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Government bodies misuse state funds: Auditor
A number of government agencies have misused state funds after failing to hand over revenues to the Ministry of Finance, a top state auditor said yesterday.
State Auditing Authority President Mr Bouasy Lorvanxay told the ongoing session of the National Assembly (NA) yesterday that state auditors had found that several ministries and provincial administrations had not handed over a total of 31 billion kip in state service fees collected in 2008-09 to the Ministry of Finance.
Under the Budget Law, all ministries and provincial administrations that collect state service fees must hand over all such revenues to the government for inclusion in the national budget.
All ministries and provincial administrations receive an annual budget from the government and therefore have no right to use the state service fees they collect.
Mr Bouasy also said some provincial authorities benefitted from selling timber but did not hand over the income to the government in accordance with the law, while other provincial bodies carried out investment projects which had not received approval from the NA.
The State Auditing Authority estimates that the value of unlisted state investment projects in the 2008-09 fiscal year reached 577 billion kip, creating unbudgeted debts that the central government must cover.
A number of NA members who hold top government positions defended the use of state revenues collected from daily administration work as well as the implementation of investment projects without approval from the NA, saying many government bodies do not receive sufficient funds from the government to cover their own expenditure plans.
They also said it was often necessary to spend funds in cases of emergency for the smooth operation of relief efforts in the face of floods, drought or other natural disasters.
Many provincial authorities have allowed private companies to invest in state investment projects while pledging to repay construction costs over the next five years using state budgets.
However, some officials have warned that allowing private companies to invest in state projects without conducting proper tender processes means the state will lose more than it gains.
One NA member said it was necessary to have a system in place to follow up the results of state audits, adding that many government agencies have broken the law but none are expected to be punished.
Another NA member said the government must amend the budget law to match the current situation; for example, enabling the government to use state funds for emergency purposes during natural disasters.
vientiane times
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