Anti-corruption in focus

We are paying dearly for unfocused investment which has resulted in huge unpaid amounts in basic construction and large numbers of half-done works. Is that the case that investment discipline not being properly observed?

In fact, budget discipline was not properly adhered to by ministries, sectors and local governments. Blames on lack of discipline in budget spending were repeated in many NA sessions but no remarkable improvements have been so far recorded.

Ministry of Finance reports mirror huge unpaid amounts in construction field in localities. Particularly, 15 provinces eyed unpaid debts in construction field surpassing 100 per cent of allocated budget amounts. These include 12 northern locations, two southern and one central provinces.

How about repayment of those unpaid amounts?

In my view, repayment is a must but concrete responses are needed in respect to how to pay and who will bear responsibility for this excessive spending, which has put pressure on macroeconomic stability.

In 2013 budget allocations we set aside VND103.7 trillion ($4.9 billion) for public debt repayment whereas we would collect VND99 trillion ($4.7 billion) only from crude oil.

Restructuring public investment to bolster capital usage efficiency is then crucial.

The investment development capital for this year remains low due to a shortfall in budget collections. Would this lead to negative phenomena in racing for repayment?

It is important to enhance transparency in allocating budget capital in 2013 whereas project developers need to give priority to projects which can be completed within the year.

What are the responsibilities of ministries, sectors and localities on the back of such huge debt amount owed by the state in basic construction?

Both sides bear the blame. Why firms, knowing of capital scarcity, had proposed advancing their capital to handle construction work and accepted later repayment. This was one of the causes leading to the ‘vying for projects and for investment capital’ practice in the past.  

State investment capital for construction works during 2013-2015 was allocated and ministries, sectors and localities held responsible in capital distribution. What should be done to scale up supervision of National Assembly delegations towards public investment projects in their areas?

First and foremost, NA deputies in localities should be aware of the needs to avoid unfocused investments and boost capital usage efficiency. This should be considered one of the key measures to tackle waste and corruption in basic construction. The next step is to increase transparency in capital allocation as well as progress and targets of investment projects in their areas.