Following an audit conducted by the State Audit Organization, an estimated 3.135 trillion kip (USD 384.776 million) has been uncovered as additional revenue, representing 3.11% of the total state revenue.
President of the State Audit Organization, Ms Viengthong Siphandone, also revealed at the ongoing 3rd Ordinary Session of the National Assembly, that the audit reports submitted indicates that 9.819 trillion kip (USD 1.204 billion), equaling 8.15% of total state expenditure, has been confirmed as additional expenditure.
After gaining knowledge of the revenue leakage from the audit, the National Assembly and Lao government immediately issued resolutions, orders and announcements determining correctional procedures. A majority of the funds discovered have been retrieved and directed to the state budget.
New regulations have been endorsed and put in place to address the revenue leakage, resulting in a decrease of financial rule violations, including the identification of fabricated projects.
The newly implemented regulations specifically aim to improve the accounting and finance system, the revision of the state accounting system manuals, and the improvement of national treasury accounting systems at both central and provincial levels.
“The implementation of planned audit activities over the past five years have been given sound support and won trust from relevant sectors in society as the audit authority has exerted the role authorized to it by the Party and people, performing its authority openly, transparently and by means acceptable to all sectors and according to the audit procedures,” stated Ms Viengthong.
The audit conducted by the State Audit Organization focused on the implementation of state budget expenditure and revenue collection between the fiscal years of 2010-2011 and 2014-2015.
The president of the State Audit Organization also explained her frustration with the audit, detailing failure to audit all budget units, the lack of standard regulations and ineffective collaboration between the State Audit Organization and the State Inspection Organization.