Law on Amending Law on State Audit, Law No. 55/2019/QH14

LAW

Amending and Supplementing a Number of Articles of
the Law on State Audit^[1]

Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates the Law Amending and Supplementing a Number of Articles of Law No. 81/2015/QH13 on State Audit.

Article 1. To amend and supplement a number of articles of Law No. 81/2015/QH13 on State Audit

1. To add the following Clause 2a below Clause 2, Article 3:

“2a. Agencies, organizations and individuals involved in audit activities means agencies, organizations and individuals that, in the process a unit is audited, are identified to be involved in the management and use of public finance or public assets of such unit.”.

2. To amend and supplement a number of clauses of Article 10 as follows:

a/ To amend and supplement Clause 3 as follows:

“3. To consider and decide on audits:

a/ That are not included in the State Audit Office of Vietnam’s annual audit plan but are requested by the Ethnic Council or Committees of the National Assembly, National Assembly deputies’ delegations, Standing Bodies of People’s Councils or People’s Committees of provinces or centrally run cities, or agencies or organizations;

b/ In accordance with the Anti-Corruption Law.

In case of failing to conduct audits under Points a and b of this Clause, to notify the reason to the requesting agencies, organizations or individuals.”;

b/ To add the following Clause 6a below Clause 6:

“6a. To perform corruption prevention and combat tasks in accordance with the Anti-Corruption Law.”;

c/ To amend and supplement Clause 8 as follows:

“8.  To make summarization reports on annual audit results and results of implementation of audit conclusions and proposals to the National Assembly and National Assembly Standing Committee; to send such reports to the President, Government, Prime Minister, and Ethnic Council and Committees of the National Assembly; to provide audit results to the Ministry of Finance, National Assembly deputies’ delegations, and People’s Councils and People’s Committees of localities where audits are conducted, and to agencies, organizations and individuals in accordance with the anti-corruption law and other relevant laws.”.

3. To amend and supplement a number of clauses of Article 11 as follows:

a/ To amend and supplement Clause 2, and add Clause 2a below Clause 2 as follows:

“2. To request audited units and agencies, organizations and individuals involved in audit activities to fully, accurately and promptly provide information and documents serving audits; to access the national database and e-databases of audited units and agencies, organizations and individuals involved in audit activities to search and collect information and documents directly related to the audit contents and scope; during the access, to comply with regulations and take responsibility for secret protection, confidentiality and security in accordance with law.

2a. To conduct the examination and comparison of contents that are directly related to the audit contents and scope of audited units in agencies and organizations and of individuals involved in audit activities.”;

b/ To add the following Clause 6a below Clause 6:

“6a. To sanction administrative violations in the field of state audit in accordance with the Law on Handling of Administrative Violations.”.

4. To amend and supplement Clause 4, and add Clause 4a below Clause 4, Article 13 as follows:

“4. To decide on, and organize the implementation of, specific measures to enhance discipline in state audit activities; to prevent and combat corruption in state audit offices under the Anti-Corruption Law; to practice thrift and combat waste and all manifestations of bureaucracy, arrogance and authoritarianism of civil servants and public employees of the State Audit Office of Vietnam.

4a. To issue a process for auditing cases showing signs of corruption in order to prescribe the order and procedures for conducting audits, verification and clarification of corruption cases, and disclosure of audit reports for cases showing signs of corruption.”.

5. To amend and supplement Clause 3, Article 30 as follows:

“3. The request of an agency, organization or individual defined in Clause 3, Article 10 of this Law, which has been accepted by the State Auditor General.”.

6. To amend and supplement a number of points of Clauses 1 and 2, Article 39 as follows:

a/ To amend and supplement Point b, Clause 1 as follows:

“b/ To approve examination and comparison plans at agencies, organizations and individuals involved in audit activities and report the plans to the chief auditor before the approval; to approve audit records of audit groups; to make audit reports and notify audit results as well as conclusions and proposals of the State Audit Office of Vietnam; to report and explain audit results before the chief auditor and join the chief auditor in reporting and explaining such results to the State Auditor General; to notify the audit results approved by the State Auditor General to audited units; to sign audit reports;”;  

b/ To add the following Point h below Point g, Clause 2:

“h/ When conducting an audit, to access and exploit the national database and e-databases of audited units and agencies, organizations and individuals involved in audit activities in order to collect information and documents that are directly related to the audit contents and scope provided that the scope of information access and exploitation must be under supervision of the audited units and agencies, organizations and individuals involved in audit activities, or authorize in writing as prescribed by law to a member of the audit team to do so; during the access, to comply with regulations and take responsibility for secret protection, confidentiality and security in accordance with law.”.

7. To add the following Clause 5 below Clause 4, Article 47:

“5. In case an audit report is summarized from audit results of two or more audited units, the State Audit Office of Vietnam shall send to each audited unit a notice of audit results, stating the audit evaluation, certification, conclusion and proposal for such unit in the audit report.”.

8. To add the following Article 49a below Article 49, Section 4, Chapter IV:

“Article 49a. Control of audit quality

1. The State Audit Office of Vietnam shall organize the control of audit quality to ensure that all audit activities are subject to quality inspection and control.

2. The control of audit quality shall be conducted regularly and continuously for the entire audit activities of the State Audit Office of Vietnam.

3. The State Auditor General shall specifically prescribe the organization of audit quality control.”.

9. To amend and supplement Clauses 4 and 5, and add Clause 5a below Clause 5, Article 56 as follows:

“4. To complain about acts of members of audit teams in the course of conducting audits when having grounds to believe that such acts are illegal and infringe upon their lawful rights and interests.

5. To complain about audit evaluations, certifications, conclusions and proposals in audit reports and notices of audit results when having grounds to believe that such evaluations, certifications, conclusions and proposals are unlawful and infringe upon their lawful rights and interests.

5a. To initiate lawsuits over decisions on settlement of complaints in state audit activities in accordance with the Law on Administrative Procedures.”.

10. To add the following Article 64a below Article 64:

“Article 64a. Inspection agencies and the State Audit Office of Vietnam

1. When making its annual audit plan, the State Audit Office of Vietnam shall, within the ambit of its tasks and powers, assume the prime responsibility for, and coordinate with the Government Inspectorate of Vietnam in, handling overlaps.

2. Inspection agencies shall, within the ambit of their tasks and powers, coordinate with the State Audit Office of Vietnam in handling overlaps in inspection and audit activities.

3. The State Audit Office of Vietnam shall assume the prime responsibility for, and coordinate with inspection agencies in, handling overlaps detected in the course of conducting audit and inspection activities.”.

11. To amend and supplement Clause 2, Article 68 as follows:

“2. Agencies, organizations and individuals involved in audit activities may receive notices of the State Audit Office of Vietnam’s conclusions and proposals and shall implement such conclusions and proposals and send reports on implementation results to the State Audit Office of Vietnam.”.

12. To amend and supplement the title of Chapter VIII as follows:

“Chapter VIII

COMPLAINTS, DENUNCIATIONS, INITIATION OF LAWSUITS, AND HANDLING OF VIOLATIONS IN STATE AUDIT ACTIVITIES”.

13. To amend and supplement Article 69 as follows:

“Article 69. Complaints and settlement of complaints in state audit activities

1. The lodging and settlement of complaints in state audit activities must comply with this Law and relevant provisions of the Law on Complaints which are not contrary to this Law.

2. Complaints in state audit activities include:

a/ Complaints about acts of heads of audit teams, leaders of audit groups, and members of audit teams;

b/ Complaints about audit evaluations, certifications, conclusions and proposals in audit reports, notices of audit results, and notices of the State Audit Office of Vietnam’s conclusions and proposals.

3. Audited units and agencies, organizations and individuals involved in audit activities (below collectively referred to as complainants) may complain about acts of heads of audit teams, leaders of audit groups and members of audit teams and audit evaluations, certifications, conclusions and proposals in audit reports, notices of audit results, and notices of the State Audit Office of Vietnam’s conclusions and proposals when having grounds to believe that such acts are illegal and such evaluations, certifications, conclusions and proposals are unlawful and infringe upon their lawful rights and interests.

4. The statute of limitations for lodging a complaint is 30 days after the complainant receives an audit report, a notice of audit results, or a notice of the State Audit Office of Vietnam’s conclusions and proposals, or from the date the complainant realizes the act of the head of the audit team, leader of the audit group or member of the audit team. In case an agency, organization or individual involved in audit activities complains about tax liability in the notice of the State Audit Office of Vietnam’s conclusions and proposals, the statute of limitations for lodging a complaint is 30 days after receiving a notice on determination of the tax liability prescribed at Point b, Clause 2, Article 21 of Law No. 38/2019/QH14 on Tax Administration.

In case a complainant cannot exercise his/her right to complain within the specified statute of limitations due to his/her sickness, or due to a natural disaster or enemy sabotage, or because he/she is on a working trip or training course at a remote place, or for another external obstacle, the period during which the obstacle occurs shall not be included in the statute of limitations for lodging a complaint.

5. If wishing to lodge a complaint, a complainant shall file a complaint request to the State Auditor General, enclosed with additional information and evidences (if any) proving that his/her complaint is grounded and lawful. A complaint request must have the following principal contents:

a/ Date of making the complaint request;

b/ Name and address of the complainant;

c/ Complaint contents;

d/ Reasons for lodging the complaint, and the complainant’s claim for settlement;

dd/ The complainant’s signature and seal (if any).

6. Within 10 days after receiving a complaint request, the State Auditor General shall accept it for settlement and send a written notice to the complainant; in case of refusal to accept the complaint request for settlement, he/she shall reply in writing, clearly stating the reason.

7. The settlement of complaints in state audit activities is prescribed as follows:

a/ The time limit for settling a complaint is 30 days after it is accepted; for complicated cases, this time limit may be prolonged but must not exceed 45 days. In case a complainant resides in a deep-lying or remote area which is hard to be accessible, the time limit for settling a complaint is 45 days after it is accepted; for complicated cases, this time limit may be prolonged but must not exceed 60 days;

b/ In the course of complaint settlement, if seeing that the execution of part or the whole of the State Audit Office of Vietnam’s audit conclusions or proposals which is complained about is likely to cause irremediable consequences, the State Auditor General shall issue a decision suspending such execution. This decision ceases to be effective on the date the decision on settlement of the complaint in state audit activities takes legal effect;

c/ Within the time limit for complaint settlement, the State Auditor General shall issue a decision on settlement of a complaint in state audit activities.

8. A decision on settlement of a complaint in state audit activities takes legal effect on the date of its signing and shall be immediately sent to the complainant and related agencies, organizations and individuals for implementation. Such decision must have the following principal contents:

a/ Date of issuance;

b/ Names and addresses of the complainant and the complained;

c/ Complaint contents;

d/ Results of verification of complaint contents;

dd/ Dialogue results (if any);

e/ Legal grounds for complaint settlement;

g/ Conclusion on complaint contents;

h/ A content stating the retention, modification, supplementation, or cancellation of part or the whole of the audit evaluations, certifications, conclusions or proposal which is complained about; retention or termination of the complained acts; or settlement of specific issues in the complaint contents;

i/ Compensation for the complained (if any);

k/ Right to initiate a lawsuit at court.

9. In case of modifying, supplementing, or cancelling part or the whole of the audit evaluations, certifications, conclusions or proposals prescribed in Clause 8 of this Article, the State Auditor General shall, within 10 working days, adjust the audit report, and send the audit report, notice of audit results, and notice of conclusions and proposals already adjusted to the complainant, and related agencies, organizations and individuals.

10. In the course of lodging a complaint, the complainant shall still fully and promptly implement the State Audit Office of Vietnam’s audit conclusions and proposals, unless the State Auditor General issues a decision suspending the implementation of such conclusions and proposals.”.

14. To add the following Article 69a below Article 69:

“Article 69a. Initiation of lawsuits over decisions on settlement of complaints in state audit activities

1. Decisions on settlement of complaints in state audit activities over which lawsuits are initiated include:

a/ Decisions on settlement of complaints about acts of heads of audit teams, leaders of audit groups and members of audit teams;

b/ Decisions on settlement of complaints about the State Audit Office of Vietnam’s audit evaluations, certifications, conclusions and proposals in audit reports, notices of audit results, and notices of the State Audit Office of Vietnam’s conclusions and proposals.

2. Within 30 days after receiving a decision on settlement of a complaint in state audit activities, if the complainant disagrees with such decision, he/she may initiate a lawsuit over part or the whole of contents of the decision at a competent court in accordance with the Law on Administrative Procedures.

3. In case a court accepts the lawsuit petition prescribed in Clause 2 of this Article, the State Audit Office of Vietnam shall transfer the case file to the court within 10 working days after receiving the court’s request.

4. In case the court’s judgment or ruling pronounces cancellation of part or the whole of the decision on settlement of a complaint in state audit activities, the State Auditor General shall settle the case, adjust the audit report and send the audit report, notice of audit results, and notice of the conclusions and proposals already adjusted to the plaintiff within 10 working days after the court’s judgment or ruling takes legal effect.”.

15. To replace a number of phrases below:

a/ To replace the phrase “related organizations and individuals” in Clause 2, Article 8, and at Point b, Clause 2 of Article 39; Point b, Clause 2 of Article 41; and Point b, Clause 2, Article 42 with the phrase “agencies, organizations and individuals involved in audit activities”;

b/ To replace the phrase “organizations and individuals involved in audit activities” in Clause 2, Article 46 with the phrase “agencies, organizations and individuals involved in audit activities”.

16. To annul Clause 7, Article 57.

Article 2. To amend and supplement a number of articles of Law No. 93/2015/QH13 on Administrative Procedures 

1. To add the following Clause 6a below Clause 6, Article 45:

“6a. They have participated in making audit reports and issuing decisions on settlement of complaints in state audit activities over which lawsuits are initiated;”.

2. To amend and supplement Clause 1, Article 68 as follows:

“1. Suspension of execution of administrative decisions, disciplinary decisions on dismissal, decisions on handling of competition cases, or part or the whole of the State Audit Office of Vietnam’s audit conclusions and proposals.”.

3. To amend and supplement Article 69 as follows:

“Article 69. Suspension of execution of administrative decisions, disciplinary decisions on dismissal, decisions on handling of competition cases, or the State Audit Office of Vietnam’s conclusions and proposals

1. The execution of an administrative decision, a disciplinary decision on dismissal, or a decision on handling of a competition case shall be suspended if, in the course of settlement of a case, there are grounds to believe that the execution of such decision will cause irremediable serious consequences.

2. The execution of part or whole of the State Audit Office of Vietnam’s conclusions and proposals shall be suspended if, in the course of settlement of a case, there are grounds to believe that the execution of the part or whole of such conclusions and proposals will cause irremediable serious consequences.”.

4. To amend and supplement Clause 2, Article 115 as follows:

“2. Agencies, organizations and individuals may initiate lawsuits over decisions on settlement of complaints about decisions on handling of competition cases or decisions on settlement of complaints in state audit activities in case they disagree with such decisions.”.

5. To amend and supplement a number of points of Clause 2, Article 193 as follows:

a/ To amend and supplement Point dd, Clause 2 as follows:

“dd/ Accept part or the whole of the lawsuit claim, and pronounce cancellation of part or the whole of the unlawful decision on settlement of the complaint about the decision on handling of a competition case or the decision on settlement of a complaint in state audit activities; and compel the competent agency or person that has issued the decision on settlement of the complaint about the decision on handling of a competition case or the decision on settlement of a complaint in state audit activities to settle the case again in accordance with the Competition Law, Law on State Audit and other relevant laws;”;

b/ To amend and supplement Point g, Clause 2 as follows:

“g/ Compel an agency or organization to pay compensation for damage, restore the lawful rights and interests of the agency, organization or individual which are infringed upon by the unlawful administrative decision, administrative act, disciplinary decision on dismissal decision on handling of a competition case, or act of the audit team head, audit group leader or member of the audit team, or the State Audit Office of Vietnam’s unlawful conclusions and proposals;”.

6. To amend and supplement Points dd and e, Clause 1, Article 296 as follows:

“dd/ Accept part or the whole of the lawsuit claim, and pronounce cancellation of part or the whole of the decision on settlement of the complaint about the unlawful decision on handling of a competition case or the decision on settlement of a complaint in state audit activities; and compel the competent agency or person that has issued the decision on settlement of the complaint about the decision on handling of a competition case or the decision on settlement of a complaint in state audit activities to settle the case again in accordance with the Competition Law, Law on State Audit and other relevant laws;

e/ Determine the compensation liability for the cases specified at Points b, c, d and dd, Clause 1 of this Article, and compel related agencies or organizations to pay compensation or restore lawful rights and interests of organizations or individuals, public interests, interests of the State, lawful rights and interests of a third party which are infringed upon by unlawful administrative decisions, administrative acts, or disciplinary decisions on dismissal, decisions on handling of competition cases, acts of heads of audit teams, leaders of audit groups or members of audit teams, or the State Audit Office of Vietnam’s unlawful audit evaluations, certifications, conclusions and proposals; determine the compensation liability of the Supreme People’s Court whose ruling seriously violating law is annulled due to its unintentional or intentional fault and causes damage to the involved parties, or determine the liability to refund the value of assets in accordance with law;”.

7. To add the phrase “, decisions on settlement of complaints in state audit activities” below the phrase “decisions on settlement of complaints about decisions on handling of competition cases” in Clauses 8 and 9, Article 3; Clause 1, Article 7; Clause 3, Article 30; Clause 7, Article 32; Clause 4, Article 57; Point d, Clause 2, Article 73; Clauses 1 and 2, Article 78; Point b, Clause 2, Article 116; Point d, Clause 1, Article 118; Point e, Clause 1, Article 143; Clause 1, Article 193; the title and Clauses 1 and 2 of Article 235; and Points a and b, Clause 1, Article 311.

Article 3. Effect

This Law takes effect on July 1, 2020.

This Law was passed on November 26, 2019, by the XIV^th National Assembly of the Socialist Republic of Vietnam at its 8^th session.-

Chairwoman of the National Assembly
NGUYEN THI KIM NGAN