The Ho Chi Minh City People’s Committee has suggested the State Audit of Vietnam (SAV) impose sanctions on Phu My Construction Investment Corporation, the investor of a road project leading to the Phu My Bridge, as the company failed to submit VND342.7 billion (US$14.5 million) as illegal payments to the municipal coffers even though the city has asked the company to pay the amount 10 times.

Construction of the road leading to the Phu My Bridge started in 2008 and finished in 2013.

The investment in the project increased from VND1.3 trillion ($55 million) to VND2.8 trillion ($118.3 million).

In 2019, the SAV issued findings of its audit of build-transfer projects in Ho Chi Minh City in the 2014-18 period, including the road project leading to the Phu My Bridge.

The audit agency pointed out many shortcomings during the execution of the project.

In particular, the execution did not follow the design for the project, resulting in some incidents and broken items.

The city and relevant agencies failed to determine the responsibility of the investor for the slow progress of the project, which lasted 55 months.

The company also made illegal payments totaling VND355.4 billion ($15 million).

The SAV required Phu My Construction Investment Corporation to submit the amount to the city’s budget.

In 2020, the company proposed submitting the amount by installments with VND35.5 billion ($1.5 million) per quarter to fulfill its obligation by the end of 2022.

The Ho Chi Minh City Department of Finance rejected the proposal, saying it was inappropriate to the SAV’s recommendations and the municipal People’s Committee’s requirement.

Since 2020, the department alone has required the company to submit the amount 10 times.

As of June this year, Phu My Construction Investment Corporation had submitted VND12.7 billion ($536,767) and owed VND342.7 billion ($14.5 million).

The Ho Chi Minh City Taxation Department said it had applied all possible solutions but failed to recover the amount.

A working team established by the Ho Chi Minh City authorities to implement the SAV’s recommendations has proposed that the city review Phu My Construction Investment Corporation’s business registration, ecosystem, housing projects, and land lots.

The municipal Department of Transport will look over the remaining time for toll collection at the Phu My Bridge, whose investor is also Phu My Construction Investment Corporation, and report the estimated toll revenue and plans to collect the VND342.7 billion to the municipal People’s Committee.

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