New Decree on ODA and concessional credit expenditure control

12/10/2018, 16:00 PM

The Government has issued Decree No. 132/2018/ND-CP amending and supplementing a number of articles of Decree No. 16/2016/ND-CP dated 16/3/2016 on management and use of Official Development Assistance (ODA) and concessional credit granted by foreign sponsors, in which the regulation on ODA and concessional credit expenditure control was supplemented.

Accordingly, the control and payment of ODA and concessional credit (expenditure control) shall comply with applicable regulations on State capital budget. The State Treasury of Vietnam at all levels control the payment dossier of projects or project components disbursed by State budget; the projects applying the mechanism of partial disbursement, partial on-lending according to percentage and projects eligible for on-lending of the provincial-level People's Committee (1).

The Ministry of Finance authorizes the on-lending agency to control the payment dossier of projects or project components applying the mechanism of full on-lending (2).

For other programs and projects not yet identified under (1) and (2) above, The Ministry of Finance shall determine the appropriate expenditure control agency and ensure the principle that there are no two expenditure control agencies controlling the same spending activity of a project.

Formally, pre-expenditure control is that the expenditure control agency inspects, confirms the legitimacy and validity of expenses before the project owner pays to contractors and the beneficiaries. Pre-expenditure control is applied to the expenses not covered in (3) below.

Post-expenditure control is that the expenditure control agency inspects, confirms the legitimacy and validity of expenses after the project owner pays to contractors and the beneficiaries. Post- expenditure control is applied to the following cases: Payment from advance account to the contractors and the beneficiaries, except advance account which the Ministry of Finance is the account holder applying pre-expenditure control.

Transfer from advance account to imprest account to pay independent audit cost after closing advance account; transfer from advance account to the second-level account for the projects of many management levels; expenses from the second-level account for project management activities in the budget to be approved by the authorized. (3).

Within 30 days of the withdrawing for payment, the project owner must complete payment dossier to send the expenditure control agency to confirm to perform the next payment. Where necessary, the project owner has the right to deal with the contractors applying pre-expenditure control form for the expenses referred to in (3) above and submitting to control agency to coordnate implement.

Source: thuvienphapluat.vn

Comment(s)