENDED AND COMPLEMENTED BY RESOLUTION NO. 51/2001/QH10;

Pursuant to the Law on the Supervisory Activities of the National Assembly No. 05/2003/QH11;

The National Assembly basically agrees with the Standing Committee of the National Assembly's report evaluating the implementation of the Law on thrift and waste prevention in the use of government bond funds for basic construction investment during the period 2006-2012.

1. The policy of issuing government bonds for investment in construction projects during the period 2006-2012 was correct. The implementation has achieved positive results, contributing significantly to improving the economic and social infrastructure system, having a large impact on national and local socio-economic development. Many important and urgent projects in transportation, water resources, healthcare, and education have been timely invested and constructed, addressing pressing needs in social life, promoting economic development, ensuring social welfare, and enhancing national defense and security.

RESOLUTION:

Article 1

2. The implementation of the Law on thrift and waste prevention in the use of government bond funds for basic construction investment during the period 2006-2012 had both strengths and weaknesses. Investment efficiency was not high, leading to waste and loss. Expanding the scope of investment and adding many objectives increased the number of projects and total investment amount; approving many projects without considering the ability to balance funds among ministries, sectors, and localities; survey, design, budgeting, review, construction organization, acceptance, settlement, and final accounting work had many shortcomings, causing many projects to be delayed, unfinished, and wasteful.

3. The existing limitations in the implementation of the Law on thrift and waste prevention in the use of government bond funds for basic construction investment during the period 2006-2012 bear responsibility from the National Assembly and the Standing Committee of the National Assembly for deciding some investment policies from government bond funds but not fully assessing their impacts and funding balancing capabilities. The Government bears responsibility for directing the establishment and proposal of project lists that did not ensure funding balancing capabilities; at times, it was slow in issuing mechanisms to control the increase in the number and scale of projects; the mechanism for managing government bond funds was unreasonable, lacking effective control tools; failure to promptly detect and strictly handle violations in the management and use of government bond funds. Relevant ministries, sectors, and localities did not properly fulfill their advisory, decision-making, management, implementation, and inspection responsibilities for projects using government bond funds, leading to losses and waste.

To effectively implement the Law on thrift and waste prevention and use government bond funds efficiently, the National Assembly requests:

1. National Assembly agencies and the Government continue to study and build proposals to amend and supplement laws such as the Law on thrift and waste prevention, the Bidding Law, the Construction Law, the Land Law, the State Budget Law, and the Public Investment Law, linking them with thrift and waste prevention; review, abolish, and amend regulations that are inconsistent, unsuitable, and ineffective in terms of decentralization and management of basic construction investment.

Article 2

2. The Government reviews and reports to the National Assembly on ongoing projects funded by government bonds during the period 2012-2015 that still lack capital. In the short term, use the reserve fund of government bonds for the period 2011-2015 for some ongoing projects that still lack capital, prioritizing important and urgent projects. The Government builds a plan to allocate the reserve fund of government bonds for the period 2011-2015 to be reviewed and decided by the Standing Committee of the National Assembly. The issuance of additional government bond funds for important and urgent projects should be carefully considered to ensure macroeconomic stability, public debt safety, and national financial security, and be submitted to the National Assembly for decision.

3. The Government directs relevant ministries, sectors, and localities:

a) Review planning to ensure systematicity and suitability with implementation capacity; revise, supplement, and perfect the decentralized management mechanism; rectify work on project initiation, review, approval, and investment decision-making, bidding, and final settlement to ensure thrift and effectiveness;

b) Continue to review government bond-funded projects, firmly not allocating capital for increases in total investment amounts that are inconsistent with resolutions of the National Assembly, the Standing Committee of the National Assembly, and the Government. Continue implementing the medium-term government bond investment plan for the period 2013-2015, using centralized state budget funds, other resources, changing investment forms, and promoting socialization to complete projects in the approved list by the National Assembly and the Standing Committee of the National Assembly.

a) Review planning schemes to ensure systematicity and suitability for implementation capabilities; amend, supplement, and perfect the分级制度机制; rectify work on project initiation, review, approval, and investment decision-making, bidding, final accounting to ensure economy and effectiveness;

b) Continue to review government bond-funded investment projects, resolutely not allocating funds for increased total investment adjustments that are inconsistent with the resolutions of the National Assembly and the Standing Committee of the National Assembly, the Government. Continue to implement the medium-term government bond capital plan for the 2013-2015 period, utilizing centralized budget funds, other resources, changing investment forms, and accelerating socialization to complete projects approved by the National Assembly and the Standing Committee of the National Assembly;

c) Review and handle responsibility for violations in the management and use of government bond capital during the period from 2006 to 2012, report the results to the National Assembly at its sixth session, term XIII. The State Audit Office shall conduct audits of projects and programs using government bond capital that exhibit signs of loss and waste.

4. The State Audit Office supplements the 2013 audit plan and subsequent years' plans to conduct comprehensive audits of the government bond program and report the results to the National Assembly.

Article 3

The Standing Committee of the National Assembly, the National Ethnic Council, the Committees of the National Assembly, the Delegations of National Assembly Members, National Assembly deputies, People's Councils at all levels shall supervise the implementation of this Resolution according to their functions and responsibilities.

This Resolution was passed by the National Assembly of the Socialist Republic of Vietnam, term XIII, at its fifth session on June 21, 2013./.