What acts are considered fraud in bidding? How much is the fine for committing fraud in bidding in Vietnam?
What acts are considered fraud in bidding in Vietnam?
According to Clause 4, Article 89 of the 2013 Law on Procurement in Vietnam on fraud and corruption in the bidding process as follows:
Fraud and Corruption
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4. Fraudulent practice, including the following acts:
a) Providing a wrong presentation intentionally or falsifying information, dossier or documents of a party in bidding with the aim to obtain financial benefits or other benefits or with the aim to avoid any obligation;
b) Individuals who personally assess EOI responses, Applications, Bids, Proposals, evaluate result of selection of short list, result of selection of investor, bidder, intentionally providing wrong report or untrue information falsifying the result of selection of bidders/investors.
c) Bidders/investors intentionally provide dishonest information in EOI responses, Prequalification Application, Bids, Proposals falsifying the result of selection of bidders/investors.
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Thus, fraud in bidding includes the following acts:
+ Providing a wrong presentation intentionally or falsifying information, dossier or documents of a party in bidding with the aim to obtain financial benefits or other benefits or with the aim to avoid any obligation;
+ Individuals who personally assess EOI responses, Applications, Bids, Proposals, evaluate result of selection of short list, result of selection of investor, bidder, intentionally providing wrong report or untrue information falsifying the result of selection of bidders/investors.
+ Bidders/investors intentionally provide dishonest information in EOI responses, Prequalification Application, Bids, Proposals falsifying the result of selection of bidders/investors.
What acts are considered fraud in bidding? How much is the fine for committing fraud in bidding in Vietnam?
How much is the fine for committing fraud in bidding in Vietnam?
Pursuant to Clause 3, Article 37 of Decree No. 122/2021/ND-CP stipulating violations against regulations on prohibited acts of bidding as follows:
Violations against regulations on prohibited acts of bidding
A fine ranging from VND 200,000,000 to VND 300,000,000 shall be imposed for any of the following violations which do not constitute a criminal offence as prescribed in Article 222 of the Criminal Code:
1. Unlawfully interfering in bidding activities.
2. Colluding with other bidders in bidding.
3. Commit frauds in bidding.
4. Obstructing bidding activities.
5. Committing regulations of law on assurance of fairness and transparency of bidding.
6. Holding bidder selection before capital sources for contract packages are determined resulting in inability to pay bidders.
7. Illegally transferring the contract.
Note, the fines mentioned above are imposed upon organizations. The fines imposed upon an individual are 1/2 of those imposed upon an organization.
Thus, those who commit fraud in bidding but not to the extent of criminal prosecution may be administratively penalized with a fine ranging from VND 100,000,000 to VND 150,000,000.
When does a person who commits fraud in bidding be prosecuted for criminal liability?
Pursuant to Article 222 of the 2015 Criminal Code of Vietnam (amended and supplemented by point k, Clause 1, Article 2 of the 2017 Law on Amendments to the Criminal Code of Vietnam) stipulating the crime of offences against regulations of law on bidding that lead to serious consequences as follows:
Offences against regulations of law on bidding that lead to serious consequences
1. A person who commits any of the following acts and causes damage assessed at from VND 100,000,000 to under VND 300,000,000 or under VND 100,000,000 while having incurred a disciplinary penalty or administrative penalty for the same offence shall face a penalty of up to 03 years' community sentence or 01 - 05 years' imprisonment:
a) Illegally interfering with bidding activities;
b) Colluding with other bidders in bidding;
c) Commit frauds in bidding;
d) Obstructing bidding activities;
dd) Committing regulations of law on assurance of fairness and transparency of bidding;
e) Holding contractor selection before capital sources are determined that result in inability to pay contractors;
g) Illegally transferring the contract.
2. This offence committed in any of the following circumstances carries a penalty of 03 - 12 years' imprisonment:
a) The offence is committed for self-seeking purposes;
b) The offence is committed by an organized group;
c) The offence involves the abuse of the offender's position or power;
d) The offence involves the use of deceitful methods;
dd) The offence results in damage from VND 300,000,000 to under VND 1,000,000,000.
3. If the damage caused by the offence is assessed at VND 1,000,000,000 to over, the offender shall face a penalty of 10 - 20 years' imprisonment.
4. The offender might also be prohibited from holding certain positions or doing certain works for 01 - 05 years or have all or part of his/her property confiscated.
Thus, a person who commits fraud in bidding shall be prosecuted for criminal liability in the following cases:
- Causing damage assessed at from VND 100,000,000 or more.
- Causing damage assessed at under VND 100,000,000 while having incurred a disciplinary penalty or administrative penalty for the same offence.
Thus, depending on the nature and seriousness of the offence, the person who commits fraud in bidding may be examined for criminal liability according to the respective penalty frames mentioned above.
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