Enhancing the role of inspection agencies in prevention and anti corruption from reality in hai duong province

- 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 proble

Author: Nguyen Quoc Khanh

Supervisor: Prof I)r L a r s - T o s t e n Eriksson

Local Supervisor: Dr Nguyen Khac Hung Class: MPPM - Intake 7

Hanoi, la n u ary - 2015

I made this thesis in the Master's prograin management from the University

of Economics - Hanoi National University and the University o f Uppsala in Svveden 11 conlìrms that the thesis cannot perform well without the guidance and support o f dedicated instructors: Prof Dr Lars - Tosten Eriksson, University of Uppsala - Sweden and Dr Nguyen Khao Mung, director o f Institute o f leadership and management (LM1), Chairman o f the Board o f Consulting and Development management JSC (MCAD) I sincerely thank to Prof Dr Lars - Tosten Eriksson and Dr Nguyen Khac Hung who has supported me during this thesis research

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

Thanks comrades and leaders o f Inspector Hai Duong, chief inspector o f Gia Loc District, Tu Ky District, Kim Thanh District, Thanh Ha District, Ninh Giang District Chi Linh Tovvn, Hai Duong City, thanks People’s Committee of Coinmunc, l u Ky District, Tran Phu Ward People's Committee o f Mai Duong;l.cadcrs and olíìcials o f the Departmcnts o f Finance, Construction, Transportation, Natural Resources and Environment o f Hai Duong Province and Mr Chairman Ninh Giang District, Nam Sach District, Chainnan o f Hai Duong City cooperation

to makc it I íầcilitate research, completed data collection to build o f 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 o f Institute o f Leadership and Management (LMI); Board Chairman

o f Management Consultancy and Development JSC (MCaD)

Sweden: Prof I)r L a r s - T o s t e n Eriksson

Uppsala University - Svveden

5- Thesis presentation date: 05-12-2014

6- Objectives: Corruption situation in Vietnam is novv very serious, have become the national evils, corruption is presented very where and any sector, with the tricks

is more and more 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 in sp cction o rg a n i/a tio n s in d etectin g and handling corruption, proposing

solutions to enhance the role o f 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 o f Hai Duong Province inspection

b Priinary infonnation and data collection methodology:

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

reality and role o f the current inspection agencics in the prevention and anti- corruption, what to do to strengthen the role o f inspection agencies in the prevention and anti-corruption? Which íactors affecting the quality o f inspection vvork in prevention and anti-corruption?

- Interviews some related obịects, consist of 3 Chairman o f District People Committee; 10-13 inspectors; 1-2 enterprises (Inspection Objects), one lawyer7.3 Data analysis methodology:

Based on the results o f thc inspection data on a number o f econoinic - social sectors, analysis to assess the eíYectiveness o f anti-corruption inspection activities,

\vhich tound the role o f inspection agencies in prevention and anti-corruption vvork;Analyze the role o f inspection in the State management, thc dircction and check o f the superior for knver levels;

- Expert Methods: During iinplementing the thesis, I ahvays get the support of experts inside and outside o f inspection industrv and o f the instructors at the University o f 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 o f the organi/.ation: Inspection Agency is an agency under the administrative agency o fth c same level

+ In term o f povver:

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

- Only have the riaht to recommend

- 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 o f budget managemcnl.

- Inspection in the íìcld o f taxation

- Inspection in the íìcld oí'basic construction investment

With the ĩramevvork o f this thesis cannot be deeply and comprehensively analy/cd to give thc solutions fully and eíYectively With the ability and expericnce

in thc inspection industry, vve íìnd that the above iìndings are completely correct, contribute to the inspection industry, and competent governmcnt agcncies to see the cause and role of inspection is limited in the prevention and anti-corruption in the past year it bluntly, therelbre can not prevent corruption

Whcn having conditions to continue further research, I hope to focus 1'urthcr

on the causes and consequences, motivations oí' corruption acts, the internal and extemal factors in the impact o f this phenomenon, the with experience in the country as vvell as intcrnationally to be able to make the more feasible solutions to build inspection sectors vvith hiah position and role in the prevention and anti- corruption in the province from now to the year o f 2030

A C K N O W L E D G M E N T S

S U M M A R Y OF M A ST E R THESIS

A B B R E V IA T IO N S

IN T R O D U C T IO N !

1 The reason for selecting the to p ic 1

2 The Research O b je c tiv e s 3

3 Research Q uestions 3

4 Research M eth o d o lo g y : 3

5 The lim itations: 4

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

C H A P T E R I: T H E O R IE S OF IN SPE C TIO N A N D A N T I-C O R R U P T IO N ; R H G U LA TIO N ON IN SPECTIO N A N D A N T I-C O R R U P T IO N 6

1.1 THEOR1ES OF IN SPE C TIO N A N D A N T I-C O R R U P T IO N 6

1.1.1 The concept o f c o rru p tio n : 6

1.1.2 The basic characteristics o f c o rru p tio n 9

1.1.3 Corruption identiíìcation 1 1 1.2 R E G U L A T IO N S ON IN SPE C TIO N , P R E V E N T IO N A N D ANT1-C O R R U P T IO 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 pow er 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 a w 1 7 1.3 FU N C T IO N S A N D DU TIES A N D P O W E R S OF IN SPE C TIO N SE C T O R IN PR E V E N T IO N A N D A N T I-C O R R U P T IO N (within the fram ework o f this thesis reíers only to adm inistrative level inspection from governm ent inspector to district level inspector) 21

1.3.1 The G overnm ent In sp ecto rate: 21

1.3.2 Provincial Inspectorate 24

C H A P T E R II: REAL SIT U A TIO N O F INSPECTION ACTIVITIES IN

PR E V E N T IO N A N D A N T I-C O R R U P T IO N IN HAI DUONG PROVINCE 28

2.1 S u m m ary ch aracteristics and social-econom ic situation in Hai D uong p r o v i n c e : 28

2.2 T he resuỉts o f anti-co rru p tio n inspection activities in a num ber o f social and eco n o m ic sectors o f Hai D u o n g province Inspectorate: 29

2.2.1 A n ti-co rru p tio n inspection in the íìeld o f budget m anagem ent at the level o f c o m m u n es, districts, cities and to w n s 29

2.2.2 A nti-co rru p tio n Inspectorate in the tìeld o f Land M anagem ent; 35

2.2.3 A n ti-co rru p tio n Inspection in the ĩield o f tax m anagem ent for e n te rp rise s 41

2.2.4 A n ti-co rru p tio n inspection in the íìeld o f basic construction in v estm en t m a n a g e m e n t 45

2.3 T he cause o f vio latio n s that leads to corruption e x ists 53

2.3.1 C au ses and o b jectiv e c o n d itio n s 53

2.3.2 C au ses and subjective c o n d it i o n s 54

2.4 Som e basic e le m e n ts reduce im pact o f anti-corruption inspection a ctiv ities 56

2.5 Som e o f the ch an g e s in perspective, perceptions, assessm ent o f individuals and o rg an izatio n s from etTectiveness o f in sp e c tio n : 58

C H A P T E R III: C O N C L U S I O N S A N D R E C O M E N D A T IO N S 63

3.1 C o n c l u s i o n s 63

3.2 R e co m m e n d a tio n s: Som e solutions for im proving the role o f inspection activities to prevent co rruption in Hai D u o n g province in the period o t '2015 - 2 0 3 0 63

3.3 O rientation for tưrther research:

R E F E R E N C E S

A P P E N D IX

6 7

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 each country As obstacles to the implementation of policies and laws of the State, resistance to social development, distorts economic relations, eroding ethical values Corruption is essentially a combination of tvvo factors: povvcr and self- interested The hanníul eíTects of corruption behavior is very large directly harm to the property of thc State, organi/ations and individuals in society, constraining economic

a n d s o c ia l d e v e l o p m e n t o f th e c o u n tr y a í ĩ e c t i n g r e v o lu t io n m o r a lit y , p u b lic S e r v ic e culture of oíĩicials, undermining the people’s trust vvith the State

In recent years, our country has made signiíìcant achievements in the constant economic and social innovation, social security is maintained, people's living standards is morc 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 in scale, increasingly serious nature, rcílectcd in the number

o f State’s assets are appropriated or loss; violators o f thc law, including many oHìccrs, puhlic oỉTicials even including somc ỉeađers, senior managers who liave

behaviors o f corruption, appropriation o f State assets Rcsolution o f the 9lh Party’ Congress has essessed: “corruption and degradation ol'ideology politics, ethics and liíestyle in a not-small part o f olTcials and Party mcmhcrs are very serious Corruption lasted for a long tiine in apparatus o f the political system and thc economic organi/ations is a major risk threatening the survival o f 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 and handling oí' corruption for the last time has still limited compared to the requirements and expectations o f the people Períecting the institution o f prevention and anti-corruption is still slow; propagation and disscmination, legal education has not met the requirements; officials and civil

mechanisms to protect and revvard whistleblowers Responsibility, leadership abilities, íìghting force o f some committees, pioneer, exemplary o f part o f officials and Party members are not high Many prevention and anti-corruption ineasures are

in term o f formalism Organization, operation capacity o f organizations and olììcials in charge o f prevention and anti-corruption is still inadequate The coordination relationship among the litigation implementation agencies and betvveen the litigation implementation agencies vvith the inspection and audit agencies in the detection and treatment o f cases, corruption cases sometimes are not close Corruption detection is still vveak, some corruption cases are detected and processed through the operation o f inspection and audit agencies is still less Corruption asset yield is very lovv Corruption remains seriously in many sectors and levels, many areas, especially in the íìeld o f íìnance and banking; management and land use; management and exploitation o f natural resources, minerals and public investment Sundry corruption situation is sho\vn in the bribery in tìekl of administration, public services, bribery vvhen dealing u ith the public authorities, still smarting The detection o f corruption reniains vveakncss The handling o f corrupt behavior in some cases expresses lenient; abusc remains to be disciplined, administrativcly sanctioned instead o f prosecutions, the accused prosecuted according 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 o f the most pressing issues o f today's society

Currently, the prevention and anti-corruption is the responsibility o f many diíTerent agencies 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) the govemment's inspection agency, the Ministry o f Public Security, Ministry o f Deíence, Institute o f the Supreme People's Procuracy, the Suprcmc People's Court, thc State Audit organizatỉon direct and guid to pcrtorm prevention and anti-corruption vvithin the assigned tunctions and tasks Each agency has diiTcrent roles, ỉunctions and tasks The rolc o f inspection agencies are

established under thc administrative level (Government Inspection, Provincial and district level Inspection) in the prevention o f corruption in recent years has taken its íunctions, but also must look into the fact that the corruption detection is not liigh Thereforc, as a leader o f inspection industry o f 1 ỉai Duong province with over 20 years o f vvorking, I \vould like to contribute my little opinion on the anti-corruption

w o r k , so I ch o se 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

l i m i t e d role o f t h e S ta te i n s p e c t i o n o r g a n i z a t i o n s in d e t e c t i n g a n d h a n d l i n g

corruption, identiíying the strengths, vveaknesses, opportunities and challenges

o f inspection organization in the prevention and anticorruption, through that proposing solutions to enhance the role o f the State Inspection organizations and anti-corruption measures

3 Research Questions

This thesis íocuses on answering the follovving questions:

- Situation, the status ofcorruption in Vietnam in general and in particular in Hai Duong province? And hovv is the role o f the State inspection agencies in detecting and preventing corruption?

- 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 o f the State, speech o f leaders o f Communist Party and the State, and inspection magazine o f the industry

4.2 Data collection methodology:

a Data secondary and collection method: Research documents and reports such as the report o f the People's Council and People's Committee o f Hai Duong province; the conclusion o f social-economic inspection o f Hai Duong Province

b Primary intbnnation and data collection methodology:

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

c o l l e c t in f o r m a t io n a b o u t t h e ir v ie v v s a n d t h e ir a s s e s s m e n t : c u r r e n t S ta te o f

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

2) Interviews some related objects, consist o f 3 Chairman o f District Pcople Committee; 10 -13 staff and inspectors; 1-2 enterprises (Inspection Objects), one lavvyer vvith contents related to the perspective and role o f the inspector, cause of inspection’s role is lovv in thc prevention and anti-corruption and rneasures to enhance the role o f inspectors in thc anti-corruption and corruption situation tbrecast vvith the period from now until 2030

4.3 Data analysis methodology:

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

\vork

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

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

5 The limitations:

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

r e la t e d to th c p o l i t i c a l institutions o f the S ta te and being c o n c e r n e d b y the Party a n d

State In thc framework o f this thesis, in tcrms o f the level, duration and limited tìnancial resources, 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 o f inspection, prevention and anti-corruption; regulation

on inspection and anti-corruption

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

Chapter III: Conclusions and Recommendations

CH AP TER I:

THE ORIES 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 o f any person with positions and povvers or assigned duties, povvers and abuse their positions and povvers, or duties assigned to profit-making Guidance documentation o f United Nations about International anti-corruption íìght (1969) dcíìned corruption in a

narrow range, that tak in e advantage o f State povver for private proílt - m aking.

Some countries worldwide have perceptions o f corruption as follows:

According to Svvedish researchers Assoc PhD Erlingsson1, picture of

issucs o f 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 fo r other people ”

World Bank deíìned: “Corruption is the abuse o f public poxver fo r private

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

corruption as "abuse o f public povvcr for private bcnelìt"

According to Mr Boris Begovic, Vice President, Centre o f Liberal-Democratic

Studies (CLDS) United States3, thc economic theory outlined tvvo basic vievvs on

corruption The íìrst view considers corruption as an cxogenous factor; second view

shovvs that corruption is endogenous íactor in politics If we apply one o f the tvvo

above views, we can divide corruption into three basic categories: corruption to

accelerate the schedule, administrative corruption and "bending the lavv" Although

in most cases, corruption may bc due to plunder the spoils, but the selíìsh

individuals seek to maximize their own intcrests as well as the complex and vague

lavvs, and the lack o f ieasibilitv as also are thc cause o f that situation

The concept o f 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 fo r 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 o f economic and social p o licy (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 r ld , th a t is t h e a d v a n t a e e o f p o s i t i o n , a u t h o r it y to c o m m i t illegal a c t s f o r p e r s o n a l

Resoure http://vielnunicsc.vietnain.uscm bassv.gov/doc coruplion cipc0305.hlm l

4 Victnam ese Dictionarv - Publishing llo u se o f Social Scicnees, llanoi, I98X

gain or in other vvords, corruption is the 11SC or usurp illcgally t h c public povvers or collectives resources.

Law on prevention and anti-corruption 20056 regulated: Corruption is the behavior o f persons with positions and povvers took advantage o f their positions and povvers tbr their proíìt Person with positions and povvers, limited to thosc vvho work in agencies, organi/.ations and units o f the political system; In othcr words, at the agency, oruani/.ation or unit that use budget, C ap ital and assets o f the State With such limitation is to focus on anti-corruption lìaht in the regions that occur most popular, suitable for the application o f measures to prevent and comhat corruption, such as: asset disclosure, openness and transparency in the activities o f agencies, organizations, and units that handle the responsibilities 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 self-defense and against reform The antỉ-corruption Jìght today threatened to do corruption.

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 f corruption

Meatnvhile, Japan, the u s, Hong Kon%, Australia and Singapore are the least level o f corruption.

Meanwhile, at the end o f last year, the report o f Transparency International (Transparency International) soid: after one year, a lot o f the economies were in crisis, the report noted that “corruption is a threat to economic recoverv and is a great challenge for countries in conỳlict"

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 o f 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 o f corruption that are the subịect to períorm all acts must have thcir positions and pcnvers The pcrson who have positions and povvers include olììcials and civil servants; offìcers, proíessional soldiers, dctense workers in agencies or units o f the People's Army; otììcers, non-commissioned officers and protcssional oíìlcers and professional noncommissioned officers - technical agencies, units o f the People's Police; leaders, managers o f S ta te 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 t a t i v e o f t h e State C a p ita l s h a r e in th c

cnterprise; person vvho is assigned to pcríorm thc dutics and powers during implementing their 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 thcy arc usually thc ones vvith the process o f work and dedication, therefore, they have more experience; are traincd systematically, are experts in many diíTerent tìelds; with wide relationship and certain social prestige and even economic strength These characteristics o f the corruption behavior make it dilTicuIt for the detection, investigation and trial o f corruption behavior

- The subject o f c o r r u p t io n , abuse their assigned p o s i t i o n s and powers:

"Abusing positions and powers," for- self - interested is second teature ofcorruption When períorming acts o f corruption, corrupt persons must use "position and their pcnvcrs" as a means to benetlt themselves, their íamilies or others This is 1'undamental to identily corrupt practices A person vvith positions and po\vcrs but

do not abuse their positions and powers, it is not corrupt behavior However, not all acts o f pcrsons vvith positions and powers, took advantage o f their positions and powers that are considered acts of corruption There is interference between this behavior with the behavior o f other criines, so it is necessary to take note vvhen distinguish acts ol corruption vvith other violations o f law

- The aim o f corruption behavior is self - intcrested: corruption behavior is intentional behavior 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 vvith 1'unctions; authorities have achievcd or can be achieved through corrupt practices Thus, when dealing with corruption behavior, not mandatory subịects o f corruption to gain beneíìts

The lavv also regulates thc assessment o f the nature and level o f the danger of corruption acts primarily bases on the determining the physical benetìts that corruption person achieved so that determines the degree o f Processing Material bcnetìts in the current market mechanisms expressed in many different íonns, if only bascd on thc discovered or recovered property to assess thc beneíits that corrupt persons achieved will not be enough Furthermore, the physical and mental

State assets to promote t h e i r reputation, c r e d i b i l i t y a n d b u i l d relationships t o m a k e

illicit protìts In this case, the purpose o f the act is both a physical beneíìts and mental benelìts

For the private sector, when corruption case occurs, the la\v has made certain adjustments However, there are also cases that people holding positions and po\ver

in organizations, private sector tìrms, linked up with thc degradation, deterioration person in the public sector or to take advantage o f the inlluence o f these people for personal interests In that case, they become accomplices to those vvho commit acts

of corruption be prosecuted for criminal liability

1.1.3 Corruption identifìcation.

Corruption is a common phenomenon globally Reactions to social corruption arc extensive in everywhere, every country, nation and mankind Anti- corruption requires close coordination betxveen the countries and intemationals in the world, especially in the context of globali/ation and integration

Idcntiíying corruption in Vietnam showed signs o f its complex; its characteristics are diverse, manitbld shades, types, extent, and consequences Scrious levels and diíTiculty o f corruption in Victnam is explaincd from the weakness o f institutions, the half-hearted in implementing and directing the degradation o f many otĩicials and civil servants in apparatus, even corruption is included in ịudicial activities, in the investigation, prosecution, trial and execution Corruption is present in legislation status, but the treatments arc vveak and formal, is

a cominon practice nowadays

'Iliere are small and pctty corruptions in harassment and causing inconvenience to the people, procrastination, procrastination in resolving administrative work at the grassroots level, the aim is to get money from people's pocket Trick of this kind of corruption is deliberately complicate simple things, taking advantage of cumbersome regulations, 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, the greater the level of corruption The transaction, the deal usually come broker agents,

intermediaries, creating unvvrittcn rules, íòrming the tacit rules, everything, all measures

to achieve 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 o f individual and group corruptions, known as group interests (or the illicit, illegal interests) I his is a form

o f organized corruption, have instigated, manipulated into organizations, institutions and policies with those who have thc responsibility, authority to settle This type o f corruption occurs in the project activities, procurement, contracts and economics, land, íìnance - bankina import and export, infrastructure, expansion o f industrial

p a r k s , u r b a n areas, e d u c a t i o n a l services, h e a lt h c a r e , a n d S c i e n c e - t e c h n o l o g y ,

business, and economic groups Land and land acquisition, clearance, clcarance conipensation, real estate business is just one o f those cases, the highlight situations

in the countless cases, the current situation o f corruption

The íầct that, in many places, povver and position solicitation has occurrcd

I here are other types o f "runs", from small to large and very large, which is running about soliciting the school, classes, to solicit the project and the ịudginent This is the focal point of the painful, hurning in the vvhirlpool o f money and power, in the purchase, sale, barter, crime and evils

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

Dcspite o f diíTerent expressions, dilTcrcnt levels, and corruption occurs as a syndrome plunder, exploitation o f rights and the money to be rich and illicit protlts

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; f o r the purposes o f self-interest.

Prevention and anti-corruption Lavv lists the following acts o f corruption:

- Assets embezzlement

- Taking bribes

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

- Abusing positions and povvers vvhile on duty, public S erv ice for-profit

- A bu sin g p ow er 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 o f agencies, organizations, or local units for self-interest

- A busing 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 Criminal Code 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 t e r m e d ia r ie s h a s r e c e i v e d o r w i l l r e c e i v e m o n e y , p r o p c r t y o r o t h e r m a t e r ia l

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

- Abusing their positions and powers to appropriatc property

- A b using positions and povvers vvhilc on duty, public Service for-profit m eans the individual for protlt or other personal inotives that abuse their positions and poxvers to act against services to cause the damage to interests o f the State, society, the rights and legitimate interests o f citizens

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

- Abusing their positions and povvers to iníluence others in order to profit: is the personal abuse their positions and povvers, directly or through intermediaries has received or will receive 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 promote persons vvith positions and powers to do

or not to do a job responsibility or directly related to their job or doing a job that is not allovved to do

- H o r g e r y in t h e w o r k : t h c in d i v i d u a l f o r p r o t ìt o r o t h c r p e r s o n a l m o t i v e s th a t

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

+ Repairing, falsifying contents o f papers and documents;

+ Making, issuing false papers;

+ Forging signatures o f persons vvith positions and powers

- Behavior "giving bribes, brihing brokers made hy pcrsons with positions and povvers to solve the ịob o f agencies, organi/ations, or local units for personal": This

is a new maniíestation o f corruption Because o f still existing the "ask - give regime" in many arcas, so many individuals rcpresenting agencies, organi/ations, or local unit sought to bribe people vvith positions and povvers in charge approving the programs, prọịects, 1'unding, budgets to be beneíìcial for agencies, organi/.ations, units and their local and through vvhich to achieve personal interests This behavior

is considered as corruption behavior It should bc noted that the giving bribes, bribing brokers are detìncd as oíTenses in thc Criminal Code that are not among the crimes o f corruption but the criminal group o f position Also giving bribes, brihing brokers are perlbrmcd hy actors with positions and povvers to tackle the job o f agencies, organi/ations, or local units for proiìt is considered as corruption act This behavior has to be governcd by lavv vvith criminal offenses respectively (if the act constitutes a crime), just as acts ot' corruption under the regulation ol' thc law on corruption

- Behavior "abuse their positions and pcnvers, illcgal use o f State property íbr personal benelìts": This is abusc o f taking advantage o íth e right o f the managemcnt

o f State assets to serve personal interests or a group o f people instead o f serving thc public interest Speciíic expression o f this behavior is often assets for lease such as íầctories, offices, cars and other assets for the purpose o f selí-interest The number

o f rental properties sometimes is very large

- Behavior "harassmcnt for selí-interest": Harassment is behavior that has been described in conceptual terms ỉt should be emphasi/.cd that the behavior appears more in the activities o f a number of govemment agencies, especially the administrative offíces, which directly solve the vvork o f citizens and enterprises A number o f oíĩicials and cmployecs do not pertorm their responsibility with the

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

o f loopholes or unclear procedures, even arbitrarily set the conditions that make it more dilTicult 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 to treat It can be considered harassment is behavior "ask for bribe” indirectly or at the level that is not really serious and can be used adminisírative remedies

- Bchavior "abusing their positions and povvers to protecl those vvho commit acts

of law violation 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 o f highcr level Thereíòre, the detection and handling o f corruption is extremely diffícult The protection for those who commit acts o f corruption, hindering the detcction process \vhcn corruption is concealcd under a lot o f different forms, such as postal mail phone, reminding, to avoid the responsibility implementation or having attitude or things that is not collaboration with the competent authorities

- B e h a v i o r " d id n o t p e r lb r m t a s k s o r mission fo r s e l f - i n t e r e s t ” is t h e a c t th a t

commonly known as the "gatckeepers" o f those who are responsible tor

management, especially some o f 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 o f inspcction agencies under the prevention and anti-corruption Law

a) Responsibility for coordination o f inspection agencies, State audit, investigation, procures, and the courts o f agencies, organi/ations or concemed units

Inspection Agency, the State audit investigation, procures and courts \vithin

their task range, povvers are responsible for coordinating with each other and

coordinate with agencies, organizations or units in detecting acts o f corruption,

handling those who has corruption behaviors and take responsibility beíbre la\v for

thcir conclusions, their decisions in the course o f inspection, audit, investigation,

prosecution and adjudication o f corruption cases

Agencies, organi/ations and concerned units arc responsible for íacilitating,

collaborating with inspection agencies, S ta te audit, and investigation procures and

courts in the detection and treatment o f people with corruption behavior

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

Inspection Agency, the State audit, investigation, procures and courts through

inspection activities, audit, investigation, ịudicial accountability act proactively

detect corruption, treatment within their jurisdiction or recommend the treatment as

prcscribed by lavv 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 the

responsibility to coordinate the prevention of corruption according to the tollovving

contents:

Regular exchange o f iníòrmation, documents and experience in the

prcvention and anti-corruption;

Transfer prolìlc o f 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 o f thc Anti-Corruption Law)

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

- In case o f disagreement with the resolution o f the investigating agency, the inspection agency, the State audit has the right to in fo n n 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 tr a n s t e r r in g p r o l ì l e o f c o r r u p t io n c a s e s t o t h e i n v e s t i g a t i n 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 i n s p e c t i o n agcncy a n d a u d it r e c o r d s S ta te t r a n s ie r c o r r u p t io 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 G eneral regulations:

The purpose o f inspection activities: to detect loopholes in thc mcchanisms

o í' m a n a g e m e n t , p o l i c i e s a n d l a w s t o make r e c o m m e n d a t i o n s to th e a u t h o r i/.e d S tate

agency the remedies; prevent, detect and handle violations o f thc lavv; help agencies, organizations and individuals to comply with thc provisions o f law; promotc positive factors; contribute to improving the eíìectiveness and eíĩiciency o f State management activities; protect the interests o f the State, the legitimatc rií^hts and interests o f agencies, organizations and individuals

T h e tunction o f State inspection agencies: State inspection agencies vvithin

the task, thcir pow crs im plem ent and heip authori/.cd State a g e n c ies to m anage State

inspection, the complaints and denunciations, and prevention o f corruption;

õÃiTiọc quoc " gìa hà nội ị

TRUNG TẦM THÒNG TIN

conducting inspections, solving complaints and denunciations, and prcvcntion of corruption as prescribed by lavv (Article 5 o f thc Inspcction Law 2010)

Principles o f 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 perform specialized tasks performed inspections

1.2.2.2 R eguỉations on Inspection A ctivities:

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

Heads o f State inspection agency make inspection decisions and establish inspection team to carry out thc inspection decision When considering it is

c) Request inspection object to providc information, documents and reports in

\vriting, cxplaining thc issues related to inspection contents; vvhen necessary, conduct an inventory o f assets relatcd to the content o f 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 vvhen appropriatc to immediately prevent violations o f 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 account that served as the inspector has grounds to believe that the object inspector behavior o f dispersed 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 work when seeing that the work cause serious damagc to the interests ot' the State, the legitimate rights and interests o f agencies, organizations and individuals;

i) To propose competent persons to temporarily suspend the enforcement o f

d i s c i p l i n a r y d e c i s i o n s , vvork tr a n s f e r , r e tir in g t o p e r s o n w h o is w o r k i n g fo r t h e S ta te

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

k) Report to the decision makers on the results o f inspections and inspectors

\vho are responsible for the accuracy, truthíulness and objectivity o f 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

or canceling recommendations immediately thc application o f such measures

3 When pertorming the duties and povvers specitìed in Item 1 o f this Article, the inspection team leader shall be responsihle hctbre the inspection decision maker

to their behavior and decision

1.2.2.4 The inspection team m em bers have the fo ỉlo w in g tasks a n d p o w ers:

- Perlbrm duties as assigned by the I lead o f 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 and individuals vvith information and documents related inspection contents to providc intbrmation and documents

- Inspection teams propose measures applicable duties and povvcrs oí the head

o f the inspection team as stipulatcd in Article 46 o f this Law to ensure the performance o f assigned duties

- Recommendations for handling other matters related inspection contents.

- Assigned task performance report to the inspection team leader, responsible

to the head o f the inspection team and the lavvs in tenn o f the accuracy, truthfulness and obịectivity o f the report contents

1.2.2.5 The inspectỉon d ecision-m aker has the right as fo ỉlo w :

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 using license when seeing that it is appropriate to immediately prevent violations o f the la\v or to veriíy facts as cvidence for the conclusion and

Processing;

d) T em porarily suspend or propose competent persons to suspend work when

it decms doing so to cause serious damage to the interests o f the State, the legitimate ris,hts and interests o f agencies, organi/.ations and individuals;

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

d i s p e r s c a s s e t s , d o n o t m a k e d e c i s i o n s o n w ith d r a v v a l o f m o n e y , a s s e t s o f t h e h e a d s

o f S ta te i n s p e c t i o n a g e n c i e s o r h e a d s o f State m a n a g e m e n t a g e n c i e s ;

g) Propose competent persons to temporarily suspend the eníorcement o f 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 civil servants \vho deliberately obstruct the inspection or not implement the rcquirements and proposals, decisions o f inspection;

i) Decide to handle vvithin their competence or propose competent persons to handle the inspection results; inspect and supervise the implementation o f the decisions o f the inspection;

k) Decide to withdraw money and property that vvere appropriated, unauthorized uscd or loss due to violations o f the law caused thc inspection object;

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

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

II) Conclusion on inspection contents;

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

1.3 FUNCTIONS AND DUTIES AND POW ERS OF INSPECTION S E C T O R

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 o f the Government, the Government is responsible for the management o f State inspection and settlement o f complaints and denunciations, and prevention o f corruption in the country; pertbrm inspcction activities, settlement o f complaints and denunciations, and prevention o f corruption

as prescribed hy law

General Government inspection is Government members, is the head o f the inspection scctor General Government Inspector is responsible to thc National Assembly, the Prime Minister on inspection, settlement o f complaints and dcnunciations, and prevention of corruption

Duties and povvers o f the Government Inspectorate

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

c o m p e t e n c e ; g u i d a n c e , c o m m u n i c a t i o n , c o n t r o l a n d i n s p e c t i o n o f th e

impleinentation o f legislation on inspection;

h) Schcduling inspection o f thc Government; to guide Inspectorate of the Ministry, the provincial inspector in construction and implementation o f 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 o f Interior to guide on organi/ational structure, staiTine and inspection levels, branches, conditions, criteria and appointment of Chief Inspector, Deputy Chief Inspectors, Inspectors levels, sector;

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

e) To monitor and supervise and inspect the implementation o f the conclusions and recommendations and inspection handling decision o f the Prime Minister, the Cìovemment Inspcctorate;

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

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

b) To inspect complicated cases involving m ultiple management responsibilities o f Ministry, the provincial People's Committee;

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

d) To check the accuracy and legality o f inspection conclusion and Processing

decision aíter inspection o f Ministers, heads o f ministerial-Ievel agencies

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

Committee when necessary

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

detecting signs o f lavv violation to be delivered to the Prime Minister; Decidc to

inspect again the case has been concluded bv Chairman o f the provincial People’s

Committee hut detecting signs ot’law violation;

c) Recommenđ Minister, request the Chairman o f the provincial People's

Committee to inspect in the management range o f the Ministry, thc provincial

Pcople's Committee when detecting signs o f law violation; if ministers, Chairman of provincial-levcl People's Committees disagrce, it has the right to make inspection

decision, report and be responsible to the Prime Minister about its decision;

d) Recommcnd the Ministers to suspend thc implemcntation or repeal o f regulations issued hy the Ministry which arc contrary to the provisions o f the

superior State agency, o f the General Government Inspectorate in tenn o f the

inspection; if the Minister does not to suspcnd or cancel such documents, it is

submitted to the Prime Minister for decision;

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

People's Committee th a t is a g a i n s t t h e r e g u l a t i o n s o f s u p e r io r s S ta te a g e n c i e 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 o f unlawful provisions detected through inspection;

g) Recommend to the Prime Ministcr to consider responsibilities, handle under the ịurisdiction o f the Prime Minister with lcgal violations discovered through inspections or not implement the conclusion, decided to handle the inspection; asks the head o f the agency or organization to take responsibility for revievving and

P ro cessin g undcr the management o f thc agcncies and organizations with legal violations discovered throuah inspection or not implement conclusions, decisions to handlc inspection

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

c) D irect the inspectio n, professional guidance for adm inistrative inspection inspectorates, district inspector;

d) Monitor and supervise and inspect the implementation o f the conclusions and recommendations and handling decision o f the inspection o f thc Chairman of the provincial People's Committee, Provincial Inspectorate

e) Inspect the implementation o f policies, laws and duties and powers of the departments o f the district People's Coimnittcc; inspection o f state-ovvned enterprises that is decidcd to establish by thc Chairman o f thc provincial Pcople's Committee;

r) Inspectorate coinplicated cases involvine, multiple responsibilities o f departments and district-level PeopIe's Committees;

h) Inspectorate other cases assigned by the chairman o f the provincial People's Committees;

y) Checking the accuracy and legality o f the inspection conclusion and

Processing decision after inspection o f Directors o f Departments, Chairman o f the district People's Committee as necessary

k) Iỉclp the provincial People's Committee to manage the State in the settlement o f complaints and denunciations; perform tasks o f solving complaints and denunciations in accordance vvith the law on complaints and denunciations

n) Help the provincial People's Committee to managc the State in the prevention and combating o f corruption; pertbrm the task o f preventing and combating corruption in accordance vvith the lavv on the prevention o f corruption

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

a) Decide the inspection vvhcn detecting signs o f law violation and shall hc responsible to thc Chainnan o f the provincial People's Committee in its discretion;

h) Decide to inspect again thc case that vvas concluded bv Department Director but dctecting signs o f law violation \vhcn assigned hy the Chairman o fth e provincial People's Committees ; decidc to inspect again the case that was concluded by the chairman o f the district People's Committee but detecting signs o f law violation;

c) Require Department Director, Chairman o f the district People's Committee

to inspect in the management scope o f the departments, the district People's Committee upon detecting signs o f law violation; if Department Director, Chairman

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

d) Recommend to Chairman oí the provincial People's Committee to solve the problem o f inspection; if recommendations are not accepted, the report to the General Government Inspectorate;

d ) Propose a u t h o r iz e d c o m p e t e n t S ta te a g e n c i e s t o a m e n d , s u p p l e m e n t o r

regulations promulgated in accordance with requirements management; recommendations suspension or cancellation o f unlawfu! provisions detected through inspection;

e) Recommend to Chairman o f the provincial People's Committee to consider and handle person undcr the management o f Chairman o f the provincial People's

C om m ittee has legal violations detected through inspections or p ertbrm concludes, handling decisions on inspection; asks the head o f the agency or organization

- District Inspectorate subject to the direction and administration of the Chairman o f the People's Committees o f thc same level and under the direction of vvork, inspection protessional guidance o f the provincial Inspectorate

- District Inspectorate has povvers:

a) Inspect the implementation o f policies, laws and duties and powcrs o f the speciali/cd agencies under the district People's Committee, communc People's Committee;

b) Inspcct complicated cases, relating to the responsibilities o f many specialized agencies o f the district People's Committee, eommune-level People's Committees;

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

d) Assist the district People's Committee o f State management o f the scttlement o f cornplaints and denunciations; perlbrm tasks solving complaints and denunciations in accordance vvith the lavv on complaints and denunciations

e) Assist the district People's Committee o f State management o f the prevention and combating o f corruption; perform the task of preventing and combating corruption in accordance with the law on the prevention o f corruption

- The Chief District Inspector has powers:

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

b) Propose competent State agencies to amend, supplement or regulations proinulgated in accordance with requirements management; recommendations suspension or cancellation of unlavvtul provisions detected through inspection;

c) Recommend to chairman o f the district People's Committee to solve the problem o f inspection; if recommendations are not accepted, report to thc Provincial Chief Inspector;

d) Recommcnd to chairman o f the district People's Committee to considcr and handle person under the management oi' Chairman o f the district People's Committee has legal violations discovered through inspections or not implcment the conclusion, handling decisions on inspcction; asks the head o f the agency or organi/.ation responsible for review and handle person under the management agencies and organizations with legal violations detected by inspection or hy the conclusions 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 o f administrative agencies o f 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 sam e 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

CH APTER 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

o f 1,662 km2, 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 Duong province íòrest area is 9,140 hectares, ofwhich 2384 ha of natural tbrests, and 6,756 hectares of reíòrestation

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

in d u s t r ia l p r o d u c t io n o f c o n s t r u c t i o n m a t e r ia ls in t h e p r o v i n c e , vvhile p r o v i d i n a r a w

m a t e r ia ls ío r t h e C en tral g o v e m m e n t a n d s o m e other p r o v i n c e s

Under the 2010 Inspection Law, inspcction agencies are organi/cd at the district, tovvn, city and provincial departm cnts At Ihc provincial level, there is a provincial inspcction The rcality has sho\vn that this inspection agency holds insuíTicient povver to detect a public corruption cases, cases have been detected but not competent enough to make prosecution under the lavv Ít can be determined that corruption cases are thcrc 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 o f State economic management causing serious consequences, 03 cases for abusing, authorities vvhile on duty (01 cases i'or embezzlement and abuse o f povvers vvhile on duty (thc total amount o f corruption is:

7,158,884,155 VND, o f vvhich 437.977,500 VNI) vvere recovered) But the cases

are not detected by inspection branch in ordcr to transler the file to process

*) Inspection agencies have m ade 1,873 adm inistrative i n s p e c t i o n s in the a r e a s

o f budíìct receipt and expense management, investment, construction, management

and use o f land and natural resources, puhlic policy implementation From these

inspections, manv mistakes in economic management have been revealed, the total

amount o f errors is 70.826 billion VND and recommendations are made to retrieve

12.170 m2 land A single case detected signs o f corrupíion in land vvhich was

proposed but not yet processed

2.2 The results of anti-corruption inspection activities in a number o f 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 an dton ns.

Situation: In many cases, making false record o f compensation clearance to

\vithdraw budget for unjust beneíìciaries vvith hundreds o f millions Dong such as in

Dong Gia Commune, Kim Thanh district; deliberately unprincipled tìnancial cost

\vith hundreds o f millions Dong, deliberately violates about economic inanagement

\vith the purposes o f appropriating illegally using public funds to beneíit

individuals and loss the State budgct.

Detection and inspcction conclusion: Octoher 2007 Hai Duong Province

Inspectorate inspectcd the budget receipt and expcnse management of People’s

Committee o f Dong Gia Commune, Kim Thanh District in 2004 to 2005 and

discovered the following results:

a) Total budget revenues 2 ycars in 2004 and 2005: 8.275.592.160 VND

h) Total budget expenditure 2 years in 2004 and 2005: 8.275.592.160 VND

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 o f Commune’s cxpenditurc also vvrong vvith regulation, regimc m ainly 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 land compensation; crops and land compensation for 24 households; to extend advance that not fullv executed

4) Wrontìly accounted such as in 2005 collecting land use riahts paid to the other income categories People’s Committce o f Commune reported dishonestly about tìnancial activity o f the receipts and expenditure account o f the People's Council, some incorrect data for settlcments reported up to the agency superiors were coníìrmed hy Peoplc's Committee o f Commune o f Treasury deducted budget

to paid interest for credit and personal)

5) Collecting money from land contribution o f people but do not timely contribute to the State Treasury, are not timely payment, collection ot" land money ultra payment o f 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 thc collection, management and use o f 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)

C ulculation unit: 1.000 VND

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Total rcvenue

Divided according to each budget level National

hudgct revenue

Provincial budget revenue

District Buđget revenue

Commune Budget revenue

1 Revenue híủuxx' State budget 1 15.403.162 502.109 10.318.403 60.771.691 43.810.959

Revenue management

through hudget

23.782.546 1 1.955.578 11.826.968 III Otherrevenue 4.520.330 1.949.258 2.571.072 IV

h) To summary the State budget expense in the district

The total amount spent in 2013: 433.100.798.000 VNI)

In that: + District Budget: 308.675.762.000 VND

+ Commune - Level Budget: 124.425.036.000 VNI)

C alculation unit: 1.000 VND

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2013

District Budget C o m m u n e B udge

A Balance the budget expenses 230.502.891 1 12.598.068

1 Investment and development expenses 10.482.104 49.210.768

II Regular expenses 198.762.712 50.490.178 III Spending on the transíer source 20.6S2.075 12.491.622

IV Spending for CTMT 576.000 405.500

B Supplementary expenditures for under —

level budgets

66.217.294

c Management costs over budget 11.955.578 1 1.826.968

I) Expcnses for electric support, altemative

vehicle support.

Total budget expenditure 308.675.762 124.425.036

Through the inspection found some o f violations, as follows:

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

- The dcbt collection organization is not yet determined, thc observancc of the tax obligation o f a number of organi/ations and individuals are poor it is not

effective to reach higher, more extended objects arrcars The balance ovvcd vvinning the auction o f land use rights o f the commune, the town has not payment on December 31st' 2013 is 14,526,514,867 VND.

- Som e c o m m u n e s, tow ns sign the contract for rent thc broadcast collection stationinstallation site, the amount that collected wcrc used to purchase assets, tools and supplies for the protessional division o f People’s Committee o f Commune but not accounted in the accounting books;

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

- Some revenues in thc district budíiet p a y m en t o f is incomplete and timely as stipulated

Some solutions, handling:

1) For v io latio n s in D ong G ia C om m une:

- In term o f 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 o f collective, so not to recommend rccovering

Transíer rccord o f making fake vouchers in compensation o f 202.194.000 VNI) to investigating 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 o f the People’s Committee o f Commune, including the follo\ving violations: lack o f accountability, loose budget management, has made a fraudulcnt act: Signing completely the preparation o f fake documents for clearance compensation 202.194.000 VND Complcte tầke withdrawal vouchers o f 10.806.000 VND from the budget, causing loss consequences o f 10.806.000 VND; operating budget during the budget ovvncr of Dong Gia Commune, leading budget loss, less eíĩicient in using the budget dishonest in reporting to Commune People's Council