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


√ √ 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


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


√ √ √ 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


√ √ √ 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


8 Quang NgaiConstruction andInvestment Consulting JSC

No. 112, PhanDinh Phung Str.,Quang NgaiTown, QuangNgai Province


√ √ √ √ 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


√ √ 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



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


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)


Mr. Le Van

Doanh

Director $ 31,724

(One contract)




Study on collection efficiency

with container transportation

cars and wheel carts

4 Vietnam Institute of Industrial Chemistry


Mr. Hoang

Van Hoan

Vice

Director

$15,070

(one contract)




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)




Strengthening the function of

environmental education

center in Cau Dien Compost

Plant

6 Vietnamnet Global Media JSC


Ms. Nguyen

Thu Huong

Vice

Director

$89,096.92

(Two contracts)




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


Mr. Nguyen

Duc Minh

Director,

Chairman

$153,200

(Three contracts)

The Project for Rehabilitation of



Republic of Vietnam

Implementing Topographic


Detailed Design Works for

Mach Dieu, An Hoi, Nam

Binh Thuong Revervoir

9 Construction Investment and Development Consultancy Company


Mr. Bui Quy Director $125,000

(Two contracts)




Republic of Vietnam




Hoc Mit, An Tho Revervoir

10 Trung Long Co., Ltd Sanyu Consultant INC

Mr. Nguyen

Van Thong

Director $126,700

(Two Contracts)




Republic of Vietnam




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.


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:


contract;




awarding method and procurement procedures of JICA Consultants.

- We are able to verify the relevant receipts, invoices, bank statements ,


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.


(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


contract;



- 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:


contract;

- We were able to obtain the information of the sub- contractor’ business

profile, number of the staff, organizational structure;


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.



14

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:


contract;




awarding method and procurement procedures of JICA Consultants by talking their

representations.



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


(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:


contract;





representations and verifying documents retained by them.



made through banking channel in a proper way.

15

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-





contract;








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-





contract;






- 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.



16

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:


contract;








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

17

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.

18

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.

19

vietnam report.13 6

Documents