Laos uncovers widespread state corruption, records billions in losses over five years, says financial officer


Khamphanh Phommathat, President of the State Inspection Authority (SIA), presented the findings during the 10th Ordinary Session of the 9th Legislature on Friday (Nov 14). -- Photo: Laotian Times

VIENTIANE (Laotian Times): Laos has uncovered widespread corruption cases nationwide over the past five years, identifying 334 individuals implicated in financial misconduct between 2021 and 2025, with total losses exceeding LAK 642.93 billion (nearly US$0 million), alongside significant losses in multiple foreign currencies. 

Khamphanh Phommathat, President of the State Inspection Authority (SIA), presented the findings during the 10th Ordinary Session of the 9th Legislature on Friday (Nov 14).

According to Khamphanh’s report, delivered during the session running from November 10 to 21, inspections across 18 corruption targets revealed total losses of THB 68.95 million (about US$1.9 million), CNY 7.80 million (approximately US$1.1 million), US$66.8 million, and VND 1.5 billion (US$59,000) in addition to the Lao kip losses. 

Despite the extensive financial damage, authorities have managed to recover LAK 66.40 billion (around US$3.1 million), THB 6.49 million (about US$ 180,000), CNY 5.19 million (around US$720,000), US$7.29 million, as well as various confiscated assets.

Of the 334 individuals implicated, 213 are state officials, 44 are employees of state enterprises, and 77 are private-sector actors. Investigations have been completed for 13 of the 18 cases, affecting 312 people. So far, 86 individuals have been submitted for prosecution, with 23 already sentenced, while 207 have received administrative disciplinary measures. Nineteen cases were transferred to other competent authorities. 

In 2025 alone, six new cases involving 59 people were investigated.

Beyond corruption cases, the SIA report also raised serious concerns regarding Vientiane’s Bus Rapid Transit (BRT) project, launched in 2014. The project is delayed by approximately 24 months behind schedule, with 79.25 per cent overall completion and 85.35 percent of infrastructure contracts finished. 

Problems include unapproved designs, uncertified equipment in buses, stations, and depots, non-compliant financial procedures, and consulting fees of USD 10.98 million, 11 percent of the budget, far above the 2 percent standard.

Since 8 November, a two-month free trial service has started.

Khamphanh emphasized the need for stricter monitoring, accelerated project implementation, and stronger transparency across all government sectors to prevent further losses and restore public trust. - Laotian Times

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