HA NOI — Police will be clamping down on social and health insurance dodgers to minimise the increasing amount of debt.
The move forms part of a co-operation agreement signed between the Viet Nam Social Insurance and the General Police Department of Crime Prevention and Suppression.
Lieutenant General Phan VanVinh said his department would entrust local economic police forces to work with branches of the Viet Nam Social Insurance in collecting insurance debts and apprehending criminals.
He said it would also assist insurance offices in preventing the misuse of funds and maintaining a balance between incomes and expenses.
Le Bach Hong, general director of the Viet Nam Social Insurance, said violations have increased in recent times, causing losses for insurance funds.
The latest statistics have shown that in the first four months of this year, social and health insurance debts reached VND8.57 trillion (US$408 million), 30 per cent higher than during the same period last year.
Specifically, there are 180 debtors of VND1 billion ($47,600) or above and 89 owing insurance for more than two years worth VND200 billion ($9.5 million).
Total insurance debt last year hit VND3.9 trillion ($186 million).
He said many city and provincial insurance funds have fallen due to overspending. This affected not only the existence of these funds, but also social order and safety.
"It is beyond the agency's ability to control violations related to insurance payments as well as to detect debtors, necessitating its co-operation with the police," he said.
Vu Trung Chinh, director of the Ha Noi Employment Placement Centre, said centres with insurance offices have met difficulties in dealing with complicated legal procedures, making police participation essential.
So far, some enterprises were forced to pay their insurance debts, but none have been punished, he said. — VNS