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The administrative agency won't pay if it says "the audit has not been completed"? The court said no!

Home page >> Classic case >> Government-enterprise disputes

Article author:Yingting Lawyers Group | Update time:2026-06-22 | Reading times:160

The administrative agency owes you 30 million, and it has delayed you for 5 years just by saying "the audit has not been completed"? When many companies sign contracts with administrative agencies, there is a sentence in them that "the audit results will ultimately prevail." As a result, after the project was completed, the audit could not be completed for three to five years, and the money could not be obtained.
However, Article 67 of the Private Economy Promotion Law clearly stipulates: Administrative agencies shall not force the use of audit results as the basis for settlement. If the terms of the audit are unclear, the court can directly initiate a judicial audit to replace the pending audit.administrative audit.

"Private Economy Promotion Law"

Article 67: State agencies, public institutions, and state-owned enterprises shall pay accounts to private economic organizations in a timely manner in accordance with the law or in accordance with contracts. They shall not refuse or delay payment of accounts to private economic organizations on the grounds of personnel changes, internal payment procedures, or waiting for completion acceptance approval, final accounts audit, etc. in the absence of stipulations in the contract; unless otherwise provided by laws and administrative regulations, it shall not be mandatory to use audit results as the basis for settlement.

Audit agencies shall audit and supervise the payment of accounts to private economic organizations by state agencies, public institutions and state-owned enterprises in accordance with the law.

A typical case just announced: a certain district health commission owes a pharmaceutical company 35.4 million yuan, and has been in arrears for a long time on the grounds that the audit has not been completed. The court finally promoted a judicial audit and ordered the payment of more than 26 million yuan. Note that this is not a negotiation, but a court decision.
Enterprises should remember two points: first, if the audit clause in the contract is unclear, you can ask the court for a direct judicial audit; second, if the administrative agency delays the audit indefinitely, this in itself constitutes a breach of contract, and you can directly sue.
During the process of handling the case, lawyer Ying Ting learned that many bosses feel that "the administrative agency owes money, so they can just wait." This concept is dangerous. If administrative agencies owe money, the sooner they can defend their rights, the better. The longer the delay, the harder it is to collect evidence and the higher the cost of defending rights.
Moreover, the state is now launching a special campaign for enterprise-related administrative law enforcement to investigate and correct arbitrary enforcement of laws, arbitrary fines, and arbitrary charges by enterprises. If your company is in arrears with payments by administrative agencies, now is a good time to defend your rights.
The key is evidence. You need to keep these evidences: original contract, performance certificate, reminder record, and written response from the administrative agency for delay. With this evidence, a lawyer can help you win the case.
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