The General Department of State Reserves speaks out about the contractor "running away" and not providing reserve rice.

Evaluate contractor reputation to increase competitiveness

Responding to Lao Dong Newspaper on January 22, Mr. Pham Viet Ha - Director of the Department of Reserve Management (General Department of State Reserves - Ministry of Finance ) said that in 2023, the State reserve departments will continue to assess the reputation of contractors in the process of organizing the selection of contractors to buy rice for national reserves.

Accordingly, in E-HSMT, reputation scores are divided into 3 levels including: Contractors (independent or joint venture) with no reputational violations: Evaluated at 50 points.

Contractors (independent or joint venture) who have signed rice supply contracts with regional State Reserve Departments but do not follow the schedule (late delivery) or deliver goods that do not ensure quality, causing the units to refuse to import the goods: are assessed at 20 points.

Contractors (independent or joint venture) that have been approved by the regional State Reserve Departments to win the bid for the national reserve rice supply package but do not proceed or refuse to complete the contract or have completed the contract but refuse to sign the contract: are evaluated at 0 points but are not disqualified.

“Thus, the assessment of contractor reputation is not to “type contractors” but to ensure fairness for all participating contractors (bidders with higher reputation will be given higher scores and vice versa), increase competition between contractors in bidding for purchasing national reserve rice and regional DTNN departments will select the contractor that best meets the provisions of the law on bidding and HSMT (meeting all technical requirements and bid prices).

Runaway contractors have been punished many times.

As Lao Dong reported, in 2023, the State Reserve Department of Thai Binh region fined 3 contractors who refused to perform rice supply contracts. These 3 contractors were also fined by other reserve departments.

Previously, the State Reserve Department of Thai Binh region (under the General Department of State Reserves - Ministry of Finance) organized a bidding for 6 bidding packages under the project to purchase 7,500 tons of rice for the national reserve in 2023.

After winning these bids, three contractors signed contracts but then failed to perform and were fined by the State Reserve Department of Thai Binh region.

In package 1, the winning bidder, Khai Minh International Trading Company Limited (Khai Minh Company), located at HH4 - Nam An Khanh Urban Area, An Khanh Commune, Hoai Duc, Hanoi, was fined VND 581,175 million. This is the amount of money to guarantee the performance of the contract to supply 900 tons of rice for national reserves in 2023.

In package No. 2, the winning bidder is Dong Phuong General Trading Company Limited (Dong Phuong Company), located at the house of Ms. Bui Thi Quy, Kim Village, Vu Lac Commune, Thai Binh City, Thai Binh Province, was administratively fined 655 million VND as a guarantee to perform the contract to supply 1,000 tons of national reserve rice in 2023.

In package No. 4, the winning bidder is Van Loi Company Limited (Van Loi Company), located in Bao Cuu village, Thanh Chau ward, Phu Ly city, Ha Nam province, represented by Mr. Phan Doan Tien, position of Director, was administratively fined VND 1,179 billion as a guarantee to perform the contract to supply 1,800 tons of national reserve rice in 2023.

Expanding the investigation, the reporter noted that in 2023, these 3 contractors were not only punished by the State Reserve Department of Thai Binh region but also by other reserve departments.

For Khai Minh Company, there are up to 4 penalty decisions in 2023.

Most recently, on December 25, 2023, the Hanoi Regional Reserve Department issued a notice to fine this company nearly VND 600 million. The reason is that this company refused to fulfill the contract to supply 800 tons of national reserve rice in 2023.

On October 18, 2023, Khai Minh Company was also notified by the State Reserve Department of Ha Nam Ninh region of violating the contractor's reputation. Accordingly, the State Reserve Department of Ha Nam Ninh region announced that this unit had signed a contract but did not perform the contract.

On October 4, 2023, the State Reserve Department of Ha Bac region also posted information that Khai Minh Company broke the contract to buy 940 tons of rice to import into the national reserve warehouse of Lang Giang State Reserve Department.

The contractor Dong Phuong Company also received 3 penalty decisions. On October 2, 2023, the Hanoi State Reserve Department announced that Dong Phuong Company and Van Loi Company both violated the law by refusing to supply 2,200 tons of national reserve rice in 2023. Of which, Phuong Dong Company was 1,000 tons, Van Loi Company was 1,200 tons. The Hanoi State Reserve Department fined Phuong Dong Company 665 million VND, Van Loi Company 786 million VND.

In addition, Dong Phuong Company was fined by the Northwest State Reserve Department on October 10, 2023 for similar behavior.

Source