Recently, the media has continuously reported on the news of the Deputy Director of Ho Chi Minh City Eye Hospital. Specifically, Mr. Nguyen Tri Dung violated regulations on bidding, causing serious consequences. In addition to Mr. Dung, there are 3 other defendants who are considered accomplices of the case. Currently, the investigation agency is still investigating the case. However, if it is determined that Mr. Dung is guilty, it is highly likely that Mr. Dung will be held criminally responsible. Specifically on the crime of violating regulations on bidding, causing serious consequences. So many people ask the following question: How can a violation of bidding regulations be penalized? And to make this more clear, today, LSX Lawfirm will give you an article about “Violations of Vietnam’s bidding law can be penalized like?“, as follows:
Legal grounds
- Penal Code 2015 Amendments and Supplements 2017
What is a tender?
A tender is an offer of a price set by an individual or business for a product or service or a demand that something is done. Bidding is used to determine the cost or value of a service or product.
In case of contractor selection
Bidding documents and dossiers of requirements of a bidding package may only be released for contractor selection when the following conditions are fully satisfied:
The approved contractor selection plan;
Bidding documents; approved dossiers of requirements include requirements on bidding procedures; Tender data sheet; evaluation criteria; bid form; bid volume table; requirements on progress, technique, and quality; general and specific conditions of the contract; sample contract documents and other necessary contents;
Tender notice; notices of solicitation of offers or short lists are posted in accordance with this Law;
The capital source for the bidding package shall be arranged according to the progress of the bidding package;
Contents, list of goods; services and estimates approved by an authorized person in the case of regular procurement; centralized shopping;
Ensure handover of the construction site according to the schedule of implementation of the bidding package.
Case of investor selection
Bidding documents; The project’s request dossiers may only be released for investor selection when the following conditions are fully satisfied:
Projects on the list of projects issued by the ministry; ministerial-level agencies; government agencies; Provincial People’s Committees; announced by the central-affiliated city in accordance with the law or the project proposed by the investor;
The approved investor selection plan;
Bidding documents and dossiers of requirements are approved;
Bidding notices or short lists shall be posted in accordance with this Law
How can a violation of bidding regulations be penalized?
Acts of the accused according to the investigation documents
4 defendants, including Nguyen Minh Khai – Director of Ho Chi Minh City Eye Hospital; Vo Thi Chinh Nga – Deputy Director of Ho Chi Minh City Eye Hospital; Phi Duy Tien – Former Deputy Director of Ho Chi Minh City Eye Hospital; Nguyen Quoc Toan – former Head of Surgery Department of Anesthesia and Resuscitation – participated in directing and implementing the bidding package “Purchase of monofocal artificial lenses in 2018.
When conducting procurement bidding, some leaders of the Ho Chi Minh City Eye Hospital violated the law on bidding so that the same equivalent artificial lens products would meet the technical requirements and have the same quality. lowest bid price, buy glass products with high bid price, including CT Asphina 509M artificial lens for 3.1 million VND/piece; CT Asphina 509MP artificial lens with the price of 3.6 million VND/piece; CT Lucia 601PY artificial lens for 3.4 million VND/piece; CT Lucia 201P artificial lens for nearly 3 million VND/piece.
The fact that Ho Chi Minh City Eye Hospital chose a higher-priced lens item to win the contract against the regulations resulted in the health insurance and the patient having to pay the difference, causing a total loss of more than 14.2 billion VND. copper. In which, the damage to the Health Insurance Fund is more than 5 billion dongs, the patient with health insurance is more than 7 billion dongs, and the uninsured patient is nearly 2 billion dongs.
The acts of the accused may be prosecuted for violating the regulations on bidding, causing serious consequences. Serious consequences are reflected in the amount of damage mentioned above then.
How can the accused be punished?
Crimes of violating regulations on bidding causing serious consequences are specified:
Frame 1
- Those who commit one of the following acts, causing damage ranging from VND 100,000,000 to under VND 300,000,000 or under VND 100,000,000 but have been disciplined or administratively sanctioned for administrative violations If they continue to commit this violation, they shall be sentenced to non-custodial reform for up to 03 years or a prison term of between 01 and 05 years:
a) Illegal interference in bidding activities;
b) Tender notice;
c) Fraud in bidding;
d) Obstructing bidding activities;
dd) Violating the law on ensuring fairness and transparency in bidding activities;
e) Organize contractor selection when the source of capital for the bidding package has not been determined, leading to arrears of the contractor’s capital;
g) Unauthorized contractor transfer
Frame 2
- Committing the crime in one of the following circumstances, the offenders shall be sentenced to between 3 and 12 years of imprisonment:
a) For self-interest;
b) Organized;
c) Abusing positions and powers;
d) Using sophisticated and cunning tricks;
dd) Causing damage of between VND 300,000,000 and under VND 1,000,000,000 then.
Frame 3
Committing the crime and causing damage of VND 1,000,000,000 or more, the offenders shall be sentenced to between 10 and 20 years of imprisonment then.
Frame 4
- The offenders may also be banned from holding certain posts or doing certain jobs for 1 to 5 years or having part or all of their property confiscated.
The determination of the accused’s crimes also depends on the investigation process. In particular, the specific level of judgment depends on the trial Court. However, through the prescribed levels of punishment, it can be seen that there are aggravating factors. For example, causing damage with an amount of over 1 billion Vietnam dong. Or commit an organized crime, and abuse their positions and powers to violate bidding activities.
Specifically, in this case, let’s wait for the conclusion of the authorities!
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Related article
- Can Vietnamese business households participate in bidding activities?
- Is it possible to join an expert group with a bidding certificate in accordance with Vietnamese law?
Related questions
Bidding is often understood as collusion, collusion, and arrangement between the parties participating in the bidding in order for one party to win the bid, losing the fair competition and transparency of the bidding then.
The branch cannot participate in the bid as an independent contractor; in case if the legal representative of the Company authorizes the head of the branch (both signature and seal), the authorized person can use the signature and seal of the branch to participate in the bid; In this case, the Company is still the unit standing as a legal entity participating in the bid, not a branch.
In this case, the joint venture contract with the main contractor may perform separate bid security or agree that one member is responsible for performing the bid security for such members and the remaining members. in the consortium. And how to handle it depends on the agreement between the signatories.
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