More than 20 state officials dismissed over financial fraud

The Ministry of Finance has fired more than 20 civil servants after discovering their involvement in financial fraud, notably the embezzlement of revenue, a deputy prime minister has said.
The dismissals took place in 2019, Mr Somdy Duangdy told the ongoing 10th ordinary session of the National Assembly (NA) recently.
About another 20 officials were disciplined in other ways, he added.
Mr Somdy, who is Minister of Finance, pledged further action to address the ongoing problem of revenue leaks, with tough measures to be imposed on those involved.
The deputy prime minister was responding to questions raised by members of parliament about the steps the government is taking to tackle revenue leaks and hold those responsible to account.
Assembly members noted that officials had collected taxes and tariffs but did not hand over the full amount to the state budget, causing considerable loss.
Mr Somdy admitted that in some cases it appeared that business operators had conspired with officials so they could pay less tax than required by law.
Inspections also showed that the amount of revenue collected did not match the actual value of imported goods.
Mr Somdy explained that officials in charge of imports provided a genuine figure but that the revenue collected was smaller than it should be – a clear indication of embezzlement by customs officials.
“Although we have strived to address and minimise leaks in recent years, the problem persists,” Mr Somdy told the session.
He called on Assembly members to keep their eyes open for any irregularities and to inform his ministry if they suspected misconduct.
“Please provide us with information. It is our ministry’s mandate to address this issue. We will strictly enforce the law,” Mr Somdy said.  
He informed the session that authorities would soon carry out investigations into customs officials in Xekong province after discovering irregular activities.
To minimise revenue leaks, the DPM said his ministry is pushing for electronic payments, especially the payment of taxes through banking systems.
Many medium and large businesses are already paying taxes using a cashless e-payment system.
“We have set a target for 70 to 80 percent [of businesses] to pay taxes through banks by 2021,” Mr Somdy said, adding that this would prevent underhand negotiations about reducing the amount of tax paid.
Prime Minister Thongloun Sisoulith has formed a taskforce headed by Mr Somdy to study ways to enable small businesses to trade online using smartphones, with taxes also to be paid using the online system.
He told parliament it could take some time to develop such a system.
The Ministry of Finance and the Ministry of Industry and Commerce have agreed to strictly enforce the Value-Added Tax (VAT) law, requiring all businesses who meet the criteria to be a part of the VAT system.
Many businesses have yet to do so because they do not want to have an official accounting system, which enables them to avoid paying the full amount of taxes owed.
“Businesses reluctant to join VAT system will be warned. If they still do not do so after warnings, they will have their business licence revoked,” Mr Somdy warned.

By Souksakhone Vaenkeo
(Latest Update November 9, 2020)