Parliament demands punishment for financial mismanagement
The National Assembly (NA) has instructed those state organisations that breached the financial regulations in the 2011-2012 fiscal year, to make an additional contribution of more than 389 billion kip into the revenue collection plan for 2014-2015.
The parliament resolved on Friday to take this action when it closed its once-every-six-month ordinary session, which opened on December 9 in Vientiane.
The instruction was made after the State Auditing Organisation (SAO) presented the audited report on the implementation of the state budget plan for the 2011-2012 fiscal year to the parliament.
The report disclosed that many state organisations and enterprises infringed the financial regulations. In this regard, the parliament members have demanded that punishment is meted out on those organisations that breached the financial regulations.
“The session proposed that the government warn those concerned and consider measures against those orga nisations discovered in line with laws,” Head of the NA's Administrative Office, Dr Ounkeo Vouthirath said as he read out the session's resolution at the closing ceremony.
The resolution was adopted by the NA members by a majority vote. President Choummaly Sayasone, Prime Minister Thongsing Thammavong and other government cabinet members were present at the ceremony.
Dr Ounkeo, who is also the spokesman of the parliament, specified that the additional 389 billion kip should be collected from professional and technical services provided by government officials, saying that grants and other mobilised funds will not be recognised as contributions.
He told the closing ceremony that the parliament was concerned about the breaches of the financial regulations which were found in the 2011-2012 audit report.
The parliament described the breaches found as a ‘chronic problem'. The breaches included the revelation that some state organisations are holding two separate bank accounts.
Having two accounts has resulted in problems such as the fact not all revenue collected from technical services and timber sales by state bodies has flowed into a centralised account in line with the financial regulations.
In addition, some state bodies undertook projects which were not approved by the parliament, meaning the budget they spent exceeded the amount the parliament approved.
In this regard, the parliament instructed its Committee on Economic, Planning and Financial Affairs to work with the SAO and the Finance Ministry to review state exp enditure in detail.
This includes a review of unapproved projects, which combined are worth more than 2,741 billion kip.
The parliament asked the SAO to wo rk with the Finance Ministry to follow up action towards addressing these issues in line with eight measures drawn up and presented by the SAO.
The NA demanded that progress made on these issues should be reported to the parliament's next ordi nary session expected to take place in the middle of next year.
With a view to the longer term, the parliament asked the government to formulate and improve regulations to manage revenue and expenditure, including revenue collected from technical services, funds and reserves.
ByTimes Reporters (Latest Update December 31, 2013)
It's very sad to see the pictures of our Laotian children studying in the substandard schools while most the corrupted government officials are making a lot of money by selling timbers to Vietnam and Thailand. Corrupted officials need to be punished and sent to re-education camps. Wake up Laos!
It's very sad to see the pictures of our Laotian children studying in the substandard schools while most the corrupted government officials are making a lot of money by selling timbers to Vietnam and Thailand. Corrupted officials need to be punished and sent to re-education camps. Wake up Laos!
State auditor uncovers billions in revenue, unapproved spending
The State Auditing Organisation (SAO) has uncovered more than 449 billion kip as additional revenue after auditing 73 state organisations, banks and enterprises as well as state investment projects.
Dr Viengthong Siphandone.
SAO President Dr Viengthong Siphandone revealed the findings of the audit for the 2011-2012 fiscal year's budget implementation plan at a press conference yesterday.
Auditors also found more than 4,242 billion kip was spent without approval from the National Assembly.
According to the audit report, state spending for the 2011-2012 fiscal year reached more than 19,115 billion kip, while just over 17,263 billion kip was collected as revenue.
Yesterday's media conference took place after Dr Viengthong presented the audit report to the National Assembly last month.
The report disclosed that many state organisations and enterprises infringed the financial regulations including authorising spending without the parliament's approval.
In addition, some state organisations are holding two separate bank accounts, which resulted in problems such as the fact not all revenue collected from technical services and timber sales by state bodies has flowed into a centralised account, as required by financial regulations.
In this regard, the parliament, in its ordinary session last month, resolved that those state organisations that breached the financial regulations in the 2011-2012 fiscal year will have to make an additional contribution of more than 389 billion kip into revenues for 2014-2015.
The additional 389 billion kip should be collected from professional and technical services provided by those organisations, but grants and other mobilised funds will not be recognised as contributions.
The parliament described the breaches of the financial regulations as a ‘chronic problem' and expressed concern over the issues, calling for the government to take measures to punish those in question.
The NA asked the the SAO to work with the Ministry of Finance to take follow up action towards addressing these issues in line with the eight measures drawn up and presented by the SAO.
Dr Viengthong told the yesterday media conference that those who infringe the planning and financial disciplines will face measures in accordance with Article 70 of the Law on State Auditing.
“The SAO will treat each individual case found in each fiscal year's audit based on the regulations,” she said, referring to punitive measures to be imposed on the violators.
Dr Viengthong admitted that the auditors have struggled to complete their work assignment, saying that the SAO has insufficient personnel to carry out and finish the annual workload.
In addition, cooperation from those state bodies to be audited was not done in a quick manner, which slowed the work of the auditors.She said there were various reasons why the SAO completed auditing only 73 state organisations, which represented only 90 percent of the annual plan.
By Times Reporters (Latest Update January 07, 2014)
Read This News, is more corruption then ever in Lao government.
