What cases shall be fined for the act of illegally interfering with audit activities in Vietnam?

What cases shall be fined for the act of illegally interfering in audit activities in Vietnam? (Internet image)

The National Assembly Standing Committee of Vietnam approved Ordinance 04/2023/UBTVQH15 dated February 28, 2023 providing for penalties for administrative violations in the field of state audit.

1. What is audit activities of SAV?

According to Clause 5, Article 3 of the Law on State Audit 2015, audit activities of SAV involve assessment and determination of properness and truthfulness of information about public finance and/or public property or financial statements related to the management and use of public finance and/or public property; adherence to law and efficiency of management, use of public finance and/or public property.

2. What cases shall be fined for the act of illegally interfering in audit activities in Vietnam?

According to Article 13 of Ordinance 04/2023/UBTVQH15, the administrative fines for illegal interference in audit activities are as follows:

- A fine ranging from VND 20,000,000 to VND 30,000,000 shall be imposed for concealing violations of the law on public finance and public property.

- A fine ranging from VND 30,000,000 to VND 50,000,000 shall be imposed for illegal interference in audit activities and audit results of the State Audit Office of Vietnam, the audit team, and members of the audit team.

In addition, remedial measures must be taken: Forcible return of illegal profits (if any) due to the performance of administrative violations in the field of state audit specified in Clauses 1 and 2, Article 13 of Ordinance 04/2023/UBTVQH15.

3. Administrative violations in the field of state audit in Vietnam

Sanctioned administrative violations in the field of state audit in Vietnam according to Article 5 of Ordinance 04/2023/UBTVQH15 include:

- Prohibited acts specified in Clauses 2 and 3, Article 8 of the Law on State Audit 2015 (amended 2019):

+ The following acts of audited units and relevant entities in the field of state audit are prohibited:

++ Refusing to provide information, documents serving the audit at the request of SAV and state auditors;

++ Obstructing the work of SAV and state auditors;

++ Making false, untruthful, insufficient, unpunctual reports, or failure to provide objective information about the audit carried out by SAV;

++ Giving bribes to state auditors and collaborators;

++ Shielding violations against regulations of law on public finance and/or public property.

+ Every organization and individual is prohibited to illegally intervene the audit and audit result of SAV, state auditors, and collaborators.

- Violations against regulations on obligations and responsibilities of the audited entity specified in Articles 57 and 58 of the Law on State Audit 2015 (amended 2019) include:

+ Article 57 of the Law on State Audit 2015 (amended 2019) on the duties of audited units:

++ Comply with the audit decision.

++ Promptly, adequately make and send financial statements, reports on use of capital, project management; revenue and expenditure plan, report on execution and statement of budget to SAV on request.

++ Promptly and adequately provide information, documents serving the audit at the request of SAV and state auditors; take responsibility for the accuracy, truthfulness, and objectiveness of the information, documents provided.

++ Respond and explain the issues related to the audit contents at the request of the audit delegation and state auditors.

++ Sign the audit record.

++ Comply with opinions given by SAV with regard to management, use of public finance and/or public property; take measures for overcoming the weaknesses according to the opinions of SAV; submit a written report on compliance with such opinions to SAV.

+ Article 58 of the Law on State Audit 2015 (amended 2019) on the responsibility to send financial statements, state budget statements, and budget estimates of audited units:

++ At the end of the budget year, budget estimate units level I of central government budget, the People’s Committees of provinces, and audited units shall send their financial statements, state budget statements, and budget estimates of the next year to SAV.

++ The Ministry of Finance, Departments of Finance of provinces shall send reports on execution of budget estimates in the year to SAV.

++ State Auditor General shall specify time and location for receiving reports as prescribed by law.

- Violations against regulations on responsibility of entities relevant to governmental auditing activities specified in Article 68 of the Law on State Audit 2015 (amended 2019) include:

Entities relevant to governmental auditing activities have the responsibility to promptly and adequately provide information, documents serving the audit at the request of SAV and state auditors; take responsibility for the accuracy, truthfulness, and objectiveness of the information, documents provided.

Entities relevant to governmental auditing activities are entitled to receive written notifications of SAV’s conclusions and requests and have the responsibility to comply with SAV’s conclusions and requests and send reports to SAV.

+ The Ministry of Finance, the Ministry of Planning and Investment, other agencies of the Government, the People’s Committees of provinces have the responsibility to promptly and adequately provide information, documents for SAV to perform the tasks mentioned in Clause 4 Article 10 of the Law on State Audit 2015 (amended 2019).

More details can be found in Ordinance 04/2023/UBTVQH15 issued on February 28, 2023.

Vo Van Hieu

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE