26 C
Vientiane
Tuesday, June 17, 2025
spot_img

Corruption in Lao Banking Sector Causes LAK 1.6 Billion in Losses in 2024, Bank of Laos Says

This Week

Widespread corruption in Laos’ banking sector led to nearly LAK 1.6 billion (around USD 74,000) in financial losses in 2024, according to the Bank of Laos (BOL). Only LAK 137.43 million (about USD 6,300) has been recovered so far.

The central bank reported 21 corruption cases across the banking system last year. Six were new cases, two within the Bank of Laos itself, three at Nayoby Bank, and one at Banque pour le Commerce Exterieur Lao Public (BCEL). 

The other 15 cases were linked to earlier investigations, involving ten at the Agricultural Promotion Bank (APB) and five at Nayoby Bank.

While only a small portion of losses from 2024 cases has been recovered, ongoing investigations from previous years led to the recovery of an additional LAK 4.74 billion (about USD 218,700).

Authorities took disciplinary action against 167 individuals, including 114 staff from APB, 37 from BCEL, 11 from BOL, and five from Nayoby Bank. Three officials, two from BCEL and one from Nayoby Bank, were suspended pending further investigation.

These findings highlight ongoing corruption challenges within Laos’ banking sector, part of a broader national issue.

One of the most serious corruption cases in 2024 involved former employees of the Lao Post Office, who embezzled over LAK 58 billion (around USD 2.7 million). Investigations are still ongoing, with state-owned enterprises, including the national power utility, Electricité du Laos, under continued scrutiny.

The case highlights ongoing governance issues in Laos. In Transparency International’s 2024 Corruption Perceptions Index, the country ranked 114th out of 180, with a score of 33 out of 100. Any score below 50 indicates a serious corruption problem.

Latest article