A court in Vientiane gave life sentences to several former bank employees for corruption. The charges included abusing power, taking bribes, illegal foreign exchange deals, and money laundering. This was reported by the Vientiane Capital People’s Court in a statement.
The court heard the cases on 8 September, but the details listed 11 defendants. One of them passed away while the cases were still ongoing.
First Case
In the first case, two former employees of the Bank of the Lao PDR, Khamphout Sitthirat and Ot Phonxiengdy, both aged 59, were involved.
Khamphout led the central bank’s Monetary Policy Department from 2011 to 2020. Ot managed the Foreign Exchange Service Department for businesses from 2011 to 2016.
The central bank ordered a review of currency trading with exchange shops. According to the court, Ot suggested releasing foreign currency from the bank’s reserves for exchange services without any limits. He then took bribes from exchange shops and bought foreign currency at rates that went against the rules.
The money was reportedly put into bank accounts and used to buy property. The court estimated the total damage at LAK 2.29 trillion (USD 103.1 million), based on the bank’s Tuesday’s exchange rate of LAK 22,278 per US dollar. The central bank did not seek compensation, while Lao Foreign Trade Bank Public Company Limited sought LAK 142.71 billion (USD 6.4 million) from Khamphout.
Khamphout received a life sentence, a fine equal to 1 percent of the estimated damage, and was ordered to pay back the commercial bank. His money, land, cars, and other possessions were also seized.
Ot also received a life sentence and a fine, but he died during the legal process. As a result, the court canceled his criminal sentence.
Second Case
In the second case, other former bank employees were found guilty of corruption related to foreign currency deals, and in some instances, money laundering. Khamkeo Visisombath and Bounluan Ounlathavong were both sentenced to life in prison.
The court stated that Khamkeo used special or unauthorized exchange rates, benefiting a company by about USD 95,459 and THB 1 million (USD 30,400), while Bounluan was found to have obtained LAK 24.13 billion (USD 1.08 million) through currency deals and used the money to buy assets and invest in businesses.
Bounthom Phanthavong also received a life sentence for corruption and money laundering. The other defendants were given prison terms ranging from four to 17 years.
Khamla Sayalath received four years for accepting LAK 180 million (USD 8,080) in bribes from a fuel-import company. Soukthada Sennam and Southida Phetchamphone each received 16 years, while Yangju Tongsa, Manilack Souvannakham, and Vongsa Saiphimchai each received 17 years for corruption and money laundering.
Some of the defendants had their sentences reduced because they admitted their guilt and took steps to make amends.
Broader Anti-Corruption Drive
These rulings are part of a larger effort to prosecute corruption cases in Laos. In July, the Attapeu Provincial People’s Court sentenced 15 officials for corruption, with 10 receiving life sentences.
The court found that the scheme moved roughly LAK 103.5 billion (USD 4.8 million), USD 2.36 million and VND 1.5 billion (USD 58,000) between 2021 and 2024. Confirmed state losses totaled about LAK 51.9 billion (USD 2.4 million), USD 2.32 million and THB 60,000 (USD 1,850).
On July 1, the Vientiane Capital People’s Court sentenced 17 defendants in four major corruption cases involving the State Inspection Authority, Bank of the Lao PDR, Agricultural Promotion Bank, Ministry of Foreign Affairs, and Electricity of Laos (EDL).
At least 10 people received life sentences, and the courts ordered the seizure of cash, land, vehicles, and bank accounts. The cases included corruption, bribery, abuse of office, embezzlement, fraud, and document forgery.
EDL Exectutives
In one case, Thai businessman Aphichart Vannakul and four former EDL executives were all given life sentences. Aphichart was ordered to pay more than USD 24.8 million to EDL, with his assets authorized for seizure and sale.
The State Inspection Authority reported in November 2025 that investigators had uncovered corruption involving 334 people between 2021 and 2025, resulting in losses of over LAK 642.93 billion (USD 28.9 million), plus additional losses in US dollars, Thai baht, Chinese yuan, and Vietnamese dong. Authorities forwarded 86 suspects for prosecution and secured 23 convictions.
Several investigations have focused on EDL.
In March 2025, authorities arrested its former deputy director and four contractors in connection with the alleged misuse of about USD 90 million in state assets. In September 2025, two more former EDL officials were detained over alleged corruption linked to two transmission line projects.
