Law Amending and Supplementing Certain Articles of the State Audit Law No. 55/2019/QH14

 

LAW

AMENDMENTS AND SUPPLEMENTS TO CERTAIN ARTICLES OF THE NATIONAL AUDIT LAW

 

Pursuant toThe Constitution of the Socialist Republic of Vietnam;

The National Assembly enacts this Law to amend and supplement some articles ofNational Audit Law No. 81/2015/QH13.

Article 1. Amendments and supplements to certain articles of National Audit Law No. 81/2015/QH13

1. Supplement Clause 2a following Clause 2 of Article 3 as follows:

“2a. The agencies, organizations, and individuals related to audit activitiesare the agencies, organizations, and individuals identified during the audit at the audited entity as being related to the management and use of public finance and state assets of the audited entity.”

2. Amend and supplement certain clauses of Article 10 as follows:

a) Amend and supplement Clause 3 as follows:

“3. Examine and decide on auditing in the following cases:

a) When requested by the National Assembly’s Ethnic Council, the National Assembly’s Committees, the Delegation of National Assembly Members, the Standing Committee of the People's Council, the People's Committee of provinces and centrally-run cities, and agencies and organizations not included in the State Audit Office’s annual audit plan;

b) As prescribed by the Anti-Corruption Law.

In case auditing is not carried out according to the provisions of point a and point b of this clause, the reasons shall be clearly communicated to the requesting agency, organization, or individual.”

b) Supplement Clause 6a following Clause 6 as follows:

“6a. Perform tasks related to anti-corruption as prescribed by the Anti-Corruption Law.”

c) Amend and supplement Clause 8 as follows:

“8. Report the summary results of the annual audit and the implementation of audit conclusions and recommendations to the National Assembly, the Standing Committee of the National Assembly; send the summary report of the annual audit and the implementation of audit conclusions and recommendations to the President of the State, the Government, the Prime Minister, the National Assembly’s Ethnic Council, the National Assembly’s Committees; provide audit results to the Ministry of Finance, the Delegation of National Assembly Members, the People's Council, the People's Committee where the audit was conducted, and agencies, organizations, and individuals as prescribed by laws on anti-corruption and relevant laws.”

3. Amend and supplement certain clauses of Article 11 as follows:

a) Amend and supplement Clause 2 and supplement Clause 2a following Clause 2 as follows:

“2. Require the audited entity and agencies, organizations, and individuals related to audit activities to provide complete, accurate, and timely information and documents for the audit; have access to the national database and electronic data of the audited entity and agencies, organizations, and individuals related to audit activities to extract and collect information and documents directly related to the content and scope of the audit; such access must comply with legal regulations and bear responsibility for protecting confidentiality, security, and safety as prescribed by law.

2a. Conduct checks and verifications of contents directly related to the content and scope of the audit of the audited entity at agencies, organizations, and individuals related to audit activities.”

b) Supplement Clause 6a following Clause 6 as follows:

“6a. Impose administrative penalties in the field of state audit as prescribed by the Administrative Violations Handling Law.”

4. Amend and supplement Clause 4 and supplement Clause 4a following Clause 4 of Article 13 as follows:

“4. Decide and organize the implementation of specific measures to strengthen discipline and order in state audit activities; prevent and combat corruption within the State Audit Office as prescribed by the Anti-Corruption Law; practice thrift and oppose waste and all manifestations of bureaucracy, arrogance, and arbitrary behavior of civil servants and officials under the State Audit Office.

4a. Issue the Audit Procedure for Cases with Signs of Corruption to prescribe the procedures and steps for conducting audits, verifying, and clarifying corruption cases, and publicly reporting audit reports on cases with signs of corruption.”

5. Amend and supplement Clause 3 of Article 30 as follows:

“3. Requests from agencies, organizations, and individuals specified in Clause 3 of Article 10 of this Law and accepted by the Chief State Auditor.”

6. Amend and supplement certain points of Clause 1 and Clause 2 of Article 39 as follows:

a) Amend and supplement Point b of Clause 1 as follows:

“b) Approve the inspection and verification plan at agencies, organizations, and individuals related to audit activities before implementation; approve the audit records of the Audit Teams; prepare audit reports, notify audit results, notify audit conclusions and recommendations of the State Audit Office; report and explain audit results to the Chief Auditor and jointly report and explain those results to the Chief State Auditor; organize the notification of audit results approved by the Chief State Auditor to the audited entity; sign the audit report;”

b) Supplement Point h following Point g of Clause 2 as follows:

“h) When conducting audits, have the right to access, exploit, or authorize in writing according to legal regulations for members of the Audit Team to access and exploit the national database and electronic data of the audited entity and agencies, organizations, and individuals related to audit activities to collect information and documents directly related to the content and scope of the audit under the supervision of the audited entity and agencies, organizations, and individuals related to audit activities regarding the scope of access and exploitation; such access must comply with legal regulations and bear responsibility for protecting confidentiality, security, and safety as prescribed by law.”

7. Supplement Clause 5 following Clause 4 of Article 47 as follows:

“5. In cases where the audit report is compiled from the results of multiple audited entities, the State Audit Office shall notify each audited entity of the audit results concerning their assessment, confirmation, conclusion, and recommendation in the audit report.”

8. Supplement Article 49a following Article 49 in Section 4 Chapter IV as follows:

“Article 49a. Quality Control of Auditing

1. The State Audit organizes the implementation of quality control of auditing to ensure that all auditing activities are inspected and reviewed for quality.

2. Quality control of auditing is carried out regularly and continuously for all auditing activities of the State Audit.

3. The Chief State Auditor specifies in detail the organization and implementation of quality control of auditing.

9. Amend and supplement Clause 4, Clause 5, and add Clause 5a after Clause 5 of Article 56 as follows:

“4. Complaints about the actions of members of the audit team during the auditing process when there is evidence indicating that such actions violate the law and infringe upon their legitimate rights and interests.

5. Complaints about the evaluation, confirmation, conclusion, and audit recommendations in the audit report, notification of audit results when there is evidence indicating that such evaluations, confirmations, conclusions, and audit recommendations violate the law and infringe upon their legitimate rights and interests.

5a. Initiate litigation against decisions resolving complaints in state auditing activities in accordance with the provisions of the Administrative Procedure Law.”

10. Add Article 64a after Article 64 as follows:

“Article 64a. Inspection Authority and State Audit

1. When drafting the annual audit plan, the State Audit within its scope of duties and powers shall be responsible for taking the lead and coordinating with the Government Inspectorate to handle overlaps and intersections.

2. Inspection authorities within their scope of duties and powers shall be responsible for coordinating with the State Audit to handle overlaps and intersections in inspection and auditing activities.

3. When conducting auditing and inspection activities, if overlaps and intersections are discovered, the State Audit shall take the lead and coordinate with the inspection authority to handle them.”

11. Amend and supplement Clause 2 of Article 68 as follows:

“2. Agencies, organizations, and individuals related to auditing activities shall receive notifications of conclusions and audit recommendations from the State Audit in writing and shall be responsible for implementing the audit conclusions and recommendations of the State Audit and submitting reports on the implementation results to the State Audit.”

12. Amend and supplement Chapter VIII as follows:

“CHAPTER VIII

COMPLAINTS, ACCUSATIONS, LITIGATION, AND VIOLATION HANDLING

IN STATE AUDITING ACTIVITIES”

13. Amend and supplement Article 69 as follows:

“Article 69. Complaints and Resolution of Complaints in State Auditing Activities

1. The filing of complaints and resolution of complaints in state auditing activities shall be carried out in accordance with the provisions of this Law and other provisions of the Complaint Law without contravening the provisions of this Law.

2. Complaints in state auditing activities include:

a) Complaints about the actions of the Head of the Audit Team, the Head of the Audit Group, and members of the Audit Team;

b) Complaints about the evaluation, confirmation, conclusion, and audit recommendations in the audit report, notification of audit results, and notification of conclusions and recommendations of the State Audit.

3. The audited entity, agencies, organizations, and individuals related to auditing activities may exercise their right to file complaints (hereinafter referred to as the complainant) regarding the actions of the Head of the Audit Team, the Head of the Audit Group, and members of the Audit Team, and regarding the evaluation, confirmation, conclusion, and audit recommendations in the audit report, notification of audit results, and notification of conclusions and recommendations of the State Audit when there is evidence indicating that such actions, evaluations, confirmations, conclusions, and audit recommendations violate the law and infringe upon their legitimate rights and interests.

4. The statute of limitations for filing complaints is thirty days, counted from the date the complainant receives the audit report, notification of audit results, notification of conclusions, and recommendations of the State Audit, or from the date they become aware of the actions of the Head of the Audit Team, the Head of the Audit Group, and members of the Audit Team. In cases where agencies, organizations, and individuals related to auditing activities file complaints about tax obligations in the notification of conclusions and recommendations of the State Audit, the statute of limitations for filing complaints is thirty days, counted from the date they receive the notification regarding the determination of tax obligations as stipulated in Point b Clause 2 Article 21 of the Tax Management Law No. 38/2019/QH14.

If the complainant cannot exercise their right to file complaints within the prescribed time limit due to illness, natural disasters, enemy attacks, business trips, distant studies, or other objective obstacles, the period during which such obstacles exist shall not be counted towards the statute of limitations for filing complaints.

5. When filing a complaint, the complainant must submit a complaint letter to the Chief State Auditor, accompanied by additional information and evidence (if any) proving that their complaint is based on facts and is lawful. The complaint letter must contain the following main contents:

a) Date of submission of the complaint letter;

b) Name and address of the complainant;

c) Content of the complaint;

d) Reason for the complaint and the complainant's request for resolution;

e) Signature and seal (if any) of the complainant.

6. Within ten days from the date of receipt of the complaint letter, the Chief State Auditor shall be responsible for accepting and resolving the complaint and notifying the complainant in writing; in case of non-acceptance and resolution, a written response must be provided stating the reasons.

7. The resolution of complaints in state auditing activities is regulated as follows:

a) The deadline for resolving complaints shall not exceed thirty days from the date of acceptance of the complaint letter; for complex cases, the resolution period may be extended but shall not exceed forty-five days from the date of acceptance. For complainants located in remote areas with difficult travel conditions, the resolution period shall not exceed forty-five days from the date of acceptance; for complex cases, the resolution period may be extended but shall not exceed sixty days from the date of acceptance;

b) During the resolution of complaints, if it is found that the implementation of part or all of the audit conclusions and recommendations of the State Audit being complained about will cause irreparable consequences, the Chief State Auditor shall issue a decision to temporarily suspend the implementation of part or all of those audit conclusions and recommendations. The temporary suspension decision of the Chief State Auditor shall cease to be effective from the date the decision resolving complaints in state auditing activities becomes legally binding.

c) Within the time limit for handling complaints, the State Audit Office must issue a decision to resolve complaints in state audit activities.

8. The decision to resolve complaints in state audit activities shall take legal effect from the date of signing and must be immediately sent to the complainant and relevant agencies, organizations, and individuals for enforcement. The decision to resolve complaints in state audit activities must include the following main contents:

a) Date of issuance of the decision;

b) Name and address of the complainant and the person complained against;

c) Content of the complaint;

d) Results of verifying the complaint content;

đ) Dialogue results (if any);

e) Legal basis for resolving the complaint;

g) Conclusion on the complaint content;

h) Maintaining, amending, supplementing, or revoking part or all of the audit assessment, confirmation, conclusion, or recommendation being complained about; maintaining or terminating the complained behavior; resolving specific issues within the complaint content;

i) Compensation for damages to the person complained against (if any);

k) Right to initiate litigation at the Court.

9. In cases where part or all of the audit assessment, confirmation, conclusion, or recommendation is amended, supplemented, or revoked according to Clause 8 of this Article, the State Audit Office shall have the responsibility to adjust the audit report and send the adjusted audit report, audit result notification, audit conclusion notification, and recommendation notification to the complainant and relevant agencies, organizations, and individuals within ten working days.

10. During the complaint process, the complainant must still fully and promptly implement the audit conclusions and recommendations of the State Audit Office, except in cases where the State Auditor General decides to temporarily suspend the implementation of the audit conclusions and recommendations of the State Audit Office.”

14. Add Article 69a after Article 69 as follows:

“Article 69a. Initiating Litigation Against Decisions Resolving Complaints in State Audit Activities

1. Decisions resolving complaints in state audit activities that are subject to litigation include:

a) Decisions resolving complaints regarding the actions of the Head of the Audit Team, the Head of the Audit Group, or members of the Audit Team;

b) Decisions resolving complaints regarding the audit assessments, confirmations, conclusions, or recommendations of the State Audit Office in the audit report, audit result notification, audit conclusion notification, or recommendation notification of the State Audit Office.

2. Within thirty days from the date of receipt of the decision resolving complaints in state audit activities, if the complainant disagrees with the decision, they have the right to initiate litigation concerning part or all of the content of the decision resolving complaints in state audit activities before the competent court in accordance with the Administrative Procedure Code.

3. In cases where the court accepts the lawsuit according to Clause 2 of this Article, the State Audit Office shall have the responsibility to transfer the case file to the court within ten working days from the date of receiving the court's request.

4. In cases where the court's judgment or decision declares the partial or full revocation of the decision resolving complaints in state audit activities, the State Auditor General shall have the responsibility to re-examine the case and adjust the audit report, sending the adjusted audit report, audit result notification, audit conclusion notification, and recommendation notification to the plaintiff within ten working days from the date the court's judgment or decision takes legal effect.”

15. Replace certain phrases in some articles, clauses, and points as follows:

a) Replace the phrase "agencies, organizations, and individuals related" with the phrase "agencies, organizations, and individuals related to audit activities" in Clause 2 of Article 8, Point b of Clause 2 of Article 39, Point b of Clause 2 of Article 41, and Point b of Clause 2 of Article 42;

b) Replace the phrase "agencies, organizations, and individuals related to audit activities" with the phrase "agencies, organizations, and individuals related to audit activities" in Clause 2 of Article 46.

16. Repeal Clause 7 of Article 57.

Article 2. Amending and supplementing some articles of the Administrative Procedure Law No. 93/2015/QH13

1. Supplement Clause 6a following Clause 6 of Article 45 as follows:

"6a. Has participated in the preparation of the audit report, issued a decision to resolve complaints in state audit activities that are being litigated;"

2. Amending and supplementing Clause 1 of Article 68 as follows:

"1. Temporarily suspends the enforcement of administrative decisions, disciplinary decisions terminating employment, competition case handling decisions, part or all of the audit conclusions and recommendations of the State Audit Office."

3. Amending and supplementing Article 69 as follows:

“Article 69. Temporary suspension of the enforcement of administrative decisions, disciplinary decisions terminating employment, competition case handling decisions, audit conclusions and recommendations of the State Audit Office

1. The temporary suspension of the enforcement of administrative decisions, disciplinary decisions terminating employment, competition case handling decisions shall be applied if during the process of resolving the case there is evidence indicating that enforcing such decisions will lead to serious consequences that cannot be remedied.

2. The temporary suspension of the enforcement of part or all of the audit conclusions and recommendations of the State Audit Office shall be applied if during the process of resolving the case there is evidence indicating that enforcing part or all of such audit conclusions and recommendations will lead to serious consequences that cannot be remedied."

4. Amending and supplementing Clause 2 of Article 115 as follows:

"2. Organizations, individuals have the right to initiate litigation against decisions resolving complaints about competition case handling decisions, decisions resolving complaints in state audit activities if they disagree with such decisions."

5. Amending and supplementing some points of Clause 2 of Article 193 as follows:

a) Amending and supplementing Point d of Clause 2 as follows:

"d) Accepting part or all of the lawsuit request, declaring invalid part or all of the decisions resolving complaints about competition case handling decisions, decisions resolving complaints in state audit activities contrary to the law; compelling the agency or person authorized to issue decisions resolving complaints about competition case handling decisions, decisions resolving complaints in state audit activities to re-examine the case according to the Competition Law, the State Audit Law, and other relevant laws;"

b) Amending and supplementing Point g of Clause 2 as follows:

"g) Compelling the agency or organization to compensate for losses, restore the legitimate rights and interests of organizations, individuals whose rights have been violated due to administrative decisions, administrative acts, disciplinary decisions terminating employment, competition case handling decisions, actions of the Head of the Audit Team, the Head of the Audit Group, members of the Audit Team, audit evaluations, confirmations, conclusions, and recommendations of the State Audit Office contrary to the law;"

6. Amending and supplementing Points d and e of Clause 1 of Article 296 as follows:

"d) Accepting part or all of the lawsuit request, declaring invalid part or all of the decisions resolving complaints about competition case handling decisions, decisions resolving complaints in state audit activities contrary to the law; compelling the agency or person authorized to issue decisions resolving complaints about competition case handling decisions, decisions resolving complaints in state audit activities to re-examine the case according to the Competition Law, the State Audit Law, and other relevant laws;

e) Determining liability for compensation in cases stipulated in Points b, c, d, and d of Clause 1 of this Article, compelling the agency or organization to compensate for losses, restore the legitimate rights and interests of organizations, individuals, public interest, national interest, and the legitimate rights and interests of third parties who have been violated due to administrative decisions, administrative acts, disciplinary decisions terminating employment, competition case handling decisions, actions of the Head of the Audit Team, the Head of the Audit Group, members of the Audit Team, audit evaluations, confirmations, conclusions, and recommendations of the State Audit Office contrary to the law; determining the liability for compensation of the Supreme People's Court for causing damage to the parties due to serious violations of the law in its decisions that were annulled due to negligence or intent, or determining the liability for reimbursement of the value of property according to the law;"

7. Supplementing the phrase ", decisions resolving complaints in state audit activities" after the phrase "decisions resolving complaints about competition case handling decisions" in Clause 8 and Clause 9 of Article 3, Clause 1 of Article 7, Clause 3 of Article 30, Clause 7 of Article 32, Clause 4 of Article 57, Point d of Clause 2 of Article 73, Clause 1 and Clause 2 of Article 78, Point b of Clause 2 of Article 116, Point d of Clause 1 of Article 118, Point e of Clause 1 of Article 143, Clause 1 of Article 193, the name of the article, Clause 1 and Clause 2 of Article 235, Point a and Point b of Clause 1 of Article 311.

Article 3. Effectiveness

This Law takes effect from July 1, 2020.

 

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This Law was passed by the XIVth National Assembly of the Socialist Republic of Vietnam at its eighth session on November 26, 2019.

 

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