The Government Inspectorate has detected a range of financial violations at Vietnam Railways, causing a total loss of VND130 billion (USD6.2 million) to the state budget.

After a two-year inspection, the Government Inspectorate on September 1 announced the violations related to asset and capital management and use at Vietnam Railways (VNR).

Bidding violations

VNR overspent VND29 billion for the three equipment purchase projects which had a total approved capital of VND408 billion (USD19.4 million).

The tender for 300 new carriages saw VNR select a Chinese contractor that bid USD14.56 million, although the project was not in the firm's approved bidding plan.

Between 2010 and 2013, VNR sold old engines and carriages which were bought a total price of VND106 billion to its affiliates for only VND21 billion.

This is illegal because, in this case, VNR had to hold auctions to choose the buyers at the best price. More seriously, after that, VNR's affiliates sold back this rolling stock and made profits.

In many cases, VNR did not publically advertise its tendering of projects as regulated and for some projects, meanwhile it selected contractors after ignoring bidding results.

Wasteful overseas trips

During the 2010-2013 period, VNR spent VND14 billion for 188 overseas trips by delegations. Among those, 23 groups went abroad without any clear or appropriate reason.

Checking papers from five groups, the Government Inspectorate found that their overseas trips were carried out through tour contracts with Vietnamese travel firms.

Sluggish projects

Up to 24 of 31 projects of VNR have faced the sluggish implementation for many years. The upgrade of Hanoi-Lang Son railway is 10 years behind the schedule, the K1 and K2 tie replacement project has been stagnant for seven years. Meanwhile, the project to upgrade bridges on Hanoi-HCM City railway route is three years behind schedule.

The slow place of two projects to modernise railway signal networks has seen costs rise by VND37 billion.

dtinews