Linh Lan Construstion Company won a tender for the building of a school at Quang Binh thanks to receiving verification from a list of non-existent social insurance holders.
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| A school in Quang Binh. Illustrative photo. |
The company did not have enough qualifications to grab the contract for the building of a two-story school at Son Thuy Commune, Le Thuy District, Quang Binh Province if Dang Ngoc Nghinh, Manager of Le Thuy District’s Social Insurance discovered that the list submitted by Linh Lan was fake. However, the project was already tendered before the mistake was realised.
After getting the nod from Vo Khac Hoa, Chairman of the People’s Committee of Le Thuy District, the People’s Committee of Son Thuy Commune organised a tender and Linh Lan won the tender at the price of VND1.5 billion ($77,537) which is much higher than other offers.
The total investment is worth VND1.8 billion ($93,000), out of which construction expenditure is VND1.5 billion ($77,537).
In order to have a perfect tender application to cheat the supervising unit and the project management board, Vo Ngoc Han, Manager of Linh Lan Company, somehow received verification of 8 social insurance holders from his company, although most of them are nonexistant.
Regarding the mistaken verification, Dang Ngoc Nghinh told DTiNews, “That day when I was leaving my office for a business trip, I found Han came and worked with the functional department so I signed the list of social insurance holders of his company without checking it thoroughly. After that, I felt something wrong with it, I made a call to the office to recheck. I found there were some wrong names and titles.”
Then Nghinh received a phone call about the fraud of Linh Lan company from another tenderer. He contacted Han and asked him to return the verified document but he refused.
At present, Linh Lan Company is completing the school construction. The supervising unit has not checked the site so the construction quality remains unknown.
These fraudulent deeds have caused remarkable consequences. The construction progress has been delayed. The project was supposed to be completed in the last quarter of 2009. In addition, the State budget will lose hundrends of millions of dong because the tender price is much higher than other tender offers.