Ordinance on Handling of Administrative Violations in State Audit, Ordiance No. 04/2023/UBTVQH15

ORDINANCE

On Handling of Administrative Violations in State Audit

Pursuant to the Constitution of the Socialist Republic of Vietnam;

Pursuant to Law on Handling of Administrative Violations No. 15/2012/QH13, which was amended and supplemented under Law No. 54/2014/QH14, Law No. 18/2017/QH14 and Law No. 67/2020/QH14;

Pursuant to Law on State Audit No. 81/2015/QH13, which was amended and supplemented under Law No. 55/2019/QH14;

The National Assembly Standing Committee promulgates the Ordinance on Handling of Administrative Violations in State Audit.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Ordinance specifies administrative violations; sanctioning forms and levels; remedial measures; sanctioning competence and procedures, execution of administrative sanctioning decisions, and enforcement of administrative sanctioning decisions in the field of state audit.

Article 2. Interpretation of terms

In this Ordinance, the terms below are construed as follows:

1. Act of administrative violation in the field of state audit is a faulty act which is committed by an individual or organization in violation of the state audit law but does not constitute a crime and, therefore, must be administratively sanctioned in accordance with this Ordinance.

2. Sanctioning of an administrative violation in the field of state audit means that a person with sanctioning competence imposes a sanction(s) on and applies a remedial measure(s) to an administrative violator in the field of state audit in accordance with this Ordinance.

Article 3. Application of regulations to administrative violations in the field of state audit

1. The handling of administrative violations in the field of state audit must comply with the Law on Handling of Administrative Violations, this Ordinance and relevant laws.

2. Agencies, organizations and individuals committing acts of administrative violations in the field of state audit, in addition to being sanctioned in accordance with this Ordinance, shall fulfill obligations and responsibilities in accordance with the Law on State Audit, the Law on the State Budget and relevant laws.

Article 4. Subjects to be administratively sanctioned

1. The individuals specified at Points a and c Clause 1 Article 5 of the Law on Handling of Administrative Violations who commit the acts specified in Chapter II of this Ordinance.

2. The organizations specified at Points b and c Clause 1 Article 5 of the Law on Handling of Administrative Violations that commit the acts specified in Chapter II of this Ordinance.

3. In case cadres, civil servants, public employees, servicemen of the People’s Army and People’s Public Security forces, or persons engaged in cypher work commit acts of administrative violation in the field of state audit while performing official duties or tasks and such acts pertain to their official duties or tasks, they will not be sanctioned in accordance with the law on handling of administrative violations but shall be handled in accordance with the law on cadres, civil servants and public employees and relevant laws.

State agencies that commit acts of violation while pertaining to their tasks will not be sanctioned in accordance with the law on handling of administrative violations but shall be handled in accordance with relevant laws.

Article 5. Acts of administrative violations in the field of state audit to be sanctioned

1. Prohibited acts specified in Clauses 2 and 3 Article 8 of the Law on State Audit.

2. Acts of violating regulations on obligations and responsibilities of audited entities specified in Articles 57 and 58 of the Law on State Audit.

3. Acts of violating regulations on responsibilities of agencies, organizations and individuals involved in state audit activities specified in Article 68 of the Law on State Audit.

Article 6. Sanctioning forms and remedial measures

1. For each administrative violation in the field of state audit, an institutional or individual violator shall be imposed with one of the following principal sanctions:

a) Caution;

b) Fine.

2. Remedial measures to be imposed in handling of administrative violations in the field of state audit include:

a) Forcible correction of untruthful, false or incorrect information, documents or data;

b) Forcible refund of illicit profits (if any) earned through the commission of administrative violations in the field of state audit.

Article 7. Fine levels and competence to impose fines

1. The maximum fine to be imposed for an individual’s act of administrative violation in the field of state audit is VND 50,000,000. The maximum fine to be imposed for an organization’s act of administrative violation in the field of state audit is VND 100,000,000.

2. The fine levels specified in Chapter II of this Ordinance are those applicable to individuals’ acts of administrative violation. For the same violation act, the fine level to be imposed on an organization is twice that to be imposed on an individual.

3. The competence to impose fines of the persons specified in Article 16 of this Ordinance is that applicable to an individual’s act of administrative violation in the field of state audit; for organizations, these persons may impose fines doubling those to be imposed on individuals.

Chapter II

ACTS OF VIOLATION, SANCTIONS AND REMEDIAL MEASURES IN THE FIELD OF STATE AUDIT

Article 8. The acts of violating regulations on regular reporting

1. A caution shall be imposed for the act of delay in sending financial statements, statements of final accounts of budget revenues and expenditures under the management up to 15 days compared to the prescribed time limit.

2. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for the act of delay in sending financial statements, statements of final accounts of budget revenues and expenditures under the management from more than 15 days to 30 days compared to the prescribed time limit.

3. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed for the act of delay in sending financial statements, statements of final accounts of budget revenues and expenditures under the management from more than 30 days to 60 days compared to the prescribed time limit.

4. A fine of between VND 20,000,000 and VND 30,000,000 shall be imposed for the act of delay in sending financial statements, statements of final accounts of budget revenues and expenditures under the management from more than 60 days compared to the prescribed time limit.

5. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed for the act of refusal to send financial statements, statements of final accounts of budget revenues and expenditures under the management at the request of the State Audit Office of Vietnam.

Article 9. The acts of violating regulations on providing necessary information and documents for an audit

1. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for the act of failure to timely provide information and documents at the request of the audit team, audit group or state auditor.

2. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed for any of the following acts of violation:

a) Delaying the provision of information and documents at the request of the audit team, audit group or state auditor;

b) Providing inaccurate and incomplete information and documents at the request of the audit team, audit group or state auditor.

3. A fine of between VND 20,000,000 and VND 30,000,000 shall be imposed for any of the following acts of violation:

a) Failing to provide necessary information and documents for an audit at the request of the audit team, audit group or state auditor;

b) Providing untruthful and unobjective information and documents at the request of the audit team, audit group or state auditor.

4. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed for the act of refusal to provide information and documents at the request of the audit team, audit group or state auditor.

5. Remedial measures: Forcible correction of false, inaccurate or untruthful information, documents, data, for the acts of violation specified at Point b Clause 2 and Point b Clause 3 of this Article.

Article 10. The acts of violating regulations on response and explanation relating to audit contents

1. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for the act of failure to timely give responses and explanations at the request of the audit team, audit group or state auditor.

2. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed for the act of giving inaccurate and insufficient responses and explanations at the request of the audit team, audit group or state auditor.

3. A fine of between VND 20,000,000 and VND 30,000,000 shall be imposed for the act of failure to give responses and explanations at the request of the audit team, audit group or state auditor.

4. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed for the act of refusal to give responses and explanations at the request of the audit team, audit group or state auditor.

5. Remedial measures: Forcible correction of false or inaccurate information, documents, or data, for the acts of violation specified in Clause 2 of this Article.

Article 11. The acts of failure to sign audit records, or abide by audit decisions

1. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed for the act of failing to sign audit records according to the State Auditor General’s regulations.

2. A fine of between VND 20,000,000 and VND 40,000,000 for the acts of failing to abide by audit decisions.

Article 12. The acts of buying off, offering bribes to heads of audit teams, leaders of audit groups, members of audit teams; or obstructing the work of the State Audit Office of Vietnam

A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed for any of the following acts of violation:

1. Buying off, offering bribes, including money, properties or material interests with a value of less than VND 2,000,000 to heads of audit teams, leaders of audit groups, members of audit teams;

2. Obstructing the work of the State Audit Office of Vietnam and state auditors.

Article 13. The acts of covering up violations of the law on public finance and public assets, or unlawfully interfering in audit activities or results

1. A fine of between VND 20,000,000 and VND 30,000,000 shall be imposed for the act of covering up violations of the law on public finance and public assets.

2. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed for the act of unlawfully interfering in audit activities or results of the State Audit Office of Vietnam, audit teams, audit groups or members of audit teams.

3. Remedial measures: Forcible refund of illicit profits (if any) earned through the commission of administrative violations in the field of state audit specified in Clauses 1 and 2 of this Article.

Article 14. The acts of violating regulations on implementation of audit conclusions and proposals of the State Audit Office of Vietnam

1. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for the act of delay in sending written reports on results of the implementation of audit conclusions and proposals to the State Audit Office of Vietnam up to 30 days compared to the time limit required by the State Audit Office of Vietnam in the audit reports.

2. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed for any of the following acts of violation:

a) Unfully implementing one of the proposals of the State Audit Office of Vietnam when fully meeting conditions for implementation;

b) Delaying in sending written reports on results of the implementation of audit conclusions and proposals to the State Audit Office of Vietnam from more than 30 days to 60 days compared to the time limit required by the State Audit Office of Vietnam in the audit reports.

3. A fine of between VND 20,000,000 and VND 30,000,000 shall be imposed for any of the following acts of violation:

a) Untruthfully reporting results of the implementation of audit conclusions and proposals of the State Audit Office of Vietnam;

b) Refusing or delaying in sending written reports on results of the implementation of audit conclusions and proposals to the State Audit Office of Vietnam from more than 60 days compared to the time limit required by the State Audit Office of Vietnam in the audit reports.

4. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed for the act of failing to implement audit conclusions and proposals of the State Audit Office of Vietnam when fully meeting conditions for implementation.

5. Remedial measures:

a) Forcible correction of untruthful information, for the acts of violation specified at Point a Clause 3 of this Article.

b) Forcible refund of illicit profits (if any) earned through the commission of administrative violations in the field of state audit specified at Point a Clause 2 and Clause 4 of this Article.

Chapter III

COMPETENCE TO MAKE RECORDS, SANCTIONING COMPETENCE AND APPLICATION OF REMEDIAL MEASURES IN THE FIELD OF STATE AUDIT

Article 15. Competence to make records of administrative violations in the field of state audit

 1. Persons competent to make records of administrative violations in the field of state audit include:

a) State auditors;

b) Leaders of audit groups;

c) Deputy head of audit teams;

d) Heads of audit teams;

dd) Chief auditors.

2. The making of records of administrative violations shall comply with Article 58 of the Law on Handling of Administrative Violations and relevant laws.

Article 16. Sanctioning competence and application of remedial measures

1. Heads of audit teams are competent to:

a) Impose caution;

b) Impose a fine of up to VND 30,000,000;

c) Apply the remedial measures specified in Clause 2 Article 6 of this Ordinance.

2. Chief auditors are competent to

a) Impose caution;

b) Impose a fine of up to the maximum fine level applicable to the field of state audit;

c) Apply the remedial measures specified in Clause 2 Article 6 of this Ordinance.

3. Heads of state audit teams are competent to impose a fine specified in Clause 1 of this Article for the act of administrative violations belonging to the scope or content of an audit within the audit period in accordance with the Law on State Audit.

Chapter IV

SANCTIONING PROCEDURES, EXECUTION OF SANCTIONING DECISIONS AND ENFORCEMENT OF SANCTIONING DECISIONS

Article 17. Sanctioning procedures and execution of administrative sanctioning decisions

1. Sanctioning procedures and execution of sanctioning decisions in the field of state audit must comply with provisions of Sections 1 and 2 Chapter III Part two of the Law on Handling of Administrative Violations.

2. Sanctioned individuals or organizations that lodge complaints or initiate lawsuits about their sanctioning decisions shall still abide by such decisions, except the case specified in Clause 3 Article 15 of the Law on Handling of Administrative Violations. Complaints and settlement of complaints relating to administrative sanctioning decisions shall comply with Article 69 of the Law on State Audit regarding complaints and settlement of complaints in state audit activities, and relevant laws. The right to initiate a lawsuit and settlement of a lawsuit petition shall comply with Article 69a of the Law on State Audit regarding initiation of lawsuits over decisions on settlement of complaints in state audit activities, and relevant laws.

Article 18. Competence to issue decisions on enforcement of administrative sanctioning decisions

Chief auditors are competent to issue decisions on enforcement of administrative sanctioning decisions.

Article 19. Execution of enforcement decisions

1. The State Audit Office of Vietnam shall preside over the enforcement of administrative sanctioning decisions in the field of state audit. People’s Public Security forces, State Treasury, credit institutions and foreign bank branches where individuals and organizations subject to enforcement of sanctioning decisions open their accounts shall coordinate in implementing in accordance with the law on handling of administrative violations.

2. The execution of enforcement decisions must comply with Article 88 of the Law on Handling of Administrative Violations.

Chapter V

IMPLEMENTATION PROVISIONS

Article 20. Effect

This Ordinance takes effect from May 1, 2023.

Article 21. Implementation responsibility

The State Auditor General shall organize the implementation of this Ordinance; review for amendment, supplementation, or issuance of a new legal document under its competence, which has the same effective date as this Ordinance./.

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This Ordinance was adopted on February 28, 2023, by the XV^th National Assembly Standing Committee of the Socialist Republic of Vietnam at its 20^th session.