Four forms of handling violations in investment under the PPP method from 2021

04 forms of handling violations in PPP investment from 2021 (Illustrative image)

To be specific, according to Article 98 of the Law on Public-Private Partnership (PPP) 2020, violations in PPP investment will be handled as follows:

1. Prohibition from participating in PPP investment activities is applied to organizations and individuals committing 12 prohibited acts in PPP investment as stipulated in Article 10 of this Law.
2. Cancellation of bidding, suspension of bidding, non-recognition of investor selection results, or declaration of invalidity of decisions by competent authorities, contracting authorities, or bidding organizers upon discovery of violations of this Law and other relevant legal regulations.
3. Termination or suspension of contracts upon discovery of breaches of contract or violations of this Law and other relevant legal regulations.
4. In addition to the aforementioned forms of violations handling, organizations and individuals violating legal regulations on PPP investment shall, depending on the nature and extent of the violations, also be disciplined, administratively sanctioned, or criminally prosecuted in accordance with the law.

Additionally, Article 34 of this Law stipulates that bidding cancellation is implemented in the following cases:

- All prequalification documents and bidding documents fail to meet the requirements of the prequalification invitation documents and bidding invitation documents;- Change in the objectives or scale stated in the prequalification invitation documents and bidding invitation documents;- The prequalification invitation documents and bidding invitation documents do not comply with this Law or other relevant legal regulations, leading to the selected investor not meeting the requirements to implement the project;- The organization of investor selection fails to comply with this Law or other relevant legal regulations, leading to restricted competition among investors;- Evidence of bribery, receipt of bribes, bribery brokerage, bid-rigging, fraud, abuse of position and power to illegally interfere in bidding activities, leading to distortion of investor selection results.

Details can be found at Law on Public-Private Partnership (PPP) 2020 effective from January 1, 2021.

Ty Na

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