Authorities in Laos have disciplined 153 people and referred another 21 for judicial proceedings over a COVID-era scheme that allowed Chinese nationals to evade quarantine fees or pay rates above official limits, causing total losses of approximately USD 2.2 million.
State Inspection Authority President Vansay Phongsavanh reported the case to the National Assembly on 8 October, saying the 174 people involved included civil servants, police officers, business operators, and citizens. The violations occurred during the COVID-19 pandemic, although authorities have not specified the exact years in which they took place.
The scheme caused losses of LAK 25.03 billion (USD 1.1 million), alongside losses in Chinese yuan, Thai baht, and US dollars.
Authorities recovered six plots of land, including two guesthouses, three SUVs, two tractor trucks, two trailers, and about 638 grams of gold. They also recovered part of the money, including all outstanding amounts in Thai baht and US dollars. The remaining sums are owed in Lao kip and Chinese yuan.
BRT Project Under Scrutiny
Vansay also presented a review of public projects for the first nine months of 2026, with inspectors flagging USD 1.976 million in diverted funds and unused assets in Vientiane’s USD 99.7 million Bus Rapid Transit project.
The project spent USD 1.52 million upgrading nine roads outside its approved scope, including USD 584,508 on an unapproved project. It also spent USD 456,000 on 150 electric three-wheeled vehicles that remain unused because parking facilities were never built.
Inspectors found that none of the 33 contracts signed between 2018 and 2025, worth a combined USD 58.71 million, had a Lao-language version. Inspections are continuing.
Court Jails Former Agriculture Official for Land Corruption
Separately, a Vientiane court has sentenced a former Agriculture Ministry official to 18 years and three months in prison for signing six notices that prevented the state from collecting LAK 1.56 billion (USD 70,000) in taxes and fees.
Lindamon Sidaphone, acting head of the Vientiane Capital People’s Court Office, announced the verdict on 14 October. The 59-year-old official had signed notices that violated land-transfer rules and contradicted a ministerial agreement approving the conversion of state land into capital to pay a contractor for building the ministry’s office. The court also fined him 1 percent of the damage.
The contractor, which is civilly liable for the loss, agreed to repay the state. It paid LAK 100 million (USD 4,400) on 21 August and must pay the remaining LAK 1.46 billion (USD 65,000) within 60 days of that date.
Authorities have not publicly identified the former official beyond the name Kesone and his age.
