BackStories » Saigon » Saigon Districts Struggle to Pay for Garbage Collection, Transport Services

Saigon Districts Struggle to Pay for Garbage Collection, Transport Services

Several sanitation companies in Saigon are struggling to pay their workers due to an absence of funds. 

VietnamNet reports that maintenance companies in District 12 and Thu Duc District are under major financial pressure since they don't have the of money stipulated in their contracts with the city.

Tran Thanh Tong, director of the Single-member District 12 Public Service JSC, told the news source that his firm has sent 10 dispatches to relevant authorities asking for assistance, but has received no reply. In April, Dau An Phuc, vice chairman of the District 12 People's Committee, asked the city People's Committee to step in.

The company is in trouble because the Ho Chi Minh City Urban Environment Single-member JSC (Citenco), which signed a contract with the District 12-based company for garbage transport work, owes it VND25 billion (US$1.1 million). Citenco has also not approved payments to the district for the period from 2014 to September 2016, the news source shares. It did not renew the contract this year.

As a result, the District 12 firm has had to borrow VND13 billion (US$572,130) just to keep running, while it has not been able to pay salaries since February. In addition, it is subject to a VND750 million (US$33,000) fine by the city Tax Department for overdue tax payments that it can't make.

Meanwhile Vu Quoc Bao, director of the Thu Duc District Public-service Single-member JSC, told VietnamNet that his company is in similar trouble. Since 2016, the firm has not been paid for its garbage collection and transport work, estimated at VND31 billion (US$1.36 million).

Like the District 12 company, Thu Duc's has borrowed money from banks to remain in operation, but even that hasn't been enough.

"Many benefits for workers, including holidays or New Year bonuses, among others stated under the collective bargaining agreement, have been either cut back or put on indefinite hold," Bao told the news site.

Bao reportedly even mortgaged his home in order to pay his employees ahead of the 2017 Tet holiday.

Citenco claims that it can't pay the sanitation companies until the city People's Committee approves unit prices for the collection and transportation of waste. Even for periods where that price has been set, the company says, the city has not disbursed the required budget, leaving them unable to pay district-level firms.

[Photo via Vietnam Breaking News]

Related Articles:

- US$450 Million Allocated To Clean Up Saigon’s Nhieu Loc – Thi Nghe Canal

- Garbage Is Trashing Vietnam’s Natural Beauty

- Vietnam's First Waste-to-Energy Plant Starts Operation in Hanoi

Related Articles

in Saigon

$100,000 Diamond Allegedly Vanishes From Woman’s Finger In HCMC Hotel

A Hanoi woman claims that she was drugged at a HCMC hotel last weekend and awoke to find that a $100,000 diamond had been pried from her ring.

in Saigon

100,000 Workers at Saigon Industrial Zones to Get Free WiFi by 2019

Workers at Saigon’s industrial zones can look forward to free WiFi access in the near future thanks to a new program.

in Saigon

100-Year-Old Trees In Front Of Opera House Cut Down To Make Way For Metro

Flower Street and the statues in front of Bến Thành Market aren’t the only sacrifices being made to accommodate the construction of Saigon’s first metro line.

in Saigon

122-Year-Old Saigon Woman Confirmed As World’s Oldest

The World Records Association (WRA) has completed the verification process and officially confirmed Saigon’s 122-year-old Nguyen Thi Tru, as the world’s oldest woman.

in Saigon

160 Wood Benches Being Added To Nguyen Hue Street

The trees that were cut down last July during construction of the metro station in front of the Saigon Opera House are making a comeback in the form of benches.

in Saigon

2 Men Arrested In HCMC For Trying To Ship Gun and Grenade In Guitar Case

Two local men were arrested last Tuesday after attempting to ship a rifle, grenade and 5 bullets to Hanoi in a guitar case. Surprisingly, neither of the men were Antonio Banderas.

Partner Content