Luận văn thạc sĩ UEB enhancing the role of inspection agencies in prevention and anti corruption from reality in hai duong province

anti-2 Interviews some related objects, consist of 3 Chairman of District Pcople Committee; 10 -13 staff and inspectors; 1-2 enterprises Inspection Objects, one lavvyer vvith contents re

UPPSALA *** VNUUEfB

MASTER THESIS OF MPPM

ENHANCING THE ROLE OF INSPECTION AGENCIES

IN PREVENTION AND ANTI-CORRUPTION FROM

REALITY IN HAI DƯONG PROVINCE

Hanoi, lanuary - 2015

I made this thesis in the Master's prograin management from the University ofEconomics - Hanoi National University and the University of Uppsala in Svveden 11conlìrms that the thesis cannot perform well without the guidance and support of dedicatedinstructors: Prof Dr Lars - Tosten Eriksson, University of Uppsala - Sweden and Dr.Nguyen Khao Mung, director of Institute of leadership and management (LM1), Chairman

of the Board of Consulting and Development management JSC (MCAD) I sincerely thank

to Prof Dr Lars - Tosten Eriksson and Dr Nguyen Khac Hung who has supported meduring this thesis research

Sincerely thank Protèssor, Associate Professor, PhD of the University of Uppsala Sweden and the Professor, Associate Protcssor, PhD of íhe Institute of Hinance andAdministratiơn Institute, Academy of Social Sciences, Economic University, íianoi NationalUniversity who enthusiastically communicate the importance of scientiíìc knovvledge andresearch experience in the master's program manager for my company

-Thanks comrades and leaders of Inspector Hai Duong, chief inspector of Gia LocDistrict, Tu Ky District, Kim Thanh District, Thanh Ha District, Ninh Giang District ChiLinh Tovvn, Hai Duong City, thanks People’s Committee of Coinmunc, l u Ky District,Tran Phu Ward People's Committee of Mai Duong; l.cadcrs and olíìcials of the Departmcnts

of Finance, Construction, Transportation, Natural Resources and Environment of HaiDuong Province and Mr Chairman Ninh Giang District, Nam Sach District, Chainnan ofHai Duong City cooperation to makc it I íầcilitate research, completed data collection tobuild of this thesis

Sincerely yours!

1-Thesis title: ENHANCING THE ROLE OF INSPECTION AGENCIES IN

PREVENTION AND ANTI-CORRƯPTION FROM REALITY IN HAI DUONG

PROVINCE

2-LeveI: Graduation thesis of Public Management Master Program

3- Author: Nguyen Quoc Khanh

4- Instructors:

Vietnaniese: Dr Nguyen Khac Hung

Director of Institute of Leadership and Management (LMI); Board Chairman of

Management Consultancy and Development JSC (MCaD)

Sweden: Prof I)r Lars - Tosten Eriksson

Uppsala University - Svveden

5- Thesis presentation date: 05-12-2014

6- Objectives: Corruption situation in Vietnam is novv very serious, have become thenational evils, corruption is presented very where and any sector, with the tricks is more andmore sophisticated, levels is largcr and larger in scale

- Inspection Agency is a permanent body against corruption but the anti-corruption inspection agency is not so effective: Study objectives:

The rcsearch is to discover some hidden problems and reasons that limited role of

tho State inspcction organi/ations in detecting and handling corruption, proposing

solutions to enhance the role of thc State Inspection organi/ations and anti-corruption

measures

7- Methodology:

7.1 Overview Research Methodology: Includes the laws, thc legal documents ofthc State

7.2 Data collection methodology:

a Secondary intbrmation and data collection method: Research documents and

reports, conclusions of Hai Duong Province inspection

b Priinary infonnation and data collection methodology:

- Survey by questionnaire vvith 55 persons who work for provincial and district anddepartmcnts inspection agencies in Hai Duong province, to collect

reality and role of the current inspection agencics in the prevention and anti-corruption, what

to do to strengthen the role of inspection agencies in the prevention and anti-corruption?Which íactors affecting the quality of inspection vvork in prevention and anti-corruption?

- Interviews some related obịects, consist of 3 Chairman of District People

Committee; 10-13 inspectors; 1-2 enterprises (Inspection Objects), one lawyer

7 3 Data analysis methodology:

Based on the results of thc inspection data on a number of econoinic - social sectors,analysis to assess the eíYectiveness of anti-corruption inspection activities, \vhich tound therole of inspection agencies in prevention and anti-corruption vvork; Analyze the role of

inspection in the State management, thc dircction andcheck of the superior for knver levels;

- Expert Methods: During iinplementing the thesis, I ahvays get the support of expertsinside and outside of inspection industrv and of the instructors at the University of Uppsala -Svveden and Vietnam

8 Results & conclusions:

8.1 Research results:

a) The role o f inspection in accordance with the Inspection Law in 2010.

+ In term of the organi/.ation: Inspection Agency is an agency under the administrativeagency ofthc same level

- Pcríbrm inspection function as planned Must be approved hy head of administrative agency at the same level

- Do not have thc pcnvcr to investigate, propose to prosecute and apply ineasures to prevent (Put in temporary detention, take into custody)

b) Realitv o f anti-corruption inspection in Hai Duong Province, in the fields:

- Inspection in the íìeld of budget managemcnl

- Inspection in the íìcld of taxation

- Inspection in the íìcld oí'basic construction investment

With the ĩramevvork of this thesis cannot be deeply and comprehensively analy/cd togive thc solutions fully and eíYectively With the ability and expericnce in thc inspectionindustry, vve íìnd that the above iìndings are completely correct, contribute to the inspectionindustry, and competent governmcnt agcncies to see the cause and role of inspection islimited in the prevention and anti-corruption in the past year it bluntly, therelbre can notprevent corruption

Whcn having conditions to continue further research, I hope to focus 1'urthcr on thecauses and consequences, motivations oí' corruption acts, the internal and extemal factors inthe impact of this phenomenon, the with experience in the country as vvell asintcrnationally to be able to make the more feasible solutions to build inspection sectorsvvith hiah position and role in the prevention and anti-corruption in the province from now

to the year of 2030

SUMMARY OF MASTER THESIS

ABBREVIATIONS

IN TR O D U C TIO N !

1 The reason for selecting the topic 1

2 The Research O bjectives 3

3 Research Questions 3

4 Research M ethodology: 3

5 The limitations: 4

6 Thesis Layout: This thesis consists o f an introduction and three chapters: 5

CHAPTER I: THEORIES OF INSPECTION AND ANTI-CORRUPTION; RHGULATION ON INSPECTION AND A N TI-C O R R U PTIO N 6

1.1 THEOR1ES OF INSPECTION AND A N TI-C O R R U PT IO N 6

1.1.1 The concept o f corruption: 6

1.1.2 The basic characteristics o f corruption 9

1.1.3 Corruption identiíìcation 11

1.2 REGULATIONS ON INSPECTION, PREVENTION AND ANT1-C O R R U PTIO N 12

1.2.1 Prevention and anti-corruption Law in 2005 regulated corruption is an act o f the people with power, corruption behavior is constituted by three íầctors: the behavior o f power person; Took advantage o f their positions and povvers; for the purposes o f self-interest 12

1.2.2 Regulations o f the ỉnspection L aw 17

1.3 FUNCTIONS AND DUTIES AND POWERS OF INSPECTION SECTOR IN PREVENTION AND ANTI-CORRUPTION (within the framework o f this thesis reíers only to administrative level inspection from government inspector to district level inspector) 21

1.3.1 The Government Inspectorate: 21

1.3.2 Provincial Inspectorate 24

C H A PTER II: REAL SITUATION OF INSPECTION ACTIVITIES IN PREVENTION AND ANTI-CORRUPTION IN HAI DUONG PROVINCE 28 2.1 Summ

ary characteristics and social-economic situation in Hai Duong

province: 28

2.2 The resuỉts o f anti-corruption inspection activities in a number o f social and economic sectors o f Hai Duong province Inspectorate: 29

2.2.1 Anti-corruption inspection in the íìeld o f budget management at the level o f comm unes, districts, cities and towns 29

2.2.2 Anti-corruption Inspectorate in the tìeld o f Land Management; 35

2.2.3 Anti-corruption Inspection in the ĩield o f tax management for enterprises 41

2.2.4 Anti-corruption inspection in the íìeld o f basic construction investment m anagem ent 45

2.3 The cause o f violations that leads to corruption exists 53

2.3.1 Causes and objective conditions 53

2.3.2 Causes and subjective conditions 54

2.4 Some basic elements reduce impact o f anti-corruption inspection activities 56

2.5 Some o f the changes in perspective, perceptions,assessment o f individuals and organizations from etTectiveness o f inspection: 58

CHAPTER III: CONCLUSIONS AND RECOMENDATIONS 63

3.1 C o n c lu sio n s 63

3.2 Recommendations: Some solutions for improving the role o f inspection activities to prevent corruption in Hai Duong province in the period o t'2015 -2030 63

REFERENCES

APPENDIX

PCTN : Anti-Corruption

1 The reason for selecting the topic

Corruption is the behavior of person vvith positions and povvers, took advantage oi' his position and povver for the purpose of proíìt Corruption is a social evil associated with

the communication process and use the povvcr of the agencies in political system of eachcountry As obstacles to the implementation of policies and laws of the State, resistance tosocial development, distorts economic relations, eroding ethical values Corruption isessentially a combination of tvvo factors: povvcr and self-interested The hanníul eíTects ofcorruption behavior is very large directly harm to the property of thc State, organi/ations andindividuals in society, constraining economic

an d so c ia l d e v e lo p m e n t of th e cou n try a íĩe c tin g r e v o lu tio n m o ra lity , p u b lic S erviceculture of oíĩicials, undermining the people’s trust vvith the State

In recent years, our country has made signiíìcant achievements in the constanteconomic and social innovation, social security is maintained, people's living standards ismorc and more improved Hovvever, vvc are still íầcing mạịor challenges and risks.Corruption situation has been very complicated in many areas and tended to increase inscale, increasingly serious nature, rcílectcd in the number of State’s assets are appropriated

or loss; violators of thc law, including many oHìccrs, puhlic oỉTicials even including somcỉeađers, senior managers who liave behaviors of corruption, appropriation of State assets.Rcsolution o f the 9lh Party’ Congress has essessed: “corruption and degradationol'ideology politics, ethics and liíestyle in a not-small part of olTcials and Party mcmhcrsare very serious Corruption lasted for a long tiine in apparatus of the political system andthc economic organi/ations is a major risk threatening the survival of the regime”

Prevention and anti-corruption was paid attention hy the Party and State, thereíore,

it has achieved certain results But vve must írankly admit that the prevention, detection andhandling oí' corruption for the last time has still limited compared to the requirements andexpectations of the people Períecting the institution of prevention and anti-corruption isstill slow; propagation and disscmination, legal education has not met the requirements;officials and civil

to protect and revvard whistleblowers Responsibility, leadership abilities, íìghting force ofsome committees, pioneer, exemplary of part of officials and Party members are not high.Many prevention and anti-corruption ineasures are in term of formalism Organization,operation capacity of organizations and olììcials in charge of prevention and anti-corruption

is still inadequate The coordination relationship among the litigation implementationagencies and betvveen the litigation implementation agencies vvith the inspection and auditagencies in the detection and treatment of cases, corruption cases sometimes are not close.Corruption detection is still vveak, some corruption cases are detected and processedthrough the operation of inspection and audit agencies is still less Corruption asset yield isvery lovv Corruption remains seriously in many sectors and levels, many areas, especially

in the íìeld of íìnance and banking; management and land use; management and exploitation

of natural resources, minerals and public investment Sundry corruption situation is sho\vn

in the bribery in tìekl of administration, public services, bribery vvhen dealing uith thepublic authorities, still smarting The detection of corruption reniains vveakncss Thehandling of corrupt behavior in some cases expresses lenient; abusc remains to bedisciplined, administrativcly sanctioned instead of prosecutions, the accused prosecutedaccording to law Promoting the social role and responsibility and international cooperation

in the prevention and anti-corruption are limỉtcd Corruption is still a challenge and is one ofthe most pressing issues of today's society

Currently, the prevention and anti-corruption is the responsibility of many diíTerentagencies including (1) Prevention and Anti-Corruption Department dirccts coordinates,inspects and urgc prevention and anti-corruption activities; (2) The National Assembly,PeopIe's Councils at all levels supervise the prevention and anti-corruption; (3) thegovemment's inspection agency, the Ministry of Public Security, Ministry of Deíence,Institute of the Supreme People's Procuracy, the Suprcmc People's Court, thc State Auditorganizatỉon direct and guid to pcrtorm prevention and anti-corruption vvithin the assignedtunctions and tasks Each agency has diiTcrent roles, ỉunctions and tasks The rolc ofinspection agencies are

established under thc administrative level (Government Inspection, Provincial and districtlevel Inspection) in the prevention of corruption in recent years has taken its íunctions, butalso must look into the fact that the corruption detection is not liigh Thereforc, as a leader

of inspection industry of 1ỉai Duong province with over 20 years of vvorking, I \vould like

to contribute my little opinion on the anti-corruption

w o r k , so I chose the topic "Improving the role of inspection agency ỉn prevention and anti-corruption from reality in Hai Duong province” as my

Mastcr graduation thesis

2 The Research Objectives

The research is to discover some hidden problems and reasons that

lim ite d role o f th e S tate in s p e c t io n o r g a n iz a t io n s in d e t e c t in g a n d h a n d lin g

corruption, identiíying the strengths, vveaknesses, opportunities and challenges ofinspection organization in the prevention and anticorruption, through that proposingsolutions to enhance the role of the State Inspection organizations and anti-corruptionmeasures

3 Research Questions

This thesis íocuses on answering the follovving questions:

- Situation, the status ofcorruption in Vietnam in general and in particular in Hai Duongprovince? And hovv is the role of the State inspection agencies in detecting and preventingcorruption?

- The cíTects oí' inspection activities? Solutions to enhance the role of inspection

activities in the corruption detection and prevention?

4 Research Methodology:

4.1 Overview Research Methodology: Includes the laws, the legal documents of theState, speech of leaders of Communist Party and the State, and inspection magazine of theindustry

4.2 Data collection methodology:

a Data secondary and collection method: Research documents and reports such as thereport of the People's Council and People's Committee of Hai Duong province; theconclusion of social-economic inspection of Hai Duong Province

b Primary intbnnation and data collection methodology:

1) Survcy hy questionnaire with 55 persons who work for provincial and districtinspection agencies, and inspection dcpartments in Hai Duong province, to

c o lle c t in fo r m a tio n a b o u t th eir vievvs an d th eir a s s e s s m e n t: cu rren t State o f

corruption reality and role of the current inspection agencies in the prevention and corruption, what to do to strengthcn the role of inspection agencies in the prevention andanti-corruption? Which tầctors atTecting thc quality of inspection vvork in prevcntion andanti-corruption?

anti-2) Interviews some related objects, consist of 3 Chairman of District Pcople Committee;

10 -13 staff and inspectors; 1-2 enterprises (Inspection Objects), one lavvyer vvith contents related

to the perspective and role of the inspector, cause of inspection’s role is lovv in thc prevention andanti-corruption and rneasures to enhance the role of inspectors in thc anti-corruption and corruptionsituation tbrecast vvith the period from now until 2030

4.3 Data analysis methodology:

- Comparison: Based on the results of the inspection data on a numher of economic - social sectors, analysis to assess the effectiveness of anti-corruption inspection activities, which found the role of inspection agencies in anti-corruption \vork

- Cause and clTcct analysis: Analy/C thc role of inspection in the State managcment, thedirection and check of thc superior for lovvcr levels, chcck the loopholes in legal policies to add andedit timely accordingly

- Expert Methods: During implementing the thesis, I alvvays get the SLipport of cxpertsinside and outside of inspection industry and of the instructors at the University of ưppsala -Svveden and Vietnam

5 The limitations:

The topic has researched on a very large problem, vvith strategic meaning;

r ela ted to th c p o litic a l institutions of the State and being c o n c e r n e d b y the Party an d

State In thc framework of this thesis, in tcrms of the level, duration and limited tìnancialresources, it is unable to meet all research requirements, vvhich should have a longer time;legal framework and political system that the target could be solvcd more elTectively

6 Thesis Layout: This thesis consists of an introduction and thrcc chapters: Introduction: This section includes reasons for choosing thc topic, identifying

the objectives, research methods, research questions

Chapter I: Theories of inspection, prevention and anti-corruption; regulation on inspection and anti-corruption

Chapter II: Real situation of inspection activities in prevention and anti-corruption in Hai Duong province

Chapter III: Conclusions and Recommendations

CHAPTER I:

THEORIES OF INSPECTION AND ANTI-CORRUPTION; REGULATION

ON INSPECTION AND ANTI-CORRUPTION

1.1 THEORIES OF INSPECTION AND ANTI-CORRUPTION /, / /

The concept o f corruption:

In the broadest terms, corruption is understood as the act of any person withpositions and povvers or assigned duties, povvers and abuse their positions and povvers, orduties assigned to profit-making Guidance documentation of United Nations aboutInternational anti-corruption íìght (1969) dcíìned corruption in a

narrow range, that takine advantage o f State povver for private proílt - making.

Some countries worldwide have perceptions of corruption as follows:

According to Svvedish researchers Assoc PhD Erlingsson1, picture of

c o r ru p tio n w o u ld b e in c o m p le te i f e q u a te c o r r u p tio n as b rib ery: " Corruption must be defined as unethical behavior and obuse o f power - any jobs that lack o f obịective o f the people in the public sector lead to bias andpersonal bene/ìts "

The United Natiorvs documents ahout the anti-corruption íìght has detìned thatcorruption is abusing power for personal proíìt Committee in charge of corruption issucs of

the European Council deíĩned “Corrupíion is an bribery behavior and any other behavior o

f the person who is assigned the responsibilitv has been identified in the State sector and opened private sector, leading to failure to implement the obligatiom o f State offìcials, employees, independent correspondents or other relations to make illicit proỹits fo r him sel/and for other people ”

World Bank deíìned: “Corruption is the abuse o f public poxver fo r private bene/it ”2

Poundation Charter of Transparency International Organization (TI), and nonproíltindependent organi/ation vvith global scale that monitors corruption status

Resource: Corruption Perception Index 2013, IT (International Transparcncv)

hllp://vietnamnel.vn/vn/chinh-lri/152698/it-thain-nhung—thuv-dicn-van-lu-nhan—khona-phiii-lhicn-ihan-.htnil

Resourc : htlp:// victnamesc.victnam.usembassy

around the vvorld, is headquartered in Berlin, l edcral Republic of Germany delìned

corruption as "abuse of public povvcr for private bcnelìt"

According to Mr Boris Begovic, Vice President, Centre of Liberal-Democratic Studies(CLDS) United States3, thc economic theory outlined tvvo basic vievvs on corruption Theíìrst view considers corruption as an cxogenous factor; second view shovvs that corruption

is endogenous íactor in politics If we apply one of the tvvo above views, we can dividecorruption into three basic categories: corruption to accelerate the schedule, administrativecorruption and "bending the lavv" Although in most cases, corruption may bc due toplunder the spoils, but the selíìsh individuals seek to maximize their own intcrests as well asthe complex and vague lavvs, and the lack of ieasibilitv as also are thc cause of thatsituation

The concept of corruption in Vietnam:

Accordine to Vietnamese Dictionary is: "Corruption is the abuse their

authority to harass people and get vvealth."4

Grcat Vietnamese dictionary ( Cultural - Intbnnation Publishers, Hanoi 1998 page 1523)

outlined the concept: "Corruption is the abuse theirposỉtions andpowers, social status ọ/

State employees to contravenes the law or abusing legal loopholes to pro/ìt for them,

harmýul to society, fo r the people

The Ordinance against corruption dated 26-2-1998 also clearly stated in Article 1:

"Corruption is the behavior o f those who has positions and powers were abusing positions and powers in order to embezzle, bribe or attempt which is contrary to law because the prọ/

ìt engine, causing damage to the property o f the State, colỉectives and individual, invasive proper /unctioning o f institutions and organizations Corrupíion is the biggest obstacle in the process o f social development; the risk is directly related to the survival o f the State

- Curriculum of economic and social policy (Science and Technology Publishing House, Hanoi 2000, p 457) stated: Although expressed in dilTerent ways, corruption is understood fairly untied in leaal culture in countries around the

\v o rld , that is th e a d v a n ta e e o f p o s itio n , a u th o rity to c o m m it illegal a c ts fo r p e r so n a l

Resoure http://vielnunicsc.vietnain.uscmbassv.gov/doc coruplion cipc0305.hlml 4

Victnamese Dictionarv - Publishing llouse of Social Scicnees, llanoi, I98X

gain or in other vvords, corruption is the 11SC or usurp illcgally th c public povvers orcollectives resources.

Law on prevention and anti-corruption 20056 regulated: Corruption is the behavior

of persons with positions and povvers took advantage of their positions and povvers tbrtheir proíìt Person with positions and povvers, limited to thosc vvho work in agencies,organi/.ations and units of the political system; In othcr words, at the agency, oruani/.ation

or unit that use budget, Capital and assets of the State With such limitation is to focus onanti-corruption lìaht in the regions that occur most popular, suitable for the application ofmeasures to prevent and comhat corruption, such as: asset disclosure, openness andtransparency in the activities of agencies, organizations, and units that handle theresponsibilities of the leader

Transparency International (TI) has estimated that annual amount o f bribes globally could reach 20 to 40 billion dollars, used fo r lubrication o f the investment, business activities or administrative procedures

Forbes says íhat the list o f the most corrupt countries o f the world is based on transparent assessment o f International Transparency organization, a survey by the World Bank and the Bertelsmcnm Trans/ormation Index o f Bertelsmann organization, n hích is used to assess the ỉeveỉ o f development in 128 countries Political and Economic Risk Consultancy (PERC), headquartered in Hong Kong, ranked Vietnam in thirciposition in the list o f most corrupt countries in Asia-Pacific in a recent economic report.

The most corrupt country is Indonesia, one o f the economies thai are booming in the continent.The second position, before Vietnam is Cambodia After Vietnam is Philippines

PERC has reviewed 16 Asia-Pacific nations in perspective o f foreỉgn investors This organỉzaíion has consulted the opinions o f 2174 luxury and midsiie businessrnan in the regỉon

'Resource: Syllabus o f Society - Kconomic policy, Science and I cchnologv Publishing I louse I lanoi.

() Resource: National politics Publisher.House, tlanoi.

The organization noted that in Indonesia, corruption is rampant on all levels and struggling against corruption o f President Susỉlo Bambang Yudhoyono is hampered when the threatened/orces try to politicize this topic.

PERC's report says: “Corruption has become a crime thai those \vho use for defense and against reform The antỉ-corruption Jìght today threatened to do corruption.

self-Indonesia was scored 9.07 marks out o f 10 in the survey in 2010, last year this coimtry was 7.69 marks.

Countrỉes such as Thailand, India, Chỉna and Malaysia also considered as high levels o

Vietnam Government ahvavs affirms that anti-corrnption is one o f the top priorities, hut ulsu admits thai this problem meet much diffỉculties On 26/102010 Transparency International (TI) has announced the Corruption Perceptions Index 2010 (CPI) Vietnam ranked 116/178 countries and territories, with a score of 2 7 / 1 0

ì 1.2 The basic characteristics o f corruptỉon

According to the provisions of the Vietnam lavv, corruption has the following

basic characteristics:

- The subịcct of corruption is person who has position and poxvers:

Characteristics of corruption that are the subịect to períorm all acts must have thcirpositions and pcnvers The pcrson who have positions and povvers include olììcials andcivil servants; offìcers, proíessional soldiers, dctense workers in agencies or units of thePeople's Army; otììcers, non-commissioned officers and protcssional oíìlcers andprofessional noncommissioned officers - technical agencies, units of the People's Police;leaders, managers of State enterprises;

le a d e r s a n d m a n a g e m e n t is r e p r e s e n ta tiv e of th e State C apital sh a r e in th c

cnterprise; person vvho is assigned to pcríorm thc dutics and powers during implementingtheir duties (Clause 3, Article I, I.avv on prevention and anti-Corruption in 2005).

Overall, this group has special characteristics compared vvith othcr groups, such as thcyarc usually thc ones vvith the process of work and dedication, therefore, they have moreexperience; are traincd systematically, are experts in many diíTerent tìelds; with widerelationship and certain social prestige and even economic strength These characteristics ofthe corruption behavior make it dilTicuIt for the detection, investigation and trial ofcorruption behavior

- The subject of co r r u p tio n , abuse their assigned p o s itio n s and powers:

"Abusing positions and powers," for- self - interested is second teature of corruption.When períorming acts of corruption, corrupt persons must use "position and their pcnvcrs"

as a means to benetlt themselves, their íamilies or others This is 1'undamental to identilycorrupt practices A person vvith positions and po\vcrs but do not abuse their positions andpowers, it is not corrupt behavior However, not all acts of pcrsons vvith positions andpowers, took advantage of their positions and powers that are considered acts of corruption.There is interference between this behavior with the behavior of other criines, so it isnecessary to take note vvhen distinguish acts ol corruption vvith other violations of law

- The aim of corruption behavior is self - intcrested: corruption behavior is intentionalbehavior lf the subịect performs involuntary acts, it is not the acts of corruption Self -interested in this context refer to material bcnclìts or mental beneíìts that people vvith1'unctions; authorities have achievcd or can be achieved through corrupt practices Thus, whendealing with corruption behavior, not mandatory subịects of corruption to gain beneíìts

The lavv also regulates thc assessment of the nature and level of the danger of corruptionacts primarily bases on the determining the physical benetìts that corruption person achieved

so that determines the degree of Processing. Material bcnetìts in the current marketmechanisms expressed in many different íonns, if only bascd on thc discovered or recoveredproperty to assess thc beneíits that corrupt persons achieved will not be enough.Furthermore, the physical and mental

assets to promote their reputation, credibility and build relationships to m ak e illicit protìts Inthis case, the purpose of the act is both a physical beneíìts and mental benelìts

For the private sector, when corruption case occurs, the la\v has made certainadjustments However, there are also cases that people holding positions and po\ver inorganizations, private sector tìrms, linked up with thc degradation, deterioration person inthe public sector or to take advantage of the inlluence of these people for personal interests

In that case, they become accomplices to those vvho commit acts of corruption beprosecuted for criminal liability

1.1.3 Corruption identifìcation.

Corruption is a common phenomenon globally Reactions to social corruption arcextensive in everywhere, every country, nation and mankind Anti-corruption requires closecoordination betxveen the countries and intemationals in the world, especially in the context

of globali/ation and integration

Idcntiíying corruption in Vietnam showed signs of its complex; its characteristics arediverse, manitbld shades, types, extent, and consequences Scrious levels and diíTiculty ofcorruption in Victnam is explaincd from the weakness of institutions, the half-hearted inimplementing and directing the degradation of many otĩicials and civil servants inapparatus, even corruption is included in ịudicial activities, in the investigation, prosecution,trial and execution Corruption is present in legislation status, but the treatments arc vveakand formal, is a cominon practice nowadays

'Iliere are small and pctty corruptions in harassment and causing inconvenience tothe people, procrastination, procrastination in resolving administrative work at thegrassroots level, the aim is to get money from people's pocket Trick of this kind ofcorruption is deliberately complicate simple things, taking advantage of cumbersomeregulations, forms of administrative procedures to bother the people

There is massive corruption in the job searching transaction, transícr, promotion,aiid appointment of oíììcials The more high-lcvel of potentially lucrative position it is, thegreater the level of corruption The transaction, the deal usually come broker agents,

intermediaries, creating unvvrittcn rules, íòrming the tacit rules, everything, all measures toachieve the purpose are shapcd hy money and monetization Ít creates behavior style

"Payment in advance", "withdrawn later" corruption spawncd corruption

There is massive corruption, mix a combination of individual and group corruptions,known as group interests (or the illicit, illegal interests) I his is a form of organizedcorruption, have instigated, manipulated into organizations, institutions and policies withthose who have thc responsibility, authority to settle This type of corruption occurs in theproject activities, procurement, contracts and economics, land, íìnance - bankina import andexport, infrastructure, expansion of industrial

p ark s, urban areas, e d u c a tio n a l services, h ea lth ca r e , an d S c ie n c e - te c h n o lo g y ,business, and economic groups Land and land acquisition, clearance, clcaranceconipensation, real estate business is just one of those cases, the highlight situations in thecountless cases, the current situation of corruption

The íầct that, in many places, povver and position solicitation has occurrcd I hereare other types of "runs", from small to large and very large, which is running aboutsoliciting the school, classes, to solicit the project and the ịudginent This is the focal point

of the painful, hurning in the vvhirlpool of money and power, in the purchase, sale, barter,crime and evils

To "run", they must set up the relationship, the group connection, to achieve thepurposc, they must enable the relationship with money, and comes vvith the mcdia, othertricks, no identity, urứầir, unjust, or even use those tricks crimes, inhuman

Dcspite of diíTerent expressions, dilTcrcnt levels, and corruption occurs as asyndrome plunder, exploitation of rights and the money to be rich and illicit protlts

ANTI-CORRUPTION

1.2.1 Prevention and aníi-corrupíion Law in 2005 reguỉaíed corruption is an act o f the people with power, corruption behavior is constỉtuted by three /acíors: the behavior o f power person; Took advantage o f their positions and poyvers; fo r the purposes o f self- interest.

Prevention and anti-corruption Lavv lists the following acts of corruption:

- Assets embezzlement

- Taking bribes

- Abusinc their positions and ptnvers to appropriatc p r o p e r ty

- Abusing positions and povvers vvhile on duty, public Service for-profit

- Abusing power vvhilc on duty, public Service for-profit.

- Abusiim their positions and powers to intluence others in order to proílt

- Forgery in \vork for-profit

- Giving bribes, bribing brokers made hy persons vvith positions and povvers to solve the job of agencies, organizations, or local units for self-interest

- Abusing positions and povvers, unauthorized use o f State property íor personal

interests

- Harassment for self-interest

- Do not pertbrm tasks or services for self-interest

- Abusing their positions and povvers to protect those who violate law for-profit;obstructing, unlavvlul interfering in the examination, inspection, audit, investigation,prosecution, trial, judgment enlbrcement for sell-interest

Among above 12 corruption behaviors, there are seven acts prescribed in thc CriminalCode in 1999; were amended and supplemented in 2009 and take effect 1'rom January l st,

2010, including:

- Assets embezzlement: Ahusing their positions and povvcrs to appropriate property which they have management responsihilities

- Taking bribes: Abusing positions and powers, directly or through

in te r m e d ia r ie s h as r e c e iv e d or w ill r e c e iv e m o n e y , p ro p crty o r o th er m a teria l

interesís in any forms to do or not to do something tbr benetlts or the request of the bribe giver

- Abusing their positions and powers to appropriatc property

- Abusing positions and povvers vvhilc on duty, public Service for-profit means

the individual for protlt or other personal inotives that abuse their positions and poxvers toact against services to cause the damage to interests of the State, society, the rights andlegitimate interests of citizens

- Abusing povver while on duty: as individuals for prolìt or other personal motives thatexceeded his povvers to act against oíTicial duties, causing damage to the interests of the Stateand society, rights and interests legal citizens.

- Abusing their positions and povvers to iníluence others in order to profit: is the personalabuse their positions and povvers, directly or through intermediaries has received or willreceive money, property or material benefits in any other form, causing serious consequences,has been disciplined for such acts but continue to commit, to use their intluence to promotepersons vvith positions and powers to do or not to do a job responsibility or directly related totheir job or doing a job that is not allovved to do

- H orgery in th e w o rk : th c in d iv id u a l fo r p r o tìt o r o th c r p e r so n a l m o tiv e s th at

abuse their positions and povvers, pcríonn one of the fo!lowing acts:

+ Repairing, falsifying contents of papers and documents;

+ Making, issuing false papers;

+ Forging signatures of persons vvith positions and powers

- Behavior "giving bribes, brihing brokers made hy pcrsons with positions and povvers

to solve the ịob of agencies, organi/ations, or local units for personal": This is a newmaniíestation of corruption Because of still existing the "ask - give regime" in many arcas, somany individuals rcpresenting agencies, organi/ations, or local unit sought to bribe peoplevvith positions and povvers in charge approving the programs, prọịects, 1'unding, budgets to bebeneíìcial for agencies, organi/.ations, units and their local and through vvhich to achievepersonal interests This behavior is considered as corruption behavior It should bc noted thatthe giving bribes, bribing brokers are detìncd as oíTenses in thc Criminal Code that are notamong the crimes of corruption but the criminal group of position Also giving bribes, brihingbrokers are perlbrmcd hy actors with positions and povvers to tackle the job of agencies,organi/ations, or local units for proiìt is considered as corruption act This behavior has to begoverncd by lavv vvith criminal offenses respectively (if the act constitutes a crime), just asacts ot' corruption under the regulation ol' thc law on corruption

- Behavior "abuse their positions and pcnvers, illcgal use of State property íbr personalbenelìts": This is abusc of taking advantage oíthe right of the managemcnt of State assets to servepersonal interests or a group of people instead of serving thc public interest Speciíic expression ofthis behavior is often assets for lease such as íầctories, offices, cars and other assets for the purpose

of selí-interest The number of rental properties sometimes is very large

- Behavior "harassmcnt for selí-interest": Harassment is behavior that has been described inconceptual terms ỉt should be emphasi/.cd that the behavior appears more in the activities of anumber of govemment agencies, especially the administrative offíces, which directly solve the vvork

of citizens and enterprises A number of oíĩicials and cmployecs do not pertorm their responsibilitywith the

attitude o f the mind and spirit o f Service that in contrast, they often take advantage

of loopholes or unclear procedures, even arbitrarily set the conditions that make it moredilTicult for citizens and enterprise to 1'orce them to givc gifts The esscnce of this behavior

is to torce to give bribes that are disguised in term oi' sophisticated fonns that is diiíicult totreat It can be considered harassment is behavior "ask for bribe” indirectly or at the levelthat is not really serious and can be used adminisírative remedies

- Bchavior "abusing their positions and povvers to protecl those vvho commit acts of lawviolation for their self-intcrest; obstruction unlawful interíerence in the examination, inspection,audit, investigation, prosecution, trial judgment enforcement for protìt Corrupt behavior sometimes

is shielded or even is abetted by those holding positions and power of highcr level Thereíòre, thedetection and handling of corruption is extremely diffícult The protection for those who commit acts

of corruption, hindering the detcction process \vhcn corruption is concealcd under a lot of differentforms, such as postal mail phone, reminding, to avoid the responsibility implementation or havingattitude or things that is not collaboration

with the competent authorities

- B e h a v io r "did n o t p erlb rm ta sk s o r mission fo r s e lf - in te r e s t” is th e a c t thatcommonly known as the "gatckeepers" of those who are responsible tor

management, especially some of the people vvorking in local govemmcnt base, has

"ignorcd" or even abetting the violation so that receiving benetìts from the oíTender

* Functions, tasks and rights of inspcction agencies under the prevention and corruption Law

anti-a) Responsibility for coordination of inspection agencies, State audit,

investigation, procures, and the courts of agencies, organi/ations or concemed units

Inspection Agency, the State audit investigation, procures and courts \vithin theirtask range, povvers are responsible for coordinating with each other and coordinate withagencies, organizations or units in detecting acts of corruption, handling those who hascorruption behaviors and take responsibility beíbre la\v for thcir conclusions, their decisions

in the course of inspection, audit, investigation, prosecution and adjudication of corruptioncases

Agencies, organi/ations and concerned units arc responsible for íacilitating,collaborating with inspection agencies, State audit, and investigation procures and courts inthe detection and treatment of people with corruption behavior

h) Detection of corruption through inspection, audit, investigation procreation, judgment (Articlc 62, prevention and anti-Corruption Law)

Inspection Agency, the State audit, investigation, procures and courts throughinspection activities, audit, investigation, ịudicial accountability act proactively detectcorruption, treatment within their jurisdiction or recommend the treatment as prcscribed bylavv and take rcsponsibility bciorc la\v for their decisions

c) Coordinate activities betvveen inspection agencies, State audit, and investigation, procures and courts (Articlc 80 Prevention and Anti-Corruption I.avv)

Inspection Asency, the State audit, investigation, procures; courts have theresponsibility to coordinate the prevention of corruption according to the tollovvingcontents:

Regular exchange of iníòrmation, documents and experience in the prcvention and anti-corruption;

Transfer prolìlc of corruption cases to the authori/.ed State agency to handlc;

Synthesize, evaluate, and íorecast corruption situation and policy rccommendations, prevention and anti-corruption ìneasures.

d) Working coordination betvvecn inspection agencies, State audit with investigation agency (Article 81 of thc Anti-Corruption Law)

- In cases the inspection agency and State audit transíers the records of corruptioncases to thc investigating agency, thc investigation agency inust receive and resolve under theprovisions of the law on criminal procedure

- In case of disagreement with the resolution of the investigating agency, the

inspection agency, the State audit has the right to infonn the Procures o f the same

level, superior investigation agency

e) Working coordination betvveen inspection agencies, State audit vvith Procures (article

82 Law on Anti -corruption)

- In c a s e o f tra n sterrin g p r o lìle o f co rru p tio n c a s e s to th e in v e s tig a tin g a g e n c y ,

the inspection agency and State audit has responsibility in inforining the Procures o f

the same level to make the procures

- In c a s e s th e in s p e c tio n agcncy and a u d it r e c o r d s State tr a n sier c o rru p tio n c a s e s

to the Procures, the Procures must consider, resolve and notice the result in writing to thc agency that transícrred records

1.2.2 Reguỉations o f the ỉnspection Law

1 2 2 1 General regulations:

The purpose of inspection activities: to detect loopholes in thc mcchanisms

o í' m a n a g e m e n t, p o lic ie s an d la w s to make r e c o m m e n d a tio n s to th e a u th o ri/.ed Stateagency the remedies; prevent, detect and handle violations of thc lavv; help agencies,organizations and individuals to comply with thc provisions of law; promotc positivefactors; contribute to improving the eíìectiveness and eíĩiciency of State managementactivities; protect the interests of the State, the legitimatc rií^hts and interests of agencies,organizations and individuals

The tunction o f State inspection agencies: State inspection agencies vvithin

the task, thcir powcrs implement and heip authori/.cd State agencies to manage State

inspection, the complaints and denunciations, and prevention of corruption;

õÃiTiọc qu o c " gìa hà nội ị TRUNG TẦM THÒNG TIN

conducting inspections, solving complaints and denunciations, and prcvcntion of corruption

as prescribed by lavv (Article 5 of thc Inspcction Law 2010)

Principles of inspection activities: Comply vvith the law; ensurc accuracy, objectivity,honesty, openness, democracy and timely

Inspection activities hy inspection teams and inspectors who are assigned to performspecialized tasks performed inspections

1.2.2.2 Reguỉations on Inspection Activities:

Inspection Law stipulates: Inspection activities by inspection teams and inspectors andperson who are assigned to períorm specialized inspections tasks (Within the framework ofthis thesis, it just only research on the administrative inspection activities)

Heads of State inspection agency make inspection decisions and establish inspectionteam to carry out thc inspection decision When considering it is

n e c e s s a r y , h e a d s of State m a n a g e m e n t a g e n c ie s m a k e in s p e c tio n d e c is io n and

establish the inspection team The inspection team has head of inspection team, inspectors and other members

1.2.2.3 H ead o f adm inistratỉve inspectỉon teams has the folỉo\ving duties and rights:

- During the inspection, the inspection team leader is responsible for, the follo\ving rights:

a) Organize and direct the inspection team membcrs to comply vvith content of

inspection decisions;

b) Recommendation vvith for inspection decision makers, applying applicablc dutiesmeasures and povvers of dccision making inspection speciíled in Arliclc 48 of this I.avv toensurc the perfomiance of assigncd duties;

c) Request inspection object to providc information, documents and reports in \vriting,cxplaining thc issues related to inspection contents; vvhen necessary, conduct an inventory

of assets relatcd to the content of the obịect inspector;

d) Requires agencies, organizations and individuals with iníbrmation and documcnts related inspection content to provide iníbrmation and documents;

d) Ask the authori/ed person temporarily kecp money, objects, unlawful use vvhenappropriatc to immediately prevent violations of the la\v or to verify facts as

evidence for the conclusion and Processing;

e) Request a credit institution where thc obịect inspector frozen account to an accountthat served as the inspector has grounds to believe that the object inspector behavior ofdispersed assets;

g) The decision to seal the documents of inspection objects when there is evidence that is a violation of lavv;

h) Temporarily suspend or propose to persons \vho has thc right to suspend workwhen seeing that the work cause serious damagc to the interests ot' the State, the legitimaterights and interests of agencies, organizations and individuals;

i) To propose competent persons to temporarily suspend the enforcement of

d isc ip lin a r y d e c is io n s , vvork tra n sfer, retirin g to p e r so n w h o is w o r k in g for th e State

inspection agency or being inspection object if the entbrcement decisions hinder the

inspcction;

k) Report to the decision makers on the results of inspections and inspectors \vho are responsible for the accuracy, truthíulness and objectivity of this report

2 When deeming that it is unnecessary to apply the measures spccifícd in points e, f,

g, h and i, Clause i of this Article, the head of the inspection team make decisions orcanceling recommendations immediately thc application of such measures

3 When pertorming the duties and povvers specitìed in Item 1 of this Article, theinspection team leader shall be responsihle hctbre the inspection decision maker to theirbehavior and decision

1.2.2.4 The inspection team members have the fo ỉlo w in g tasks a n d pow ers:

- Perlbrm duties as assigned by the I lead of the inspection team.

- Request Inspection Object to provide infonnation, documents and reports in vvriting,explaining the issues related to inspection contents; requires agencies, organi/ations andindividuals vvith information and documents related inspection contents to providc intbrmationand documents

- Inspection teams propose measures applicable duties and povvcrs oí the head of theinspection team as stipulatcd in Article 46 of this Law to ensure the performance of assigned duties.

- Recommendations for handling other matters related inspection contents.

- Assigned task performance report to the inspection team leader, responsible to the head ofthe inspection team and the lavvs in tenn of the accuracy, truthfulness and obịectivity of the reportcontents

1.2.2.5 The inspectỉon decision-m aker has the right as foỉlow :

a) To direct, control and supervise the inspection team to strictly comply with

inspection decision contents;

h) Request inspecíion object to provide information, documents and reports in writing,explaining the issues related to inspection contents; requires agencies, organizations and individuals with iníbrmation and documents related inspection contents to provide intbrmation and documents;c) Request expertise on issues related to inspection contents;

d) Ask the authorized person cotemporary custody ot' money, obịects; unlawful usinglicense when seeing that it is appropriate to immediately prevent violations of the la\v or to veriíyfacts as cvidence for the conclusion and

Processing;

so to cause serious damage to the interests of the State, the legitimate ris,hts and interests ofagencies, organi/.ations and individuals;

e) Request the credit institution vvhere the inspection obịcct has account to escrovv thataccount íor inspection vvhen having the basis that the inspection object

d isp e r sc a s s e ts , d o n o t m a k e d e c is io n s o n w ith d ravval o f m o n e y , a s s e ts o f th e h e a d s

o f State in sp e c tio n a g e n c ie s or h e a d s o f State m a n a g e m e n t a g e n c ie s ;

g) Propose competent persons to temporarily suspend the eníorcement of disciplinary decisions, work transter, retiring to the person who are working for State inspection agency or being

as inspection obịect if seeing that the cntbrcement decisions hinder the inspection;

h) Propose competent persons to suspcnd the vvork and dealing vvith otììcials and civilservants \vho deliberately obstruct the inspection or not implement the rcquirements and proposals,decisions of inspection;

i) Decide to handle vvithin their competence or propose competent persons to handle theinspection results; inspect and supervise the implementation of the decisions of the inspection;k) Decide to withdraw money and property that vvere appropriated, unauthorized uscd or loss due to violations of the law caused thc inspection object;

I) Settle complaints and denunciations related to the responsibilities of the hcad of the inspection team, thc other members of the inspection team;

m) Suspend or chanee hcad of inspection team, members of the inspection team when theydid not meet the requirements, the inspection tasks or violations of law or is a relative ot' thcinspection obịect, or for other objective reasons that cannot períbrm inspection tasks;

II) Conclusion on inspection contents;

o) Transfer records of law violation cases to the investigating agencies when detected signs of crime, and also intorm in writing to the Procures of the same level

1.3 FUNCTIONS AND DUTIES AND POWERS OF INSPECTION SECTOR IN PREVENTION AND ANTI-CORRUPTĨON (within the framework of this thesis refers only to administrative level inspection from governmcnt inspector to district level inspcctor).

1.3 ỉ The Government Inspectorate:

Government Inspectorate is an agency of the Government, the Government isresponsible for the management of State inspection and settlement of complaints anddenunciations, and prevention of corruption in the country; pertbrm inspcction activities,settlement of complaints and denunciations, and prevention of corruption as prescribed hylaw

General Government inspection is Government members, is the head of the inspectionscctor General Government Inspector is responsible to thc National Assembly, the PrimeMinister on inspection, settlement of complaints and dcnunciations, and prevention ofcorruption

Duties and povvers of the Government Inspectorate

a) Develop strategy programs orientation, legal documents about the inspectionauthority to promulgate and approvc or promulgate according to its

c o m p e te n c e ; g u id a n c e , c o m m u n ic a tio n , c o n tr o l a n d in s p e c tio n o f th e

impleinentation of legislation on inspection;

h) Schcduling inspection of thc Government; to guide Inspectorate of the Ministry,the provincial inspector in construction and implementation of inspection plans;

c) Direct the work, proíessional guidance on inspection; professional training

tbr inspection staff and civil servants inspection;

d) Assume the responsibility and coordinate vvith the Ministry of Interior to guide onorgani/ational structure, staiTine and inspection levels, branches, conditions, criteria andappointment of Chief Inspector, Deputy Chief Inspectors, Inspectors levels, sector;

d) To request Ministry, ministerial-Ievel agencies (hereinafter referred to asMinistry), the provincial People's Committee to report on the inspection; synthesis report onthe results ofthc inspection; summarize the experience of inspection;

e) To monitor and supervise and inspect the implementation of the conclusions andrecommendations and inspection handling decision of the Prime Minister, the

During the inspection actỉvities, the Government ỉnspectorate has the following powers:

a) To inspect the implementation of policies, laws and duties and povvers of Ministry,agencies attached to thc Government, the Provincial People's Committee; inspection to Statecnterprises that are decidcd to establish hy Prime Ministcr;

b) To inspect complicated cases involving multiple management responsibilities of Ministry, the provincial People's Committee;

c) To inspect other cases assigncd by thc Prime Minister;

d) To check the accuracy and legality of inspection conclusion and Processing

decision aíter inspection of Ministers, heads of ministerial-Ievel agencies

(hereinafter reíerred to as the Minister), chairman ot' thc provincial People’s Committee

when necessary

e) State management in the settlement of complaints and denunciations; pertbnn tasks

of solving complaints and denunciations in accordance with the lavv

on complaints and denunciations

0 State management in the prevention and anti-corruption; períbrm the task of preventing and anti-corruption in accordance vvith the la\v on the prevention and anti-corruption

Powers of the General Government Inspectorate. (Article 16 Inspection Law)

a) Decide the inspection when detecting signs of law violation and shall bc responsible to the Prime Minister about his decision;

b) Decide to inspect again the case that has been concluded by the Minister but detectingsigns of lavv violation to be delivered to the Prime Minister; Decidc to inspect again the case has beenconcluded bv Chairman of the provincial People’s Committee hut detecting signs ot’law violation;c) Recommenđ Minister, request the Chairman of the provincial People's Committee toinspect in the management range of the Ministry, thc provincial Pcople's Committee when detectingsigns of law violation; if ministers, Chairman of provincial-levcl People's Committees disagrce, it hasthe right to make inspection decision, report and be responsible to the Prime Minister about itsdecision;

d) Recommcnd the Ministers to suspend thc implemcntation or repeal of regulations issued

hy the Ministry which arc contrary to the provisions of the superior State agency, of the GeneralGovernment Inspectorate in tenn of the inspection; if the Minister does not to suspcnd or cancel suchdocuments, it is submitted to the Prime Minister for decision;

d) Suspend the execution and recommend the Prime Minister to abolish regulation of the provincial People's Committee, the Chairman of the provincial

People's Committee th at is a g a in s t th e r e g u la tio n s o f su p e r io r s State a g e n c ie s ,

General Government Inspectorate;

e) Propose to the competent State agencies to amend, supplement or promulgate regulations in accordance with management requirements; propose the suspension or cancellation of unlawful provisions detected through inspection;

g) Recommend to the Prime Ministcr to consider responsibilities, handle under the ịurisdiction of the Prime Minister with lcgal violations discovered through inspections or not

implement the conclusion, decided to handle the inspection; asks

the head of the agency or organization to take responsibility for revievving and

Processing undcr the management of thc agcncies and organizations with legal violationsdiscovered throuah inspection or not implement conclusions, decisions to handlc inspection

1.3.2 Provincial Inspectorate.

- Provincial Inspections is a specialized agency of the p r o v in c ia l People's

Committee, vvith the responsibility for assisting the same level People Committee to

m a n a g e th e State in term o f in s p e c tio n an d s e ttle m e n t o f c o m p la in ts and

denunciations, and prevention of corruption; conducting inspections, solving complaints and denunciations, and prevention of corruption as prescribed by law

Provincial Inspectorate under the direction and administration of thc Chairman ofthe 1’cople's Committce of the same levcl and under the direction of the \vork guiding theorgani/.ation and operation of the Government Inspcctorate

- Provincial Inspectorate has tasked and powers (Article 21 Inspection Law in

2010)

a) Develop an inspection plan to the chairman of the provincial People's Committee for approval and implementation plans;

b) Require specialized agency of the provincial People's Committee (hercinarter reterred to

as dcpartments) thc district People's Committee report on the inspection; synthesis report on theresults of the inspection;

c) Direct the inspection, professional guidance for administrative inspection

inspectorates, district inspector;

d) Monitor and supervise and inspect the implementation of the conclusions andrecommendations and handling decision of the inspection of thc Chairman of the provincial People'sCommittee, Provincial Inspectorate

e) Inspect the implementation of policies, laws and duties and powers of the

departments of the district People's Coimnittcc; inspection of state-ovvned enterprises that is decidcd

to establish by thc Chairman of thc provincial Pcople's Committee;

r) Inspectorate coinplicated cases involvine, multiple responsibilities of departments

and district-level PeopIe's Committees;

h) Inspectorate other cases assigned by the chairman of the provincial People's Committees;y) Checking the accuracy and legality of the inspection conclusion and

Processing decision after inspection of Directors of Departments, Chairman of the district

People's Committee as necessary

k) Iỉclp the provincial People's Committee to manage the State in the settlement ofcomplaints and denunciations; perform tasks of solving complaints and denunciations in accordancevvith the law on complaints and denunciations

n) Help the provincial People's Committee to managc the State in the prevention andcombating of corruption; pertbrm the task of preventing and combating corruption in accordancevvith the lavv on the prevention of corruption

- The Chief Provincial Inspector has povvers (Articlc 22 Inspection Lavv)

a) Decide the inspection vvhcn detecting signs of law violation and shall hc

responsible to thc Chainnan of the provincial People's Committee in its discretion;

h) Decide to inspect again thc case that vvas concluded bv Department Director but dctecting signs of law violation \vhcn assigned hy the Chairman ofthe provincial People's

Committees ; decidc to inspect again the case that was concluded by the chairman of the district People's Committee but detecting signs of law violation;

c) Require Department Director, Chairman of the district People's Committee to inspect in the management scope of the departments, the district People's Committee upon detecting signs of law violation; if Department Director, Chairman

of the district People's Committee does not agree, thcy may make decisions inspection reportand be responsible to the Chairman of the provincial People's Committee in its discretion;

d) Recommend to Chairman oí the provincial People's Committee to solve the

problem of inspection; if recommendations are not accepted, the report to the General Government Inspectorate;

Committee has legal violations detected through inspections or pertbrm concludes,

handling decisions on inspection; asks the head of the agency or organization

r e s p o n s ib le tbr r e v ie w a n d P r o c e s s in g u n d er th e m a n a g e m e n t o f th e a g e n c ie s an d

organizations with legal violations discovered through inspection or not implement

conclusions, decisions to handle inspection

- District Inspectorate subject to the direction and administration of the Chairman of thePeople's Committees of thc same level and under the direction of vvork, inspection protessionalguidance of the provincial Inspectorate

- District Inspectorate has povvers:

a) Inspect the implementation of policies, laws and duties and powcrs of the speciali/cdagencies under the district People's Committee, communc People's Committee;

b) Inspcct complicated cases, relating to the responsibilities of many specialized agencies

of the district People's Committee, eommune-level People's Committees;

c) Inspect other cases assigned by the chairman of the district People's Committees.

d) Assist the district People's Committee of State management of the scttlement ofcornplaints and denunciations; perlbrm tasks solving complaints and denunciations in accordancevvith the lavv on complaints and denunciations

e) Assist the district People's Committee of State management of the prevention andcombating of corruption; perform the task of preventing and combating corruption in accordancewith the law on the prevention of corruption

- The Chief District Inspector has powers:

b) Decide the inspection vvhen detecting signs of law violation and shall be responsible to the Chainnan of the district People's Committee of his decision;

c) Propose competent State agencies to amend, supplement or regulations proinulgated inaccordance with requirements management; recommendations suspension or cancellation ofunlavvtul provisions detected through inspection;

d) Recommend to chairman of the district People's Committee to solve the problem ofinspection; if recommendations are not accepted, report to thc Provincial Chief Inspector;

e) Recommcnd to chairman of the district People's Committee to considcr and handle personunder the management oi' Chairman of the district People's Committee has legal violationsdiscovered through inspections or not implcment the conclusion, handling decisions on inspcction;asks the head of the agency or organi/.ation responsible for review and handle person under themanagement agencies and organizations with legal violations detected by inspection or hy theconclusions and decision Processing inspection

I herelbre, it can hc seen from the above regulations is that inspection agencies are

subordinate and bcar an overall guidance from the heads of administrative agencies of the same level While the inspection power is stimulated in thc

legislation, it is necessary to have consensus or bcar responsibility (once decided hy

thc inspection agency itscl0 for the hcad o f administrative agency o f the same level.

With regards to competence, thc inspection agency has only the right to propose,

not to decide, thus the povver is limited in corruption discovery

CHAPTER II:

REAL SITUATION OF INSPECTION ACTIVITIES IN PREVENTION AND

ANTI-CORRUPTION IN HAI DUONG PROV1NCE

2.1 Summarv characteristics and soeial-eeononiic situation ĨỈ1 Hai Duong province:

Hai Duong province has a population of 1.8 million people, 12 administrative units:

I lai Duong City (urban type 2), Chi Linh Town, Cam Giang district, Binh Giang, Gia Loc,Kinh Mon, Nam Sach Ninh Giang, Kim Thanh Thanh Ha, Tu Ky natural area of 1,662km2, is divided into tvvo regions: thc mountain area and the plain areas The mountain area

is in the northem of the province under Chi Linh district and Kinh Mon district Hai Duongprovince íòrest area is 9,140 hectares, ofwhich 2384 ha of natural tbrests, and 6,756 hectares

of reíòrestation

Hvcn if mineral resources of Hai Duong are not many, some have large reserves,good quality to meet the needs of industrial development, especially in the

in d u stria l p r o d u c tio n o f c o n str u c tio n m a te r ia ls in th e p r o v in c e , vvhile p r o v id in a raw

m a te r ia ls ío r th e Central g o v e m m e n t an d s o m e other p r o v in c e s

Under the 2010 Inspection Law, inspcction agencies are organi/cd at the

district, tovvn, city and provincial departmcnts At Ihc provincial level, there is a

provincial inspcction The rcality has sho\vn that this inspection agency holds insuíTicientpovver to detect a public corruption cases, cases have been detected but not competentenough to make prosecution under the lavv Ít can be determined that corruption cases arethcrc in Hai Duong as thc people arc much concemed vvith numerous denunciations,hovvever cases arc not death \vith properly During the 5-year period from 2010 to 2014:

* The security industry and the Procures have handled the investigation, prosecution

of 05 corruption cases (01 for abusing povvers to appropriatc assets and deliberate contravention of

State economic management causing serious consequences, 03 cases for abusing, authorities vvhile

on duty (01 cases i'or embezzlement and abuse of povvers vvhile on duty (thc total amount of corruption is:

7,158,884,155 VND, of vvhich 437.977,500 VNI) vvere recovered) But the cases are notdetected by inspection branch in ordcr to transler the file to process.

*) Inspection agencies have made 1,873 administrative in s p e c tio n s in the a rea s of

budíìct receipt and expense management, investment, construction, management and use ofland and natural resources, puhlic policy implementation From these inspections, manvmistakes in economic management have been revealed, the total amount of errors is 70.826billion VND and recommendations are made to retrieve 12.170 m2 land A single casedetected signs of corrupíion in land vvhich was proposed but not yet processed

2.2 The results of anti-corruption inspection activities in a number of social

and economic sectors of Hai Duong province Inspectorate:

2.2 ỉ Anti-corruption inspection in the ftel(i o f budgeí management at the level tíf

communes, districts, cities andton ns.

Situation: In many cases, making false record of compensation clearance to \vithdrawbudget for unjust beneíìciaries vvith hundreds of millions Dong such as in Dong GiaCommune, Kim Thanh district; deliberately unprincipled tìnancial cost \vith hundreds ofmillions Dong, deliberately violates about economic inanagement \vith the purposes ofappropriating illegally using public funds to beneíit

individuals and loss the State budgct.

Detection and inspcction conclusion: Octoher 2007 Hai Duong Province Inspectorateinspectcd the budget receipt and expcnse management of People’s Committee of Dong GiaCommune, Kim Thanh District in 2004 to 2005 and

discovered the following results:

Through inspections has dctected violations that tocuses on the following violations:

1) Sonic revenue indicators do not achieve plan as revenue reached 79.6%; othcr revenues reached 99.7%; Land use right translcr tax reached 10.9%; Land registration fee 3.6%;

2) Peoplc’s Committee of Commune’s cxpenditurc also vvrong vvith regulation,regimc mainly to go on holiday; printed schedule for Tet gifts; huying gifts for Party Congress;spcnding on Tet holiday gifts.

3) Making íầke vouchcrs to takc moncy from budget: mainly: townships landcompensation; crops and land compensation for 24 households; to extend advance that not fullvexecuted

4) Wrontìly accounted such as in 2005 collecting land use riahts paid to the otherincome categories People’s Committce of Commune reported dishonestly about tìnancial activity

of the receipts and expenditure account of the People's Council, some incorrect data forsettlcments reported up to the agency superiors were coníìrmed hy Peoplc's Committee ofCommune of Treasury deducted budget to paid interest for credit and personal)

5) Collecting money from land contribution of people but do not timely contribute tothe State Treasury, are not timely payment, collection ot" land money ultra payment of vvrong

State budget index

6) Cost accounting of vouchers does not suit with properly estimate as interest

payments accounting, operations departments and inass organizations amount:

On January 171, 2014 Hai Duong Province Inspectorate has inspected thccollection, management and use of funds; Cam Giang district Hai Duong Province in 2013.Specific results were found Í1S tolknvs:

- I he total State budget rcvcnues in thc province in 2013: 444.019.203.000 VNI)

revenue revenue revenue revenue Revenue híủuxx' State budget 115.403.162 502.109 10.318.403 60.771.691 43.810.959 Domestic revenues 89.980.512 502.109 10.318.404 49.583.443 29.576.557 Revcnues from the

143.645 132.526 11.1 19 budget surplus

Revenue transíer

resource

1 from high-level budgct

502.109

308.772.39 124.426.29

3 8

h) To summary the State budget expense in the district The total amount spent in 2013:

433.100.798.000 VNI)

+ Commune - Level Budget: 124.425.036.000 VNI)

Calculation unit: 1.000 VND

2013

District Budget C om m une Budge

I) Expcnses for electric support, altemative vehicle support.

Through the inspection found some of violations, as follows:

- Sonic indicators of assigned revenue is lcnver than the previous year's

revenue

- The dcbt collection organization is not yet determined, thc observancc of the tax

obligation of a number of organi/ations and individuals are poor it is not

effective to reach higher, more extended objects arrcars The balance ovvcd vvinning theauction of land use rights of the commune, the town has not payment on December 31st'

2013 is 14,526,514,867 VND

- Some communes, towns sign the contract for rent thc broadcast collection

stationinstallation site, the amount that collected wcrc used to purchase assets, tools andsupplies for the protessional division of People’s Committee of Commune but notaccounted in the accounting books;

- Career activities revenues do not enter in the a c c o u n ts , monitor in the accounting book

- Some revenues in thc district budíiet payment of is incomplete and timely as stipulated

Some solutions, handling:

1) For violations in Dong Gia Commune:

- In term of the principles, they must recover improperly spent money: 235.161 000 VND only to go holidays, printing calendars; spending presents tor Coimnune Party Congress, Tet gifts: ưsing public funds to pay interest vvrongly but verilỳ that the Communc People’s Committee costs are rcal are used for the purposc of collective, so not to recommend rccovering

Transíer rccord of making fake vouchers in compensation of 202.194.000 VNI) toinvestigating policc agcncy and Provincial People’s Procures to criminal pcnalties

Handling responsibilities for organi/.ations and individuals: Kim Thanh District

People’s Committee requires disciplining strictly for:

Chairman of the People’s Committee of Commune, including the follo\vingviolations: lack of accountability, loose budget management, has made a fraudulcnt act:Signing completely the preparation of fake documents for clearance compensation202.194.000 VND Complcte tầke withdrawal vouchers of 10.806.000 VND from thebudget, causing loss consequences of 10.806.000 VND; operating budget during the budgetovvncr of Dong Gia Commune, leading budget loss, less eíĩicient in using the budget.dishonest in reporting to Commune People's Council