ENHANCING INVESTIGATIVE ABILITY IN CORRPTION CASES
Phongsavanh Phommahaxay*

It is my great honor and pleasure to participate in this seminar on enhancing investigative
ability in corruption cases, held by UNAFEI in Kuala Lumpur, Malaysia. On behalf of theGovernment Inspection Authority of Lao PDR, I would like to take this opportunity to express
my deepest, sincere thanks to the Malaysian Anti-corruption Academy and especially UNAFEI
for the invitation and for their great support for our participation in this important event.
I. INTRODUCTION
Corruption is a widespread phenomenon across the world, in both developed anddeveloping countries. Corruption results in serious and social concern, it erodes the rule of law;undermines good governance; hampers economic growth; inhibits the enjoyment of property;
impinges upon competitive and fair business conditions, and, undermines democracy and humanrights. Fighting and eliminating corruption is a very necessary, difficult and complex process.
Fighting corruption requires determination and persistence from political leadership; support
from citizens; and co-operation and support from the region, international community andinternational organizations. Corruption became and is becoming harmful to the stability andsecurity of each country. It is a problem that countries and international organizations must fight
together.
Lao P.D.R is in particular experiencing the harm of corruption occurring at different levels
and in many areas of activity such as in public management, in investment on infrastructure
construction, use of governmental fund properties, collecting tax and duties for the public treasury,
abuse function and position by public officers-civil servants, accepting and giving bribes, etc.,
including in 12 behaviors of corruption under identified law of anti-corruption of Lao P.D.R. The
corruption could not fully ensure the quality of various investment projects. It becomes an obstaclefor development missions of the country, affects negatively the public governance andadministration, as well as obstructs and slows the growth of our Lao People’s Democratic Republic.
Due to danger of the said corruption, investigating corruption cases is a difficult andcomplex process so the government of Lao PDR puts importance and is very attentive to obstruct
and fight against corruption.

*
Deputy of Investigation Division, Anti-Corruption Inspection Department, Government Inspection Authority,
Lao PDR.

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II. ISSUING AND IMPROVEMENT OF LEGISLATION.
Over the last several years, the National Assembly and the Lao government issued manylaws to counter corruption and prevention, for example: (1) in 2005, the government issued thedecree on the economy and to counter the dissipation of government assets, (2) in 2012, theNational Assembly amended the law on anti-corruption by adding provisions covering the Laopopulation, including foreigners living in Lao PDR, and by assigning the Anti-Corruption
Authority to fully investigate corruption cases and to interrogate suspects. The government also
approved the strategic plan of Anti-Corruption to 2020, issued a decree on property declaration
by public civil servants that will be effective from 2014, and some other legislation.
III. PREVENTION AND ANTI-CORRUPTION ACTIVITIES
1. The administration authorities and the Government Inspection Authority at different levels
are attentive to educating public civil servants, soldiers, policemen and villagers to grasp
deeply the laws, regime regulations relating to anti-corruption, strategy and action plan for
implementation of strategy until the year 2020 under various forms and methods such as:organizing seminar workshops at different levels and promoting anti-corruption efforts via
the media, including the print media and others. After education, public civil servants and thegeneral public will recognize, understand and be more conscientious of respecting the laws
and regulations and will participate in the prevention of and the fight against corruption.
2. We are attentive to improving organizational structures at different levels and haveregulations to manage and close the gaps causing corruption. This will make the government
structure more transparent and powerful. We have also improved the benefits regime,
including salaries and bonuses for civil servants, in order to respond to their necessary
livelihood needs.
3. The Government Inspection and Anti-Corruption Authority at all levels ensures regularmonitoring as planned under the order, request and recommendations of citizens about theperformance of officials and civil servants in different sectors. Previously, the Government
Inspection and Anti-Corruption Authority at the national level has collaborated with theGovernmental Inspection and Anti-Corruption Authority of concerned Ministries and some
Inspection Committees at the local level to realize inspection of certain targets as follows:— In 2007, an investigation into the timber business in Savannakhet province was done,
and some government officers and private businessmen accomplices who illegally
harvested 1,400 m3 of prohibited timber (Nile wood) were identified. Eleven public
officers were fired. An officer of the National Treasury at the Champassak affiliate
and his accessory embezzled State property in the amount of more than LAK 5.1
billion, and these persons were prosecuted. In Khammouane province, a difference of
12 billion kips of the construction project’s value was identified after inspection of aroad construction project in one of the province’s municipalities.
— The 2010-2011 investigation of a construction project to serve the 25th SEA GAMES
identified damages at a cost of more than $US 1.5 million and many hundreds ofmillions of kips. In some provinces, we conducted an investigation for embezzlement- 89 -

and identified damages at a cost of more than 10 billion kips that involved more than
50 government officials. Currently, we are using our regulations and laws to collectthese moneys on behalf of the Government.
— During 2012-2013, the national and local authorities inspected 104 targets andidentified damages amounting to more than 80 billion kips. Some of these funds werecollected, and there were 472 wrongdoers. The offences included 178 embezzlements,
62 frauds, 50 briberies, 88 abuses of power, 22 cases of public officials exceeding
their authority, 64 counterfeiters of documents. These wrongdoers have beenprosecuted under the regulations and laws.
These investigations confirm the application of prevention and anti-corruption measuresthat have been implemented in Lao PDR.
IV. THE GOVERNMENT INSPECTION AND ANTI-CORRUPTION AUTHORITY’SORGANIZATIONAL STRUCTURE
The organizational system of the Government Inspection and Anti-Corruption Authority
includes:1) Government Inspection and Anti-Corruption Authority;2) Department of Ministerial and Organizational Inspection3) Government Inspection Service at the provincial level and the Vientiane Capital
Inspection Service;4) Inspection Office of District, Municipality and Inspection Sections under the Provincial
Service and the Vientiane capital
The roles, duties and rights of the Government Inspection and Anti-Corruption Authority
at different levels are identified in the law concerning anti-corruption, the law on Government
Inspection, the law on resolving complaints and other related laws.
V. THE AGENCIES AND ORGANIZATIONS INVESTIGATING CORRUPTION CASESIn Lao PDR, there are many organizations that investigate corruption cases, especially thegovernment inspection authority, which coordinates with other investigation organization suchas:
1. The investigation organization of the police
2. The investigation organization of military officers
3. The investigation organization of customs officers
4. The investigation organization of forestry officers- 90 -

5. The investigation organization of counter-corruption organizations
Investigating corruption cases is the duty of counter-corruption organizations at thecentral level and provincial level, if there are reports of corruption cases at the central level,
provincial level or organization sector. Each organization will inspect its own officers who
engage in corrupt practices.
A.

Counter-Corruption Organization
The Counter-Corruption Organization is a state organization that has the role to preventand counter corruption within the country by assigning to the State Inspection Authority at thecentral level and state inspection authorities at the province level to implement (this task). The
Counter-Corruption Organization is an investigative organization and performs its duties
independently.
B.

Rights and Duties of Investigation Officers
The staff of each investigative organization consists of the head, deputy heads, andinvestigators. The head of each investigative organization has the following rights and duties:
1.

To direct and lead the overall activities of the investigative organization;2.

To issue orders to open or not to open investigations, to issue orders to suspend or
dismiss criminal cases, and to issue orders to detain or release any person fromdetention;3.

To propose to the public prosecutor to issue orders to arrest, remand, or release
before sentencing any person, to extend the period for investigations, and to extend
the period of remand;4.

To summarize and prepare the case file to submit to the public prosecutor forconsideration after the completion of the investigation;

5.

To exercise such other rights and perform such other duties as provided by law.

Each deputy head of an investigative organization has the responsibility to assist the headof the investigative organization in the implementation of activities and will be assigned toperform specific tasks as assigned by the head. When the head of the organization is engaged inother matters, the assigned deputy will act on his behalf.
Each investigative officer has the following rights and duties:
1.

To receive and record complaints, reports or claims relating to offences;2.

To take testimony from the injured party, civil plaintiff, accused person, witnesses,
and other concerned persons;- 91 -

3.

To inspect the site of the incident, to conduct “inspections of dead bod[ies]”, toconduct searches of buildings, vehicles, and persons, and to collect evidence
relating to the offence;4.

To look for, arrest, and escort accused persons, according to the order of thepeople’s courts or public prosecutors;

5.

To implement orders and to report on the status of proceedings in criminal cases tothe head of the investigative organization;

6.

To exercise other rights and perform other duties according to the order of thehead of the investigative organization and as provided by law.

The exercise of rights and performance of duties of the staff of an investigative
organization shall be carried out according to the scope of its authority as provided by law.
To ensure the exercise of the rights and the performance of the duties mentioned above,
each investigative officer shall have strong political commitment, have good character, be truly
faithful to the interests of the nation and the rights and interests of the people, have ethics, andhave received education or training in law and in technical subjects relating to investigation.
VI. CORRUPT ACTS AND MEASURES FOR INVESTIGATING CORRUPTION CASES
Corruption is the act of an official who opportunistically uses his position, powers, andduties to embezzle, swindle or receive bribes or any other act provided for in Article 12 of thelaw, which act is committed to benefit himself or his family, relatives, friends, clan, or group andcauses damage to the interests of the State and society or to the rights and interests of citizens.
The officials stipulated in this law means leaders at all levels, administrative staff,
technical staff, the staff of State enterprises, civil servants, soldiers, and police officers, including
chiefs of villages and persons who are officially authorized and assigned to exercise any right or
duty.
Acts that constitute corruption can take the following forms:• Embezzlement of State property or collective property;• Swindling of State property or collective property;• Taking bribes;• Abuse of position, power, or duty by taking State property, collective property or
individual property;• Abuse of State property or collective property;- 92 -

• Excessive use of position, power, or duty by taking State property, collective property or
individual property;• Cheating or falsification relating to technical construction standards, designs,
calculations, and others;• Deception in bidding or concessions;• Forging documents or using forged documents;• Disclosure of State secrets for personal benefit;• Holding back or delaying documents.
A.

Abuse of Position, Power or Duty
Abuse of position, power or duty by taking State property, collective property or
individual property is the use of one’s position, power, or duty in order to benefit oneself, or
one’s family, relatives, or clan that causes damage to the interests of the State and collectives or
the rights and interests of citizens.
B.

Excessive Use of Position, Power or Duty
Excessive use of position, power, or duty is the intentional use of position, power, or duty
beyond the scope of the authority provided by the laws and regulations in order to benefit oneself,or one’s family, relatives, or clan that causes damage to the interests of the State and collectives
or the rights and interests of citizens.
C.

Measures for Dealing with Corruption
The use of measures to counter the corruption of any government employee who commits
an offence relating to corruption is based on the severity of the offence. If it is a minor offence,
there will be education measures and imposition of disciplinary measures; if it is a serious
offence, it will be subject to legal proceedings as provided under the laws.
D.

Education Measures
If, through the inspection, a minor offence is found, and the offender honestly reports theoffence, and admits to the concerned organization that he committed the offence and returns all
assets that he took away, he will be subject to education measures and a warning.
VII. THE OUTLINE OF INVESTIGATIVE PROCEDURES
Corruption is the act of an official who opportunistically uses his position, powers, or
duties to embezzle, swindle or receive bribes. The following factors often lead to the opening of acorruption investigation:-

when firm information and evidence that an act constituting corruption has beencommitted is found;- 93 -

-

when there is a notification, submission, proposal, report, or claim regarding
corruption;-

when any government employee, or husband, wife or child under the charge of suchgovernment employee, appears to be unusually rich.

A.

Case Proceedings
If, after the inspection and investigation, there appears to be solid information andevidence, the Counter-Corruption Organization shall make a summary of the inspection result,complete the file of the case and then send it to the public prosecutor to consider bringing aprosecution in court.
In the event that the public prosecutor fails, without reason, to prosecute the case in court
within 30 days from the date of receiving the case file, the counter-corruption organization has
the right to submit the case to a higher-level public prosecutor to consider and deal with the issue.
B.

Order to Open an Investigation
In the case where there is sufficient information relating to the offence of corruption, thehead of the investigative organization of a counter-corruption organization, or a publicprosecutor, shall issue an order to open an investigation within the scope of their respective
authorities. The contents of that order shall set out the date, time, and location of the issuance ofthe order, the name, surname, position, and title of the issuer and the investigator, the informationthat is the basis for opening the investigation, the location of the offence, and the relevant articleof the Penal Law.
If the investigator issues an order to open an investigation, he shall immediately reportthat fact to the public prosecutor. If there is insufficient information to open an investigation or
there is cause for the dismissal of the criminal case, the head of the investigative organization or
the public prosecutor shall issue an order not to open an investigation and shall also inform theindividuals or organizations that have brought the claim or complaint of such order.
Parties on either the plaintiff’s or the defendant’s side can appeal to the public prosecutor
against an order not to open an investigation issued by the head of an investigative organization.
Parties on either the plaintiff’s or the defendant’s side can appeal to a higher-level publicprosecutor if such order not to open an investigation is issued by the public prosecutor withinseven days from the day they have been informed of such order.
Types of investigative measures are:• Taking testimony;• Questioning, interviewing and interrogating;• Inspection of the incident site;• Inspection of bodies;- 94 -

• Search of buildings, vehicles, or persons;• Seizure and sequestration of assets;• Re-enactment;• Identification and confirmation.
First, when an inspection official receives a report of corruption, the inspection official
will summarize the information for the head of the relevant anti-corruption agency to consider. If
the head of the anti-corruption agency agrees with the report and authorizes an inspection, theinspection official will conduct inspections in accordance with the procedures specified by law. If
the inspection reveals firm evidence, we will conduct an investigation and coordinate theinvestigative police handling the corruption case.
VIII. PROBLEMS OF INVESTIGATING CORRUPTION CASES-

Legislation on inspection, investigation of corruption cases and anti-corruption operations
remains insufficient, and we need to continue to take more legislative action. The existinglaws are not rigorous enough, and the practice is equally insufficient.

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The conscience of civil servants and citizens regarding regulation and law compliance, as
well as their practice of discipline, are not really serious. In practice, some leaders and many
administration authorities violate the laws and regulations.

-Inefficiencies in government organizational structure, mass organizations and the roles ofcivil servants remain one of the problems that must be actively solved, especially in terms ofthe delay of the performance of duties, incoherence of anti-corruption regulation, nontransparency in the performance of some officials’ duties and other issues causing a negative
image of leadership and governance.

-

Within our Inspection Authority, despite our effort to amend, we still have many difficulties,
such as, in reality, we are the sole authority with many responsibilities, a limited number ofstaff, budget and other conditions to ensure adequate performance; limited training andexperience on government inspection, investigation of corruption cases and anti-corruption
efforts, and other difficulties that we need to successively and actively improve.
IX. SOLUTIONS TO INVESTIGATING CORRUPTION CASES AND IMPROVINGANTI-CORRUPTION EFFORTS IN LAO PDR

1. Continue to strengthen political and conceptual education, build awareness, build consciousness
on respect for the rule of law and provide good recognition and understanding about prevention
and anti-corruption.
2. Consider, disseminate and implement deeply and entirely different legislation relating toprevention and anti-corruption, and apply them in all sectors of society.

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3. Consider the amendment of prevention and anti-corruption legislation already in use but
underutilized. At the same time, we could consider the creation of new rigorous and coherent
legislation, and coherent with international treaties to which Laos is a member, build
regulatory mechanisms and conditions allowing the public and all citizens to become
involved in prevention and anti-corruption.
4. Improve and strengthen organizations and officials working on corruption investigations, inparticular their roles, duties, rights frameworks, mechanisms, regimes and procedures ofactivities practiced by the Government Inspection and Anti-Corruption Authority; train andupgrade their degrees, professional skills and capacities, behaviour, professional consciencesof the staff working on corruption investigations at the central level and provincial level.
5. Continue to strengthen relationships, collaboration and exchange experiences on corruption
investigations and anti-corruption activities with friendly countries and importantly the member
countries of SEA-PAC, and regional and international organizations
6. Strengthen the responsibilities of the government, administration authorities at all levels forthe inspection, investigation of corruption cases and anti-corruption efforts. Once the corrupt
behaviours are identified, we must respond rigorously, absolutely and on time as determined
under the law.
7. The governmental organizations, private sector and citizens must be actively responsible toparticipate strongly and efficiently in inspection, investigation of corruption cases, prevention
and anti-corruption activities by prioritizing prevention.
X. CONCLUSION
Lao PDR has laws and procedures for investigating corruption cases, but coordination
between government inspection authority and each investigative organization is poor.
Furthermore, reporting of corruption cases by citizens and other organizations to the State is low.
Therefore, I would like to learn about the experiences of each participant in order to enhanceinvestigation at my organization.

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