MoF requests recovery of overdue advance capital from the state budget

The managment of advance capital must comply with regulations. Photo: Internet

According to the State Treasury’s report, the overdue advance capital of ministries, central agencies and localities is about VND12,604 billion.

The overdue and irrecoverable advance capital amounts due to the dissolution of the project management unit or the investor, bankruptcy contractor, pending projects is VND634,488 million. The overdue advance capital of ministries, central agencies is VND 205,224 million and of localities at VND 429,264 million.

Based on the advance and recovery of advance public investment capital from the state budget, monitoring the advance balance at the State Treasury, and implementing Article 10 of the Government Decree No. 99/2021/ND-CP on 11/11/2021 on regulations on management, payment and settlement of projects using public investment capital, and to ensure the management of advance capital in line with regulations, the Ministry of Finance recommends ministers and heads of central agencies to drastically direct investors to implement measures to recover advance capital, especially overdue advances.

Specifically, for overdue advances, agencies need to request investors to classify contracts with overdue advance balances, report on overdue time to handle and recover advances. Agencies need to clearly identify each specific cause of overdue advances to propose a handling plan based on the contents of the signed contract and the responsibilities of each party.

Central authorities also need to require each investor of contracts with overdue advances to implement drastic solutions to recover the advances, including the measure of filing lawsuits in court in accordance with the law on civil rights to protect the interests of the State. Request investors to clarify the responsibilities of relevant organizations and individuals for failing to recover the advance capital for projects that have been implemented for many years, and direct the investors to take measures to recover all the advance capital and finalize the account at the State Treasury.

For on-going projects with completed volumes, agencies need to urgently check and accept the volume and complete payment procedures and work with the State Treasury to recover all overdue advance capital.

For the overdue advances that have not yet been recovered by the localities, the agencies should direct the local State Treasury to review the overdue advance capital amount and take measures to recover all the overdue advance capital.