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Transcript of Vietnam Report.13 6
FINAL REPORTON-SITE RANDOM INSPECTION
Hanoi - 2011Ta Minh Phuong-Vietnamese Consultant
TABLE OF CONTENT
SECTION I: GENERAL............................................................................11.1 BACKGROUND........................................................................................................................................1
1.2 SCOPE OF WORK........................................................................................................................................1
EXECUTIVE SUMMARY.....................................................................................................................................2
1.3 METHODOLOGY..........................................................................................................................................4
SECTION II: INSPECTION FINDINGS OF SUB-CONTRACTS.......52.1 DETAILS OF SUB-CONTRACTORS INSPECTED......................................................................................5
2.2 SUB-CONTRACTORS PROFILE..................................................................................................................72.2.1. Mekong Co Ltd.,...................................................................................................................................72.2.2. All Section of Investment and Trading Company (ASIT)....................................................................72.2.3. Vietnam Industry and City Development Corporation (ICD)..............................................................82.2.4. Vietnam Institute of Industrial Chemistry............................................................................................82.2.5. Rich Media Co., Ltd.............................................................................................................................82.2.6. Vietnamnet Global Media JSC.............................................................................................................92.2.7. Consultation and Construction Centre..................................................................................................92.2.8. Quang Ngai Construction and Investment Consulting JSC................................................................102.2.9 Construction Investment and Development Consultancy Company...................................................102.2.10 Trung Long Co., Ltd..........................................................................................................................102.2.11. TEDIPORT.......................................................................................................................................102.2.12. HYMENET.......................................................................................................................................11
2.3 INSPECTION RESULTS..............................................................................................................................122.3.1. Mekong Co., Ltd.................................................................................................................................122.3.2.All Section of Investment and Trading Company...............................................................................122.3.3.Vietnam Industry and City Development Corporation (ICD).............................................................132.3.4.Vietnam Institute of Industrial Chemistry...........................................................................................132.3.5.Rich Media Co., Ltd............................................................................................................................142.3.6. Vietnamnet Global Media JSC...........................................................................................................142.3.7. Consultation and Construction Centre................................................................................................152.3.8. Quang Ngai Construction and Investment Consulting JSC................................................................152.3.9. Construction Investment and Development Consultancy Company..................................................162.3.10. Trung Long Co., Ltd.........................................................................................................................162.3.11. TEDIPORT.......................................................................................................................................172.3.12. HYMENET.......................................................................................................................................17
SECTION III: RECOMMENDATIONS...............................................183.1 RECOMMENDATION...............................................................................................................................18
SECTION I: GENERAL
1.1 BACKGROUND
This report has been issued as per the terms of reference set out in the scope of the
consultancy service/ assignment of carrying out Random Inspection regarding Sub-contract in
Viet Nam (for F.Y 2009 & 2010), undertaken by consulting team for Japan International
Cooperation Agency (hereinafter referred to as “JICA” or “ the organization”) as per the
Service Agreement & Letter of Award dated April 15, 2011. We understand that the purpose
of this random inspection was to confirm whether or not the Consultant and sub-contractor
under inspection executed sub-contracts appropriately in accordance with JICA Guidelines.
Consulting team comprising of two members Mr. Ta Minh Phuong & Mr. Nguyen Van Tung
carried out the on-site inspection of sub-contract along with Mr. Shijbata and Mr. Sarashina of
JICA from Japan.
1.2 SCOPE OF WORK
The scope of our assignment included following general procedures:
Understanding the prime key contract and sub-contract to be inspected in agreement
with JICA.
Getting acquainted with JICA’s Guidelines for Local sub-contracting procedures in
contracts with consultants.
Preparing questionnaire for inspection of sub-contractor in accordance with JICA
Guidelines.
Making up the effective work schedule for on-site inspection.
Participating in the meeting about the on-site inspection.
Visiting the selected sub-contractors and executing necessary on-site inspection
through the questionnaire.
1
EXECUTIVE SUMMARYJICA assigned Mr. Ta Minh Phuong and Mr. Nguyen Van Tung to conduct as the third party random inspection regarding sub-contracts in Viet Nam for FY 2009 & 2010 with the purpose to confirm whether or not the Consultant and sub-contractor under inspection executed sub-contracts appropriately in accordance with JICA Guidelines when Consultant conclude sub-contract with sub-contractor in the survey site. According, twelve sub-contractors in Viet Nam were inspected and the summary results of such inspection are as follows:
Contract Final Report
Commercial
Invoice
Value added Tax
Invoice
Receipts Bank Statements
1 MeKong Co., Ltd No. 97, TranQuoc Toan Str.,Hoan Kiem, HaNoi
The JanpanEconomic Research Institute Inc
√ √ √ √ √ √ - We confirmed the substantiality of the sub-contractors & thesub-contract; we confirmed the authenticity of the sub-contractawarding method & procurement procedures in accordancewith JICA Guidelines, and we confirmed that the payments ofsub-contract were proper done.
2 All sections of Investment and Trading Company Ltd
G18, Alley 130,Trung Kinh Str.,Yen Hoa, Hanoi
Yachiyo Engineering Co., Ltd
√ √ √ N/A(not
available)
√ N/A (lost) - We confirmed the substantiality of the sub-contractors & thesub-contract but not ensure for next contracts with JICA in thefuture because the competence of sub-contractor was limited(office and staff); we confirmed verbally that the payments ofsub-contract were proper done.
3 Viet Nam Industry and City Development Corporation (ICD)
Room 205, 2ndFloor, Yen Hoa,Cau Giay,. Ha Noi
Yachiyo Engineering Co., Ltd
√ √ N/A (lost)
Not issued N/A (lost) N/A (lost) - We confirmed the substantiality of the sub-contractors & thesub-contract; we confirmed the authenticity of the sub-contractawarding method & procurement procedures in accordancewith JICA Guidelines, and we confirmed verbally that thepayments of sub-contractor were proper done;
4 Vietnam Instituteof IndustrialChemistry
No.2 Pham NguLao Str., HoanKiem Dist. HaNoi
Yachiyo Engineering Co., Ltd
N/A (lost) N/A (lost) N/A (lost)
N/A(not
available)
N/A (lost) N/A (lost) - We confirmed the substantiality of the sub-contractors; We only confirmed verbally to the authenticity of sub-contract and thesub-contract awarding method & procurement procedures inaccordance with JICA Guidelines, and we confirmed verballythat the payments of sub-contractor were proper done;.
5 Rich Media Co.,Ltd
Suite 504, 17T7building, HoangDao Thuy Str.,Cau Giay, Ha Noi
Yachiyo Engineering Co., Ltd
√ √ √ N/A (Not available)
√ √ - We confirmed the substantiality of the sub-contractors & thesub-contract; we confirmed the authenticity of the sub-contractawarding method & procurement procedures in accordancewith JICA Guidelines, and we confirmed that the payments ofsub-contract were proper done
Summary inspection resultsStatus of some documents# Sub-Contractor Name
Sub-Contractors’
Address
Contractor
2
Contract Final Report
Commercial
Invoice
Value added Tax
Invoice
Receipts Bank Statements
Summary inspection resultsStatus of some documents# Sub-Contractor Name
Sub-Contractors’
Address
Contractor
6 Vietnamnet Global Media JSC
Suite 502, TDLBuilding, 22 LangHa, Dong Da, HaNoi
Yachiyo Engineering Co., Ltd
√ √ √ Not issued √ N/A (lost) - We confirmed the substantiality of the sub-contractors & thesub-contract; we confirmed the authenticity of the sub-contractawarding method & procurement procedures in accordancewith JICA Guidelines, and we confirmed verbally that thepayments of sub-contract were proper done.
7 Consultation andConstruction Centre
No. 14 NguyenTan Thanh Str.,Hoi An, QuangNam
Sanyu Consultant INC
√ √ √ √ √ √ - We confirmed the substantiality of the sub-contractors & thesub-contract; we confirmed the authenticity of the sub-contractawarding method & procurement procedures in accordancewith JICA Guidelines, and we confirmed that the payments ofsub-contract were proper done.
8 Quang NgaiConstruction andInvestment Consulting JSC
No. 112, PhanDinh Phung Str.,Quang NgaiTown, QuangNgai Province
Sanyu Consultant INC
√ √ √ √ N/A (lost) √ - We confirmed the substantiality of the sub-contractors & thesub-contract; we confirmed the authenticity of the sub-contractawarding method & procurement procedures in accordancewith JICA Guidelines, and we confirmed that the payments ofsub-contract were proper done.
9 Construction Investment andDevelopment Consultancy Company
171 Le Loi Street, Quang Ngai City
Sanyu Consultant INC
√ √ N/A (lost)
N/A(Not
available)
N/A (lost) √ - We confirmed the substantiality of the sub-contractors & thesub-contract; we confirmed the authenticity of the sub-contractawarding method & procurement procedures in accordancewith JICA Guidelines, and we confirmed verbally that thepayments of sub-contract were proper done.
10 Trung Long Co.,Ltd
171 Le Loi Street, Quang Ngai City
Sanyu Consultant INC
√ √ √ √ √ √ - We confirmed the substantiality of the sub-contractors & thesub-contract; we confirmed the authenticity of the sub-contractawarding method & procurement procedures in accordancewith JICA Guidelines, and we confirmed that the payments ofsub-contract were proper done.
11 TEDIPORT 278 Ton DucThang, Dong DaDistrict , Hanoi
Joint Venture-Oriental Consultant Co.,Ltd &Padeco Co.,Ltd
√ √ √ √ √ √ - We confirmed the substantiality of the sub-contractors & thesub-contract; we confirmed the authenticity of the sub-contractawarding method & procurement procedures in accordancewith JICA Guidelines, and we confirmed that the payments ofsub-contract were proper done
12 HYMENET 62 Nguyen ChiThanh Streed,Dong Da, Hanoi
Joint Venture -Oriental Consultant Co.,Ltd and PadecoCo., Ltd
N/A (lost) N/A (lost) √ N/A(Not
available)
√ N/A (lost) - We confirmed the substantiality of the sub-contractors; weconfirmed verbally to the authenticity of the sub-contractawarding method & procurement procedures in accordancewith JICA Guidelines as well as amounts of payment, and weconfirmed verbally that the payments of sub-contract wereproper done.
3
Note:
√: certifying sub-contractor’s documents matching with JICA documents
Workdone:
Obtaining relevant documents, information & data and analyzing them, as required; to
make the inspection work more effective.
Wrapping up the result of on-site inspection of twelve targeted sub-contractors in Viet
Nam
Preparing final report on on-site inspection of sub-contractors including
recommendation for effective & efficient execution of next on-site inspection.
1.3 METHODOLOGY
During the course of our on-site inspection work, we carried out following procedures:
Holding entry meeting & on-site inspection meetings with the key officials of the sub-
contractors and explaining the purpose of the inspection.
Confirming the existence of sub-contractors by reviewing the administrative
documents like sub-contractors’ profile, Certificate of Business and Business license,
the organization chart, Schedule of officers, Directors, employees and their respective
titles and other relevant documents ,etc.
Obtaining an understanding of the sub-contract and turn-key project from the sub-
contractors inspected
Confirming whether the laid down election procedures of sub-contract (like bidding,
shopping, direct contract and shopping, proposal or direct contract) were followed by
JICA Consultant in accordance with JICA Guidelines by verifying relevant
documentary evidence like copies of public announcement, invitation letter, minutes/
records of bidding meetings; bidding/ negotiation correspondence etc.
Confirming that the records, agreements and documents maintained by the sub-
contractor are same as those submitted by JICA Consultants.
Reviewing modes & method of payment by Consultant to the sub-contractors be
verifying deposit/bank transfer/ credit advices, bank statements, Cash on hand receipt,
etc.
Confirming the substantiality of sub-contracts by the final deliverables.
Taking necessary photographs of the office premises of sub-contractors and final
deliverables.
Collecting necessary documents and data from the sub-contractors relevant for the
inspection( hard copies or the electronic versions).
4
SECTION II: INSPECTION FINDINGS OF SUB-CONTRACTS
2.1 DETAILS OF SUB-CONTRACTORS INSPECTED
The detail of the sub-contracts inspected under our scope of work are as follows:
No. Sub-Contractor’s Name
Contractor’s Name Interviewee’
s Name
Position Sub-contract
Amt
Project’s Name Work of sub-contractors
1 MeKong Co., Ltd The Japan Economic Research Institute Inc
Mr. Hoang
Tien Loi
Director $ 72,240
(one contract)
The Project for Institutional
Capacity Development of
Vietnam Development Bank
(VDB) (second year)
Consulting on institutional
Capacity Development of
VDB
2 All sections of Investment and Trading Company Ltd
Yachiyo Engineering Co., Ltd
Ms. Chu Thi
Thu Ha
Senior
Expert
$50,788
(one contract)
3R Initiative in Hanoi City
towards the Development of a
Sound Material-Cycle Society
Study on collection efficiency
with container transportation
cars and wheeled carts
3 Viet Nam Industry and City Development Corporation (ICD)
Yachiyo Engineering Co., Ltd
Mr. Le Van
Doanh
Director $ 31,724
(One contract)
3R Initiative in Hanoi City
towards the Development of a
Sound Material-Cycle Society
Study on collection efficiency
with container transportation
cars and wheel carts
4 Vietnam Institute of Industrial Chemistry
Yachiyo Engineering Co., Ltd
Mr. Hoang
Van Hoan
Vice
Director
$15,070
(one contract)
3R Initiative in Hanoi City
towards the Development of a
Sound Material-Cycle Society
Confirm the quality of
compost and expand compost
demand
5 Rich Media Co., Ltd Yachiyo Engineering Co., Ltd
Mr. Nguyen
Minh Hai
Director $ 8,624
(One Contract)
3R Initiative in Hanoi City
towards the Development of a
Sound Material-Cycle Society
Strengthening the function of
environmental education
center in Cau Dien Compost
Plant
6 Vietnamnet Global Media JSC
Yachiyo Engineering Co., Ltd
Ms. Nguyen
Thu Huong
Vice
Director
$89,096.92
(Two contracts)
3R Initiative in Hanoi City
towards the Development of a
Sound Material-Cycle Society
Strengthening Publicity and
Production of PR Tools;
Holding and preparation of PR
Events
7 Consultation and Sanyu Consultant Mr. Le Tan Director $ 62,100 The Project for Rehabilitation of Implementing Topographic
5
Construction Centre INC Son
(One contract)
small-Scale Reservoirs Quang
Ngai Province in Socialist
Republic of Vietnam
and Geological Surveys and
Detailed Design Works for Tri
Binh Revervoir
8 Quang Ngai Construction and Investment Consulting JSC
Sanyu Consultant INC
Mr. Nguyen
Duc Minh
Director,
Chairman
$153,200
(Three contracts)
The Project for Rehabilitation of
small-Scale Reservoirs Quang
Ngai Province in Socialist
Republic of Vietnam
Implementing Topographic
and Geological Surveys and
Detailed Design Works for
Mach Dieu, An Hoi, Nam
Binh Thuong Revervoir
9 Construction Investment and Development Consultancy Company
Sanyu Consultant INC
Mr. Bui Quy Director $125,000
(Two contracts)
The Project for Rehabilitation of
small-Scale Reservoirs Quang
Ngai Province in Socialist
Republic of Vietnam
Implementing Topographic
and Geological Surveys and
Detailed Design Works for
Hoc Mit, An Tho Revervoir
10 Trung Long Co., Ltd Sanyu Consultant INC
Mr. Nguyen
Van Thong
Director $126,700
(Two Contracts)
The Project for Rehabilitation of
small-Scale Reservoirs Quang
Ngai Province in Socialist
Republic of Vietnam
Implementing Topographic
and Geological Surveys and
Detailed Design Works for
Hoc Nghi, Huan Phong
Revervoir
11 TEDIPORT Joint Venture with Oriental Consultant Co., Ltd and Padeco Co., Ltd
Mr. Bui Anh
Tuan
General
Director
$276,300
(Three contracts)
The Preparatory Survey on Lach
Huyen Port Infrastructure
Construction
Implementing the Subsoil
Condition survey, current
observation, Hydrographic
Port
12 HYMENET Joint Venture with Oriental Consultant Co., Ltd and Padeco Co., Ltd
Nguyen Dinh
Luong
Director $2,500
(One Contract)
The Preparatory Survey on Lach
Huyen Port Infrastructure
Construction
Implementing revision of
Lach Huyen gateway Port
6
2.2 SUB-CONTRACTORS PROFILE
The brief profile of sub-contractors inspected is as follows:
2.2.1. Mekong Co Ltd.,
Mekong Co., Ltd under National Auditing Group was found in 2002. Mekong co., Ltd is a
member of Integra International, a network firm operating with over 2,500 experienced
professionals in over 100 offices worldwide. Mekong is one of the top 25 auditing firms
ranking in number of CPAs (Certified Public Accountants) in Viet Nam and one of the 35
auditing firms accepted by State Securities Commission to provide audit service to listed
entities in Viet Nam. Mekong co., Ltd operated with slogan “Integrating Values”.
Me Kong Co., Ltd provide service such as Finance and Investment consultancy (Due
Diligence, Operation diagnostic, Merger & Acquisition, so on), Growth and Innovation
Consultancy (Project management, Strengthening management capacities, so on) Tax and
Accounting Consultancy (Accounting outsourcing, Tax consultancy and declaration, so on)
Mekong co., Ltd has provided service to Vietnam Development Bank (VDB), Vietnam Bank
for Agriculture and Rural Development (Agribank), Japan Economic Research Institute,
Development Bank of Japan (DBJ), World Bank, Asian Development Bank, French
Development Agency, Swedish International Cooperation Agency (SIDA), UK Department
for International Development, and so on.
2.2.2. All Section of Investment and Trading Company (ASIT)
ASIT Co., Ltd found in 2006, the company relied mostly on individual relationship among the
company’s members.
Company’s Mission is to create an independent consultancy organization specialized in
technology, environment treatment and environmental impacts assessment to help Vietnam
small enterprises to catch up the business opportunities, improve the competitiveness as well
as the company would be the trusted address to conduct survey, research for decision making.
ASIT provide service such as: Consulting and investment for the environment; Consulting
and researching for development and application of environmental treatment technology;
Consulting, researching and implementing projects on the environmental, social and
economic; Carrying out service activities on Environmental Impacts Assessment
(EIA);Consulting and doing services of environmental pollution treatment; Consulting,
training and transferring technology in environmental field; Implementing service
Some clients such as: Phong Phu Textile Company; PKV Rostral and Industrial Investment
Consultant Joint Stock Company;
7
2.2.3. Vietnam Industry and City Development Corporation (ICD)
Vietnam Industry and City Development Corporation (ICD) established in 2008 under
Certificate of Business No. 0102632287.
ICD’s scope of Business: Manufacturing and Trade plastics and composite product, industrial
and transportation product. Automobile, equipment in industrial and construction section;
collecting and transport, process all kinds of wastes, export and import service; restaurant and
hotel service; Traveling; construct and upgrade the vehicle;
ICD has been cooperated with many international organizations in Sweden and France
2.2.4. Vietnam Institute of Industrial Chemistry
The Precursor of Vietnam Institute of Industrial Chemistry was the laboratory of the former
Ministry of Industry and Trade which was firstly established in 1955 on the basis of the
laboratory of the former Indochina Mining Department.
In 1956, the laboratory became Industrial Research Institute and was renamed into institute of
Chemistry in 1957 and renamed into Institute of Industrial Chemistry. Since 2007, it has been
operating under the current name Vietnam Institute of Industrial Chemistry. The Institute has
been strong cooperation with well-known scientific and technological centers in France,
Russia, Germany, Canada, USA, Republic of Korea, Japan, China, etc
The Institute is under Vietnam National Chemical Group with following principal activities:
Studying, building strategies, policies, development project, economic-technical criteria,
regulation, standards in chemical field; Conducting research on chemical science and
technology, developing and applying technical advances including fundamental research,
applicable research, pilot production to create technologies, products, materials and
equipment designs as well as manufacture of equipment using in the chemical industry and
other economic sectors; Analyzing and controlling natural resources, minerals, chemicals, raw
materials, and final products; providing services, consultation, supervision and evaluation on
environmental impact and treatment technologies; Training and improving the knowledge of
management, production, business for chemical specialist.
2.2.5. Rich Media Co., Ltd
Rich Media Co., Ltd established in 2005. The company provide services for more than 1,000
enterprise and local organization as well as international ones in many fields such as Finance,
Banking, Insurance, Education, Real estate, Pharmacy, environment, so on (Examples:
8
Vietnam airlines, Petro vietnam Construction Joint Stock Company (PVC), Petrolimex joint-
stock Insurance Company (PJICO), Vietnam Television (VTV), Military Bank (MB),
Vietnam Posts and Telecommunications Corporation (VNPT), Vietnam Electricity (EVN),
CISCO, British Council;
Rich Media Co., Ltd provides many services in Marketing, Events Preparation and Held,
Public Relationship, Advertising, Market research with 7R strategy (Rich Power, Rich Events,
Rich Online, Rich V++, Rich Outdoor, Health Magazine, Rich Care).
2.2.6. Vietnamnet Global Media JSC
Vietnamnet Global Media JSC is established in 2008, one of the leading providers of
advertisement and communication service with the main services as follow: Organization of
Events, Audio-visual and multi-media Products (Corporate films, TV Programs, Game show),
Design-Printing- Publication, Public relations/ Media Relations, Consultancy package for
Bran development strategy.
Vietnamnet Global Media JSC with new name being ID Media JSC has provided service to
many locally, globally famous organizations such as: Vietnam Posts and Telecommunications
Corporation (VNPT), Vinaphone, Viettel, Bao Viet Corporation, Vietnam Commercial Bank
(VCB), ANZ Bank, Great Eastern, VINASAT, VINACONEX;
Vietnamnet Global Media JSC’s Scope of Business consist of service in Advertising, Event
holding, Public relationship, Market research, database, entertainment on TV, communication
equipment, training of MC and Model, Publication, Designs, Restaurant, Hotel, Travelling, so
on.
2.2.7. Consultation and Construction Centre
The Consultation and Construction Centre – Central Region College of Technology –
Economics and Water Resources, is established in 1999, in accordance with Decision no.
92/1999/QĐ-BNN/TCCB issued by Ministry of Agriculture and Rural Development on
31/05/1999;
The Centre provides services as follow: Preparing investment Project (Feasibility Report),
Project Estimate of Quantity in Irrigation, Drainage system in City and Rural; Topographic
and Geographic Survey, Testing in Project, Land Map, Soil and Sub-Soil Testing, Analyst,
Irrigation Project and Design appraisal, Executing the Irrigation, drainage works.
9
2.2.8. Quang Ngai Construction and Investment Consulting JSC
Quang Ngai Construction and Investment Consulting JSC is established in 1998 from
equitization State-owned Quang Ngai Consultation and Construction Company. The company
is one of the biggest enterprise in Quang Ngai Province in following fields: Industrial and
Civil Works, Transportation, Irrigation, Electricity, Project Preparation, Survey; Design,
Estimate; Project and Design Appraisal; Project Management; Appraisal of Tender dossiers;
so on.
The company holds 3 Subsidiaries (Consultancy on Civil Work, Consultancy on
Transportation, Consultancy on Irrigation)
2.2.9 Construction Investment and Development Consultancy Company
Construction Investment and Development Consultancy Company is found in 2003;
The company is one of the biggest Enterprise in Quang Ngai Province in following fields:
Industrial and Civil Works, Transportation, Irrigation, Electricity, Bridge and highway Project
Preparation, Survey; Design, Estimate; Project and Design Appraisal; Project Management;
Appraisal of Tender dossiers; so on.
2.2.10 Trung Long Co., Ltd
Trung Long Co., Ltd is established in 2006 in accordance with No. 3402000565 issued by
Quang Ngai Department of Planning and Investment on 12/09/2006;
Principal Business of Trung Long Co.,Ltd is as followings:
Consulting on Project Preparation, Design and Management of Project of Irrigation,
Transportation; Civil Works, Drainage;
Consulting on preparation of bidding dossier in Irrigation, Transportation, civil and
industrial works;
Consulting on Topographic, Geographic survey in irrigation, transportation, Civil and
industrial Project;
Consulting on project appraisal in irrigation, transportation, civil work fields
2.2.11. TEDIPORT
Port and Waterway Engineering Consultancy Joint Stock Company (TEDIPORT) has been
established in 2000 from equitizing the State-owned Company and is a member of Transport
Engineering Design Incorporated (TEDI). TEDIPORT has done business in consulting,
surveying and automatic designing for 45 years;
10
TEDIPORT has been closely cooperated with Nippon Kei, JPC, Toa Corporation, Penta
Ocean, Sumitomo, Mitsui, Shimizu, J Power from Japan, Heacon, Jan De Nul in Belgium,
Wallingford, Forster Wheeler, Atkin, Halcrow from United Kingdoms, Hyundai, Daewoo,
NamWon Keonseol, Handong from Korea, and so on to implement its projects such as: Red
river Inland Waterway system; Hai phong Port, Cai Lan Port; Dung Quat Port, so on;
TEDIPORT provide services as follow: Consultancy in investment report and project for
construction of port, waterway, irrigation, shipyard work, Transportation; Basic design,
technical and detailed design, for construction of port, waterway, irrigation, infrastructural
works, road; Service in Topographic, meteorological, hydro-oceanographic, seismic surveys
and geotechnical investigation and service in transferring Scientific and high technology.
2.2.12. HYMENET
Centre for Hydro-meteorological and Environmental station network (Hymenet) found in
2003 under decision No.15/2003/QD-BTNMT.
Hymenet provide the service in science research and environment development in inspecting
meteorology, environment, implementing the research result in Vietnam; Providing services
in fundamental inspection for environmental equipment and; evaluating the investment
projects related to the fundamental analysis to the air and water environment;
Some big clients in this service such as Vietnam Environment protection Agency; Vietnam
airline Corporation, Noi Bai Development Co.,Ltd and so on.
11
2.3 INSPECTION RESULTS
The results of the inspection carry out as per the scope of work & methodology stated in
Section I of the report is as follows:
2.3.1. Mekong Co., Ltd
During our on- site inspection, we held meetings with the key personnel of Mekong Co., Ltd
and asked for the answers, information and documentary evidence on the questionnaire
prepared by us for our inspection work. By verifying and analyzing the documents/ Data &
records maintained the sub – contractor:
- We confirmed the substantiality of the sub-contractor and the sub-
contract;
- We were able to obtain the information of the sub- contractor’s
business profile, number of the staff, organizational structure;
- We confirmed the validity and authenticity of the sub- contract
awarding methods and procurement procedures of JICA Consultants by talking their
representations and documents retained by them, copies of correspondence on
invitation to tender sent by JICA Consultant by taking their representation and
verifying a few documents retained.
- We are able to verify the relevant receipts, invoices, bank statements,
necessary for us to confirm that the mode & method of payments of sub- contract were
made through banking channel.
2.3.2. All Section of Investment and Trading Company
Before meeting, we had contacted to Sub-contractor according to legal address, but we could
not communicate with sub-contractor, and we had to appoint our staff to inspect sub-
contractor’s office but he could not find out any information. It took us 3 times ( about 3
weeks) to have a meeting with the key personnel (Ms. Chu Thi Thu Ha- Senior Expert).
During our meeting, we asked for the answers, information and document any evidence
related to information of sub-contractor and sub-contract.
- We confirmed the substantiality of the sub-contractor and the sub-
contract;
- The Scale of Company is very small. The key personnel said to me that
all staffs were working in clients, not at office. The staffs almost work in part-time,
not full time. It means that when the company had jobs, they hired the employees and
12
dismissed them then. While Observing the office, we realized that there were shortage
of the necessary equipments for office.
- We are able to verify the relevant receipts, invoices, necessary for us to
confirm that the mode & method of payments of sub- contract.
- We checked to Final report through electronics version (not have hard
copies).
- We would like to draw attention to the fact that the value added taxed
(VAT) invoice could not be tested.
2.3.3. Vietnam Industry and City Development Corporation (ICD)
During our on-site inspection, we held the meeting with the key personnel of the above sub-
contractor and ask for the answers, information and documentary evidence on the
questionnaire prepared by us for our inspection work. By verifying and analyzing the
documents/ data& records maintained by the sub- contractor:
- We confirmed the substantiality of the sub-contractor and the sub-
contract;
- We were able to obtain the information of the sub- contractor’s
business profile, number of the staff, organizational structure;
- We confirmed the validity and authenticity of the sub- contract
awarding method and procurement procedures of JICA Consultants.
- We are able to verify the relevant receipts, invoices, bank statements ,
necessary for us to confirm that the mode & method of payments of sub- contract were
made through banking channel in a proper way. However, Sub-contractor did not keep
fully commercial invoice on 14/10/2009, commercial receipt on 14/10/2009, receipt
document on 16/06/2009 and the Sub-contractor confirmed verbally that such amount
were received from Japanese Consultant.
- We would like to draw attention to the fact that the value added taxed
(VAT) invoice could not be tested fully.
2.3.4. Vietnam Institute of Industrial Chemistry
During our on- site inspection, we held the meeting with the key personnel of the above sub-
contractor (the former Director and his assistants did not work there) and ask for the
answers, information and documentary evidence on the questionnaire prepared by us for our
inspection work. By verifying and analyzing the documents/ data& records maintained by the
sub- contractor:
13
- We confirmed the substantiality of the sub-contractor and the sub-
contract;
- We were able to obtain the information of the sub- contractor’s
business profile, number of the staff, organizational structure;
- We did not confirm the validity and authenticity of the sub-contract and
the sub- contract awarding method and procurement procedures in documentation
because we could not test any related documents.
- We only received the Final report in Electronic version from Director’s
Assistant. The hard copies were not kept.
- We were not able to verify the relevant receipts, invoices, bank
statements, necessary for us to confirm that the mode & method of payments of sub-
contract were made in proper way because necessary documents are not kept in the
office. We had met the Former Director’s Assistant-Ms Huyen Phuong, she confirmed
verbally that they had received all money from Japanese Consultant and ensured
authenticity of all documents related to the sub-contract which Japanese consultant
kept.
2.3.5. Rich Media Co., Ltd.
During our on-site inspection, we held the meeting with the key person of the above sub-
contractor and ask for the answers, information and documentary evidence on the
questionnaire prepared by us for our inspection work. By verifying and analyzing the
documents/ data& records maintained by the sub- contractor:
- We confirmed the substantiality of the sub-contractor and the sub-
contract;
- We were able to obtain the information of the sub- contractor’ business
profile, number of the staff, organizational structure;
- We confirmed the validity and authenticity of the sub- contract
awarding method and procurement procedures of JICA Consultants.
- We were able to verify the relevant receipts, invoices, bank statements
and so on, necessary for us to confirm that the mode & method of payments of sub-
contract were made through banking channel and in a proper way.
- We would like to draw attention to the fact that the value added taxed
(VAT) invoice could not be tested.
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2.3.6. Vietnamnet Global Media JSC.
During our on-site inspection, It took us 2 times (about 10 days) to hold a meeting with the
key personnel of above sub-contractor and asked for the answers, information and
documentary evidence on the questionnaire prepared by us for our inspection word. By
verifying and analyzing the document/ Data & records maintained the sub – contractor:
- We confirmed the substantiality of the sub-contractor and the sub-
contract;
- We were able to obtain the information of the sub- contractor’s
business profile, number of the staff, organizational structure;
- We confirmed the validity and authenticity of the sub- contract
awarding method and procurement procedures of JICA Consultants by talking their
representations.
- We are able to verify the relevant receipts, invoices, bank statements,
necessary for us to confirm that the mode & method of payments of sub- contract were
made through banking channel in a proper way, but some cheques could not checked
because sub-contractor did not keep the copies of cheques, they only confirmed
verbally to this documents; We had checked to the receipt documents through cashier
for payment
- We would like to draw attention to the fact that the value added taxed
(VAT) invoice could not be tested fully.
2.3.7. Consultation and Construction Centre.
During our on- site inspection, we held meetings with the key personnel of above sub-
contractor and asked for the answers, information and documentary evidence on the
questionnaire prepared by us for our inspection word. By verifying and analyzing the
document/ Data & records maintained the sub – contractor:
- We confirmed the substantiality of the sub-contractor and the sub-
contract;
- We were able to obtain the information of the sub- contractor’s
business profile, number of the staff, organizational structure;
- We confirmed the validity and authenticity of the sub- contract
awarding method and procurement procedures of JICA Consultants by talking their
representations and verifying documents retained by them.
- We are able to verify the relevant receipts, invoices, bank statements,
necessary for us to confirm that the mode & method of payments of sub- contract were
made through banking channel in a proper way.
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2.3.8. Quang Ngai Construction and Investment Consulting JSC.
During our on- site inspection, we held meetings with the key personnel of above sub-
contractor and asked for the answers, information and documentary evidence on the
questionnaire prepared by us for our inspection word. By verifying and analyzing the
document/ Data & records maintained the sub – contractor:
- We confirmed the substantiality of the sub-contractor and the sub-
contract;
- We were able to obtain the information of the sub- contractor’s
business profile, number of the staff, organizational structure;
- We confirmed the validity and authenticity of the sub- contract
awarding method and procurement procedures of JICA Consultants by talking their
representations and verifying documents retained by them.
- We are able to verify the relevant receipts, invoices, bank statements,
necessary for us to confirm that the mode & method of payments of sub- contract were
made through banking channel in a proper way;
2.3.9. Construction Investment and Development Consultancy Company.
During our on-site inspection, we held meetings with the key personnel of above sub-
contractor and asked for the answers, information and documentary evidence on the
questionnaire prepared by us for our inspection word. By verifying and analyzing the
document/ Data & records maintained the sub – contractor:
- We confirmed the substantiality of the sub-contractor and the sub-
contract;
- We were able to obtain the information of the sub- contractor’s
business profile, number of the staff, organizational structure;
- We confirmed the validity and authenticity of the sub- contract
awarding method and procurement procedures of JICA Consultants by talking their
representations and verifying documents retained by them.
- We are able to verify the relevant bank statements, necessary for us to
confirm that the mode & method of payments of sub- contract were made through
banking channel and in proper way; Sub-contractor confirmed verbally to all
commercial invoices and receipts which they issued.
- We would like to draw attention to the fact that the value added taxed
(VAT) invoice could not be tested.
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2.3.10. Trung Long Co., Ltd.
During our on- site inspection, we held meetings with the key personnel of Trung Long Co.,
Ltd and asked for the answers, information and documentary evidence on the questionnaire
prepared by us for our inspection word. By verifying and analyzing the document/ Data &
records maintained the sub – contractor:
- We confirmed the substantiality of the sub-contractor and the sub-
contract;
- We were able to obtain the information of the sub- contractor’s
business profile, number of the staff, organizational structure;
- We confirmed the validity and authenticity of the sub- contract
awarding method and procurement procedures of JICA Consultants by talking their
representations and verifying documents retained by them.
- We are able to verify the relevant receipts, invoices, bank statements,
necessary for us to confirm that the mode & method of payments of sub- contract were
made through banking channel in a proper way
2.3.11. TEDIPORT.
During our on- site inspection, we held meetings with the key personnel of TEDIPORT and asked for the answers, information and documentary evidence on the questionnaire prepared by us for our inspection word. By verifying and analyzing the document/ Data & records maintained the sub – contractor:
- We confirmed the substantiality of the sub-contractor and the sub-contract;
- We were able to obtain the information of the sub- contractor’s business profile, number of the staff, organizational structure;
- We confirmed the validity and authenticity of the sub-contract awarding method and procurement procedures of JICA Consultants by talking their representations and verifying documents retained by them.
- We are able to verify the relevant receipts, invoices, bank statements , necessary for us to confirm that the mode & method of payments of sub- contract were made through banking channel in a proper way
2.3.12. HYMENET.
During our on- site inspection, It took us 3 times to have a meeting with the key personnel of HYMENET, because they were too busy. The Director who signed contract with Japanese consultant, moved to other place, so documents were not kept fully in the office. We had an interview with Mr. Luong (current Director) and asked for the answers, information and
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documentary evidence on the questionnaire prepared by us for our inspection word. By verifying and analyzing the document/ Data & records maintained the sub – contractor:
- We confirmed the substantiality of the sub-contractor and the sub-contract;
- We were able to obtain the information of the sub- contractor’s business profile, number of the staff, organizational structure; and While Observing the working condition of staffs at Hymenet, We felt that that was a good contractor in the science research and environment development in inspecting meteorology, environment in Vietnam .
- We were not able to verify the sub- contract awarding method and procurement procedures in documentation, because of the shortage of related documents. However, when Interviewing Mr.Luong, we realized that they clearly understood and applied the procurement procedures of JICA Consultant, like other sub-contractors. He confirmed verbally the authenticity of sub-contract and procurement procedures.
- We were able to verify only the relevant receipts, invoices, but not bank statements, final report and value added taxed (VAT) invoice. Because those documents were not kept at the office. However, the current Director confirmed verbally the validity of all documents which Japanese Consultant kept.
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SECTION III: RECOMMENDATIONS
3.1 RECOMMENDATION
Documentation: JICA should require the Consultants and sub- contractors to make
an effective system of documentation for all the relevant correspondences, records and
information on the sub- contract, which shall be subject to inspection by JICA in
future. So, all the documents/ copies should be maintained in hard copy and retains for
certain - time- period even for the correspondences held in electronic versions (Scan
version).
Payments through bank to bank is best way as far as practicable and legally, a bank
account should be maintained by the sub- contractors for all the transactions pertaining
to the sub- contract awarded for transparency and efficiency. For payment through
cheques, Consultant should not issue the cheques or require sub-consultant keep the
photocopy of cheques for checking, because almost sub-consultants did not kept it
after withdrawing money from Bank.
Tax duties: JICA should require all consultants receive the Value added Tax invoice
(Legal invoice) before paying all money to sub-consultants. This is to ensure the tax
duties under Vietnamese regulations.
Audited report is necessary for each contract from an Independent Auditor.
Control Procedures: JICA should issue the complete control procedures from start to
the end of work to ensure the work are parallel in progress with payment.
Inspection of sub- contracted work should be carries out by JICA or third party
assigned by is within one year to avoid redundancy or relevance. To make the third
random inspection more effective, we believe that the direct interaction with the JICA
Consultants is also necessary.
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