It is undeniable that the achieved results of Public-Private Partnership (PPP) investment in recent years, however, the fact shows that the implementation of PPP projects still has many shortcomings. This is evidenced by the audit results, as well as the inspection results of a number of functional agencies. In the context of continuous improvement in PPP policy to attract investors and to enhance transparency in the implementation of PPP projects, the role of supreme audit institutions for PPP projects should be confirmed, especially when the Law of Public - Private Partnership (PPP Law) has been developed.
It is undeniable that the achieved results of Public-Private Partnership (PPP) investment in recent years, however, the fact shows that the implementation of PPP projects still has many shortcomings. This is evidenced by the audit results, as well as the inspection results of a number of functional agencies. In the context of continuous improvement in PPP policy to attract investors and to enhance transparency in the implementation of PPP projects, the role of supreme audit institutions for PPP projects should be confirmed, especially when the Law of Public - Private Partnership (PPP Law) has been developed.
Audit of PPP projects to ensure transparency and efficiency, avoiding the risk of loss of public assets
In the context that the state budget still faces many difficulties, the investment’s objectives to modernize the system of infrastructure and public services face many obstacles and participation of the private sector in this field is under PPP method has contributed to reducing the burden of public investment for the State. Recent PPP projects have contributed positively to the improvement of transport and urban infrastructure systems, sewage and waste treatment..., which promptly addresses the urgent needs of the people and of infrastructure for national socio-economic development.
However, besides the positive results, the monitoring results of the National Assembly as well as the results of inspection and audit of PPP projects show that their actual implementation is still limited and inadequate. Through auditing activity, SAV has proposed financial handling and detected a range of issues such as: the selection of contractors is not transparent and not competitive; inadequacies in charge rates, placement of toll booths, collection time; the construction quality is poor, while the exchanged land is designated, the land price is much lower than the market land price, thereby causing losses of assets and state budget. In addition, the supervision of contract implementation process is unclear about the basic information transparency of the signed PPP contract; sanctions for violations of investors as well as related agencies of the State are insufficient; many shortcomings in current regulations and policies related to PPP projects, which leads to proposals on replacement, amendment and supplementation of legal documents and regulations have been issued.
Representatives from National Assembly said that the products of PPP projects are public property. Therefore, in order to ensure the publicity and transparency in the management and provision of public services of the State with people and society, the draft PPP Law needs to state that the SAV has the right to audit the entire PPP project to promptly detect errors. Audit results for PPP projects by the SAV have been recognized and highly appreciated by the Party and National Assembly. Therefore, the audit of PPP projects should continue to be carried out comprehensively in order to be transparent for accurate investor payment and to share risks with investors during project implementation.
LAN PHUONG