The city of Seoul said on the 16th that it will promptly and faithfully carry out administrative follow-up measures pointed out in the Board of Audit and Inspection's audit results on the Hangang Bus project.
According to the city of Seoul, in response to a request from the National Assembly's Public Administration and Security Committee that day, the Board of Audit and Inspection conducted an audit related to the Hangang Bus and issued a final notice of "caution/notification."
The audit examined the overall facts and procedural propriety of the Hangang Bus project, focusing on three issues: ◇ the appropriateness of calculating expense-benefit, including total project cost estimates; ◇ allegations of favoritism in shipbuilding contracts; and ◇ failure to meet vessel speed.
In the selection of the shipbuilder and the operator to develop the Yeouido pier, the propriety of the bidding and evaluation procedures was recognized. The Board of Audit and Inspection confirmed there were no illegal or improper acts such as favoritism in the process and found no problems with the management and oversight of the project implementer.
However, in the process of calculating the benefit-cost (B/C), the Board of Audit and Inspection issued a "caution" for the portion excluding shipbuilding expense. Seoul explained that, with no precedent for a private-led project, it applied guidelines used in airport construction that exclude aircraft purchase costs and thus excluded the ship purchase expense.
In response, the Board of Audit and Inspection said that, under the Local Government Finance Act and other rules, shipbuilding expense must be included, and urged thorough handling of related tasks in promoting similar projects in the future.
Regarding the issue of failing to meet vessel speed, a "notification" measure was issued. The city explained that it was difficult to finalize an exact speed at the early stage of the project and that it became possible to confirm it only after the vessel was delivered in Feb. last year. The Board of Audit and Inspection recommended adjusting operating times and timetables by considering vessel speeds that are actually achievable going forward.
Park Jin-Young, head of the Seoul Metropolitan Government's Mirae Hangang Headquarters, said, "We will promptly and faithfully implement the administrative follow-up measures pointed out in the audit results," and added, "We will carry out all procedures transparently in accordance with laws and standards and disclose information transparently to meet citizens' trust."