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

ORDINANCE

On Sanctioning of Administrative Violations in the Field of State Audit^[1]

Pursuant to the Constitution of the Socialist Republic of Vietnam;

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

Pursuant to Law No. 81/2015/QH13 on State Audit, which had a number of articles amended and supplemented under Law No. 55/2019/QH14;

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

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Ordinance specifies acts of administrative violation; sanctioning forms and levels; remedial measures; sanctioning competence and procedures, execution of 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 means an act of misconduct committed by an organization or individual which violates the law on state audit but does not constitute a crime and is subject to administrative sanctioning under this Ordinance.

2. Sanctioning of an administrative violation in the field of state audit means that a person with sanctioning competence imposes in accordance with this Ordinance a sanction(s) and remedial measure(s) for an organization or individual that commits an act of administrative violation in the field of state audit.

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

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

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

Article 4. Subjects to be 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 which commit the acts specified in Chapter II of this Ordinance.

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

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

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

1. The 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 as 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 as specified in Article 68 of the Law on State Audit.

Article 6. Sanctioning forms and remedial measures

1. For each act of administrative violation in the field of state audit, an institutional or individual violator shall be subject to either of the following principal sanctions:

a/ Caution;

b/ Fine.

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

a/ Forcible correction of false, inaccurate or untruthful information, documents and data;

b/ Forcible refund of illicit profit amounts (if any) earned from the commission of acts of administrative violation 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 violating organizations, these persons may impose fines doubling those to be imposed on individuals.

Chapter II

ACTS OF VIOLATION, SANCTIONING FORMS AND LEVELS AND REMEDIAL MEASURES IN THE FIELD OF STATE AUDIT

Article 8. Acts of violating regulations on sending of periodical reports

1. Caution shall be imposed for an act of causing delay in sending financial statements or reports on account-finalization of revenues and expenditures of budget funds under the violators’ management for up to 15 days compared to the law-specified time limit.

2. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for an act of causing delay in sending financial statements or reports on account-finalization of revenues and expenditures of budget funds under the violators’ management for between over 15 days and 30 days compared to the law-specified time limit.

3. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed for an act of causing delay in sending financial statements or reports on account-finalization of revenues and expenditures of budget funds under the violators’ management for between over 30 days and 60 days compared to the law-specified time limit.

4. A fine of between VND 20,000,000 and VND 30,000,000 shall be imposed for an act of causing delay in sending financial statements or reports on account-finalization of revenues and expenditures of budget funds under the violators’ management for 60 days or more compared to the law-specified time limit.

5. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed for an act of refusal to send financial statements or reports on account-finalization of revenues and expenditures of budget funds under the violators’ management at the request of the State Audit Office of Vietnam.

Article 9. Acts of violating regulations on provision of information and documents necessary for an audit

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

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

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

b/ Providing information and documents at the request of an audit team, audit group or a state auditor but such information and documents are inaccurate or insufficient.

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

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

b/ Providing information and documents at the request of an audit team, audit group or a state auditor but such information and documents are untruthful or unobjective.

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

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

Article 10. Acts of violating regulations on reply and explanation relating to audit contents

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

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

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

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

5. Remedial measure: Forcible correction of false or inaccurate information, documents and data, for the act specified in Clause 2 of this Article.

Article 11. Acts of failure to sign audit records or to abide by audit decisions

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

2. A fine of between VND 20,000,000 and VND 40,000,000 shall be imposed for an act of failure to abide by audit decisions.

Article 12. Acts of buying off or offering bribes to heads of audit teams, deputy heads of audit teams, heads of audit groups or members of audit teams; or acts of 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 either of the following acts:

1. Buying off or offering bribes in the form of money, assets or material benefits with a value of under VND 2,000,000 to the head of an audit team, a deputy head of an audit team, the head of an audit group or a member of an audit team;

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

Article 13. Acts of covering up violations of the law on public finance and public assets or illegally intervening in audit activities and results

1. A fine of between VND 20,000,000 and VND 30,000,000 shall be imposed for an 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 an act of illegally intervening in audit activities or results of the State Audit Office of Vietnam, an audit team, audit group or a member of an audit team.

3. Remedial measure: Forcible refund of illicit profit amounts (if any) earned from the commission of administrative violations in the field of state audit as specified in Clauses 1 and 2 of this Article.

Article 14. Acts of violating regulations on the 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 an act of causing delay in sending paper reports on results of the implementation of audit conclusions and proposals to the State Audit Office of Vietnam for up to 30 days compared to the time limit set by the State Audit Office of Vietnam in the audit report.

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

a/ Inadequately implementing one of the proposals of the State Audit Office of Vietnam while having conditions for implementation;

b/ Causing delay in sending paper reports on results of the implementation of audit conclusions and proposals to the State Audit Office of Vietnam for between over 30 days and 60 days compared to the time limit set by the State Audit Office of Vietnam in the audit report.

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

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

b/ Refusing to send, or causing delay in sending, paper reports on results of the implementation of audit conclusions and proposals to the State Audit Office of Vietnam for over 60 days compared to the time limit set by the State Audit Office of Vietnam in the audit report.

4. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed for an act of failure to implement audit conclusions and proposals of the State Audit Office of Vietnam while having conditions for implementation.

5. Remedial measures:

a/ Forcible correction of untruthful information, for the act specified at Point a, Clause 3 of this Article.

b/ Forcible refund of illicit profit amounts (if any) earned from the commission of acts of administrative violation in the field of state audit as specified at Point a, Clause 2, and Clause 4, of this Article.

Chapter III

COMPETENCE TO MAKE MINUTES, COMPETENCE TO SANCTION AND APPLY REMEDIAL MEASURES IN THE FIELD OF STATE AUDIT

Article 15. Competence to make minutes of administrative violation in the field of state audit

 1. Persons competent to make minutes of administrative violation in the field of state audit include:

a/ State auditors;

b/ Heads of audit groups;

c/ Deputy heads of audit teams;

d/ Heads of audit teams;

dd/ Chief auditors.

2. The making of minutes of administrative violation must comply with Article 58 of the Law on Handling of Administrative Violations and relevant regulations.

Article 16. Competence to sanction and apply remedial measures

1. Heads of audit teams may:

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 may:

a/ Impose caution;

b/ Impose a fine of up to the maximum fine applicable in the field of state audit;

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

3. The head of a state audit team may exercise the sanctioning competence specified in Clause 1 of this Article for acts of administrative violation falling within the scope and contents 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 decisions on sanctioning of administrative violations in the field of state audit must comply with Sections 1 and 2, Chapter III, Part Two of the Law on Handling of Administrative Violations.

2. In case the sanctioned individual or organization lodges a complaint about, or initiates a lawsuit over, a decision on sanctioning of administrative violations in the field of state audit, he/she/it shall still abide by such decision, except the case specified in Clause 3, Article 15 of the Law on Handling of Administrative Violations. The lodging and settlement of complaints about administrative sanctioning decisions must comply with Article 69 of the Law on State Audit regarding lodging and settlement of complaints in state audit activities and relevant regulations; the right to initiate lawsuits and settlement of lawsuit petitions must 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 regulations.

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

Chief auditors may issue decisions on enforcement of administrative sanctioning decisions.

Article 19. Execution of decisions on enforcement of administrative sanctioning decisions

1. The State Audit Office of Vietnam shall assume the prime responsibility for the enforcement of decisions on sanctioning of administrative violations in the field of state audit; the People’s Police force, State Treasury offices, credit institutions and foreign bank branches where individuals or organizations subject to the enforcement open their accounts shall coordinate with one another in implementation thereof in accordance with the law on handling of administrative violations.

2. The execution of decisions on enforcement of administrative sanctioning 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 on May 1, 2023.

Article 21. Responsibility for organization of implementation

The State Auditor-General shall organize the implementation of this Ordinance; and review existing legal documents for amendment or supplementation thereof, or promulgate new legal documents according to its competence, ensuring that the amended/supplemented documents or new documents take effect on the effective date of this Ordinance.-

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

On behalf of the National Assembly Standing Committee
Chairman of the National Assembly
VUONG DINH HUE