Public investment is inefficient for “group interests”
- QTH-3Q19 Nguyen Thi Nhung
- Feb 20, 2022
- 5 min read
Updated: Mar 28, 2022
Correct understanding to unify awareness and action on the fight against corruption
(HNM) - Public investment is likened to a "lever", a "fulcrum" to promote key industries and regions and be the locomotive in implementing social welfare policies, ensuring national defense and security. However, the situation of loss, waste, and inefficiency for the sake of "group interests" in public investment in our country is currently complicated, easily becoming a direct cause of "self-evolution", " self-transformation” internally. Finding a solution to prevent loss in this area is a requirement from real life.
1. In our country, public speculation is partitioned into 3 gatherings, including monetary, social, and regulatory exercises. Truth be told, as of late, every open speculation field has found debasement and waste, principally because of unfortunate administration and "group interests".
Resolution of the 4th Central Committee (term XII) on “Strengthening Party building and rectification; prevent and reverse the deterioration of political ideology, morality, lifestyle, and internal "self-evolution" and "self-transformation" manifestations, stating: "Public investment is rampant and effective. low or ineffective; procurement and use of public property in excess of regulations; arbitrary and unprincipled spending of public funds”… Speaking at the Conference on innovation and performance improvement of state-owned enterprises held on October 16, Prime Minister Nguyen Xuan Phuc pointed out some weaknesses in public investment, because there is still the phenomenon of "front yard, back yard", even "back garden" in state-owned enterprises...
The Government report on July 3, 2019, on the overall supervision and assessment of investment in 2018, as reported by the Ministry of Planning and Investment, shows that there are still many projects using state capital with significant violations. violate, cause loss, waste. Specifically, in 2018, there were 30,521 projects that ended their investment and were put into operation, accounting for 54% of the number of investment projects in the period.
Notwithstanding, out of those ventures, 245 have specialized issues and are wasteful. The regions with the largest number of lost and squandered projects are Bac Giang (196 ventures), Phu Though (111 tasks), Quang Ngai (58 projects)...
Previously, on October 2, 2017, at a hearing before the National Assembly Standing Committee on the implementation of the Law on Public Investment (2014 version) and the medium-term public investment plan for the 2016-2020 period, representatives The representative of the Ministry of Planning and Investment announced 72 projects with a total investment of 42,700 billion VND showing signs of inefficiency in ministries, branches and localities, of which the most was at the Ministry of Industry and Trade with 12 representatives. tens of thousands of billions of dollars in losses.
The Ministry of Transport and Communications additionally has numerous wasteful public speculation projects, normally the Feline Linh - Ha Dong metropolitan rail route project with a capital of 205.27%, 6 years delayed and not yet finished. time to place into utilization.
The Ministry of Agriculture and Rural Development has an irrigation project that is expected to irrigate 1,000 hectares, but when finished, it can only irrigate 500 hectares... These are just statistics from 30% of the total projects that need to be reviewed.
In the previous time, numerous authorities have been focused and criminally arraigned for debasement and inefficiency in open speculation, like Dinh La Thang, Trinh Xuan Thanh, Vu Duc Thuan... Most as of late, today On November 14, 2019, the insightful police organization - the Service of Public Security indicted and confined 4 subjects from the Danang - Quang Ngai Turnpike Venture The executive's Board, under the Street Improvement Speculation Company. Vietnam thruways on account of infringement that cause harm during development and acknowledgment of works with speculation of in excess of 34,000 billion VND...
In the past two years, the Government has drastically directed the reduction of inefficient public investment projects; not allowing the start of projects with unknown capital sources... However, the state of public investment is scattered, inefficient, with signs of "group interests" still hidden, not over. In fact, ministries, branches, and localities are still dealing with the consequences of scandalous, inefficient, and wasteful projects left behind in the previous stage.
The explanation of the Minister of Planning and Investment shows that the disbursement of public investment capital is slow due to many factors such as site clearance, bidding, changes in policies and regulations; capacity of investors and contractors; the specific nature of investment spending, the state budget year is 1 year, the capital plan is assigned at the beginning of the year, and the final settlement is reached at the end of the year, so the execution and construction plans of works and projects also depend on capital plan... Besides, 2021 is the transition year between the two terms and strengthens the organization, apparatus and personnel; the first year of a new planning cycle, with the priority of public investment focusing mainly on preparation for the next five-year period. In particular, in 2021, our country's economy and society will be heavily affected by the COVID-19 pandemic, so it will directly affect the disbursement of public investment capital.
2. Loss and waste in public investment lasted for many years, restricting investment efficiency, causing the budget deficit, and increasing national public debt. The most worrying is the negatives such as corruption, bribery, the gutting of works... leading to undermining the values of society, losing people's trust in the Party and State. Because there are localities when launching any project, the first question of people is: Is there a loss? Is there waste? Are there “group interests”? Therefore, to prevent this situation, it is necessary to strengthen some solutions.
At the macro level, it is necessary to seriously implement the legal provisions on public investment; reviewing and amending legal provisions to be consistent with the 2019 Law on Public Investment (effective from January 1, 2020). Specialized management agencies need to strictly manage the use of reserve capital in medium-term public investment plans, not use reserve capital for projects that do not comply with regulations. Along with that, it is strongly strengthening the activities of the State Audit Office to improve the effectiveness of combating loss, waste, and corruption in the investment capital.
At the micro-level, it is necessary to do well the planning work to ensure synchronization, consistency, and limit overlap; minimize the adjustment of planning. Investment policy needs to analyze risks to limit the waste of resources. Along with that, it is necessary to clearly define the rights and responsibilities of individuals and organizations participating in public investment.
In which, focus on strengthening internal inspection and control activities and external inspection and testing; focus on inspecting and inspecting the stages prone to negative losses; detect and clarify, handle quickly, decisively and strictly the mistakes and violations.
In addition, it is necessary to create conditions to promote the role of independent consultants and supervisors in project formulation, investigation, survey, design, construction supervision, preparation, and appraisal of settlement reports. In particular, it is necessary to separate the consulting and supervision force from the specialized ministries to end the situation of "green army, red army", "playing football and blowing the whistle" in investment.
“Group interests” along with poor management have led to corruption and wastefulness, the most obvious consequence of which is public investment becoming a burden on the economy. This will be the direct cause of the loss of trust and the risk of social conflict. This is also a "land" with a high risk of "self-evolution" and "self-transformation" internally. Therefore, it is important to strengthen solutions for transparent and effective public investment management, remove the "ask - give" mechanism, and make investment choices in the direction of making sure you get there.
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