Laos to monitor state investments

The country’s Planning and Investment Ministry has pledged to monitor both new and old state investment projects to ensure the government budget is being put to the most effective use, while also addressing any irregularities.
The pledge came after reports suggested that some state departments had carried out unapproved projects, unreasonably costly projects, and even “ghost” projects for which a budget had been allocated and disbursed but nothing had materialised. Planning and Investment Minister Somdy Duangdy said that amid current budget constraints, there was a pressing need to ensure that money was well spent.
Somdy spoke to the media at a press conference during a three-day meeting among the cabinet, the mayor of Vientiane and provincial governors.
The minister promised that officials would do their best to ensure the proper management of state investment projects, especially those costing 100 billion kip (Bt434 million) or more.
“The Ministry of Planning and Investment will coordinate with the relevant sectors and entrust a task-force committee to inspect mega-projects,” he said.
Early inspections of new state investment projects will be carried out, while projects that have been completed will also be inspected to evaluate whether the investment cost is reasonable, he said.
“We will ask the government and the National Assembly to consider suspending less important projects,” he said. Recognising that some state bodies have carried out projects without approval from the National Assembly (NA), the minister said the committee would assess whether these projects had been fully implemented and whether the investment cost was reasonable.
“The committee is required to report the findings to the government and the NA to seek guidance,” Somdy said.