Penalties for health facilities that procure equipment to serve their operation by using state budget in excess of the prescribed limits in Vietnam

According to the regulations on sanctioning administrative violations in the wastefulness combat, when there is an act of procuring equipment for health facilities that exceeds the prescribed limits, how much is the fine?

Penalties for health facilities that procure equipment to serve their operation by using state budget in excess of the prescribed limits in Vietnam (Image from the Internet)

Pursuant to Clause 3, Article 31 of Decree 63/2019/ND-CP (effective from September 1, 2019):

Health facilities that procure equipment to serve their operation by using state budget in excess of the prescribed limits shall incur fines according to regulations in Article 6 hereof.

1. Fines shall be imposed for investment in or procurement of property without a decision from a competent authority or officer. To be specific:

a) A fine ranging from VND 1,000,000 to VND 5,000,000 shall be imposed for investment in or procurement of property that is machinery, equipment or other property (except working office, public service facility and car) with total value of each transaction not exceeding VND 100,000,000;

b) A fine ranging from VND 5,000,000 to VND 10,000,000 shall be imposed for investment in or procurement of property that is machinery, equipment or other property (except working office, public service facility and car) with total value of each transaction of VND 100,000,000 or more;

c) A fine ranging from VND 20,000,000 to VND 50,000,000 shall be imposed for investment in or procurement of property that is working office, public service facility or car.

2. A fine ranging from VND 5,000,000 to VND 10,000,000 shall be imposed for failure to apply centralized procurement methods when procuring property on the list subject to centralized procurement as regulated in the law on management and use of public property.

3. Fines shall be imposed for investment in or procurement of property beyond the limits imposed by competent authorities. To be specific:

a) A fine ranging from VND 1,000,000 to VND 5,000,000 shall be imposed for investment in or procurement of a unit of property whose value exceeds the prescribed spending limit by less than VND 50,000,000;

b) A fine ranging from VND 5,000,000 to VND 10,000,000 shall be imposed for investment in or procurement of a unit of property whose value exceeds the prescribed spending limit by from VND 50,000,000 to under VND 100,000,000;

c) A fine ranging from VND 10,000,000 to VND 20,000,000 shall be imposed for investment in or procurement of a unit of property whose value exceeds the prescribed spending limit by VND 100,000,000 or more.

4. Remedial measures:

The violator is compelled to return the spending amount on invested or procured property that exceeds the prescribed spending limit if committing one of the violations prescribed in Clause 3 of this Article.

5. The amount exceeding the prescribed spending limit on property which is the basis for imposing fines shall be determined as follows:

a) In case of investment in or procurement of property that is car, machinery, equipment or other property in excess of the prescribed quantity, the exceeding spending amount per a unit of property is the unit price of that property determined according to the buying price specified in the invoice or property procurement contract;

b) In case of investment in or procurement of property that is car, machinery, equipment or other property with correct quantity but with prices higher than the prescribed prices, the exceeding spending amount shall be the value of property specified in the invoice or property procurement contract minus (-) the value of property which is determined according to the prescribed price set by a competent authority;

c) In case of investment in or procurement of working office or public service facility beyond the prescribed limit, the exceeding spending amount shall be determined by the difference between the actual area and the prescribed usable area multiplied by the unit purchase price specified in the invoice (or the property procurement contract);

d) The persons that have the power to impose penalties as prescribed in Article 29 and Article 30 hereof shall determine such exceeding spending amounts which shall be used as the basis for imposing penalties in accordance with regulations of the law on penalties for administrative violations and shall assume responsibility for their determination.

Above is our consulting content.

Best regards!

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