Laos vows to improve oversight in state-funded projects

The government of Laos has announced efforts to improve the inspections of state-funded projects to minimize corruption following the exposure of numerous cases of financial mismanagement, state-run media Vientiane Times reported Friday.

Inspection officials will be required to carefully scrutinize state investment projects from the preliminary stages onward following a government decree signed by Lao Prime Minister Thongsing Thammavong that came into force Jan. 6.

All projects financed by the state budget including state co- financing, grants and loans are all subject to thorough inspections under the decree.

The move comes following reports of financial mismanagement affecting state-funded projects across Laos as highlighted at the recent ordinary session of the country's National Assembly.

Among the most obvious cases of mismanagement were so-called " ghost" projects to which funds were repeatedly allocated and spent with little or nothing to show for the investment.

Some 25 of such projects were reported in a single province alone, costing the nation's coffers in excess of 324 billion kip ( 40 million U.S. dollars) in assets including 200 billion kip (24.6 million U.S. dollars) in cash.

Many state-funded infrastructure development projects nationwide were found to be undertaken without a tendering process, with collusion driving costs up to unreasonable levels and leading to further wastage.

Upon request, those responsible will be required to produce any relevant documents including proposals, surveys, designs, feasibility studies, economic and technical studies, social and environmental assessment reports, tender documents and contract agreements.

The decree also encourages greater involvement by media, civil society organizations, and members of the general public in identifying cases of mismanagement. Endi