Entities incurring penalties for administrative violation in state audit sector in Vietnam

Entities incurring penalties for administrative violation in state audit sector in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is administrative violation in state audit sector?

According to Clause 1, Article 2 of Ordinance 04/2023/UBTVQH15, administrative violation in state audit sector means an act performed through an organization or individual’s fault in breach of provisions of the Law on state audit office, which is not a crime but is bound by this Ordinance to be subject to administrative penalties.

2. Entities incurring penalties for administrative violation in state audit sector in Vietnam

Article 4 of Ordinance 04/2023/UBTVQH15 stipulates the entities incurring penalties for administrative violation in state audit sector in Vietnam as follows:

- Individuals in Points a and c Clause 1 Article 5 of the Law on penalties for administrative violations commit the violations specified in Chapter II of Ordinance 04/2023/UBTVQH15.

+ Persons aged between full 14 and fewer than 16 shall be administratively sanctioned for intentional administrative violations; persons aged full 16 or older shall be administratively sanctioned for all administrative violations.

Persons of the people’s army, people’s police force, who commit administrative violations, shall be handled like other citizens; in cases where it is necessary to apply the sanctioning form of stripping off the right to use licenses, practice certificates or terminable suspension of operations related to defense and security, the sanctioning persons propose the competent agencies, people’s army, people’s police for handle;

+ Foreign individuals and organizations that commit administrative violations within the territory, the territorial waters adjacent areas, the exclusive economic zone and continental shelf of the Socialist Republic of Vietnam; 

In aircrafts with Vietnamese nationality, vessels flagged with Vietnamese nationality shall be administratively sanctioned according to the provisions of Vietnamese laws, except otherwise provided for by international treaties of which the Socialist Republic of Vietnam is member.

- Organizations in Points b and c Clause 1 Article 5 of the Law on penalties for administrative violations commit the violations specified in Chapter II of Ordinance 04/2023/UBTVQH15.

+ Organizations shall be administratively sanctioned for all administrative violations they have committed.

+ Foreign individuals and organizations that commit administrative violations within the territory, the territorial waters adjacent areas, the exclusive economic zone and continental shelf of the Socialist Republic of Vietnam; 

In aircrafts with Vietnamese nationality, vessels flagged with Vietnamese nationality shall be administratively sanctioned according to the provisions of Vietnamese laws, except otherwise provided for by international treaties of which the Socialist Republic of Vietnam is member.

- In case an on-duty official, public employee or person working for the people’s army, people’s public security and cipher forces commits an administrative violation in state audit sector which is related to his/her assigned duties, he/she shall not incur penalties in accordance with the Law on penalties for administrative violations but shall incur penalties in accordance with regulations of the Law on officials and public employees and relevant laws.

A regulatory authority that commits a violation relating to its state management duties shall not incur penalties in accordance with the Law on penalties for administrative violations but shall incur penalties in accordance with regulations of relevant laws.

3. Prohibited acts in state audit in Vietnam

Prohibited acts in state audit in Vietnam are specified in Article 8 of the Law on State Audit Office of Vietnam 2015 (amended 2019), specifically as follows:

- The following acts of SAV, state auditors, and collaborators:

+ Harassing, causing difficulties to audited units;

+ Illegally intervening normal operation of audited units;

+ Giving bribes, taking bribes, and/or brokering bribery;

+ Making false or insufficient audit reports;

+ Misuse of power and/or position for self-seeking purposes;

+ Revealing state secrets or trade secrets of audited units;

+ Revealing information about the audit progress and result that are not officially published.

- The following acts of audited units and entities relevant to governmental auditing activities 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.

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