Construction ministry inspectors have found violations in the building of two flyovers in Ha Noi that can inflict losses of VND7.94 billion (US$378,000) on the State Budget.
Several local media reported last week that the ministry's inspectorate holds the Transport Engineering Design Corporation, Ha Noi Traffic Project Management Board 3, and Ha Noi Department of Transport responsible for the violations.
The two flyovers, on Nguyen Chi Thanh-Kim Ma and Nguyen Chi Thanh-Lang Ha crossroads, were built by the Ha Noi Transport Department with State Budget funds.
For the Nguyen Chi Thanh-Lang flyover project, the total loss suffered by the State Budget was about VND3.19 billion ($152,000).
Of this, over-calculating the number of flyover components needed and a lack of construction designs for small packages accounted for VND550 million ($26,100).
Furthermore, inflated invoicing of flyover components, including steel decks, concrete pillars and lighting systems raised the cost by VND2.3 billion ($109,500), the inspectors found.
They said the Ha Noi Transport Department also made mistakes in checking and approving the project design, adding VND341 million ($16,200) to project expenditures.
The city violated procurement procedures in selecting contractors and evaluating bids and made mistakes in monitoring construction quality, the inspectors said, explaining that some construction records and quality examination reports were missing.
In the Nguyen Chi Thanh-Lang flyover project, the inspectors found violations and errors that cost the State budget about VND4.75 billion ($226,000).
While over-estimating the quantity of steel and concrete and lack of detailed construction plans cost the State Budget VND1.3 billion ($61,900), the over-invoicing of flyover components including steel decks and stakes accounted for an additional VND3 billion ($142,850).
Monitoring and quality evaluation mistakes further increased project costs by VND450 million ($21,400), the inspectors said, adding that violations were also found in selecting contractors.
Project managers failed to submit verification documents on machinery and equipment used, the inspectors said.
Pham Gia Yen, the Construction Ministry's Chief Inspector, told Tien Phong (Vanguard) that the Ha Noi Transport Department should redo its calculations and submit the actual cost to the city People's Committee for paying contractors.
He also said that the department should issue sanctions and punish those responsible for violations.
In its response, the Ha Noi Transport Department has said that it is yet to completed calculation of actual costs for both projects, and has not yet paid contractors.
It also said that the payment would made once the costs were approved by the municipal administration.
The Ha Noi Construction Department has invested a total of VND22.1 trillion ($1.05 billion) from the State Budget in 47 projects since 2009. It has disbursed VND18.5 trillion ($881 million) in completing 26 of the 47 projects and is currently building the remaining 21 at an estimated cost of VND3.6 trillion ($171 million).
The Inspectorate's examination of the use of State Budget funds for traffic projects in Ha Noi was carried out from May-July 2014