Forestry Investment Blog

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Forestry Bribes Increasing

Posted by John Barnes On February - 8 - 2010

Despite an ongoing crackdown the number of forestry officials in Laos taking bribes is increasing according to Rangsy Sibounheuang the deputy chief public prosecutor.

According to Sibounheuang logging companies in central Laos have been bribing officials to cut logs beyond their government approved quotas. “If a lumber company’s quota allows them to cut 1,000 cubic meters (35,300 cubic feet) of wood, they will cut 1,500 cubic meters (53,000 cubic feet) instead and then bribe the inspectors for the difference,” he said. “This is happening primarily in Savannakhet and Khammuan provinces and the recipients of the bribes are mainly middle-level officials — we‘ve convicted some of them already.”

But after two to three years of increasing incidents involving bribery of forestry officials the number is finally slowing. This is largely due to stricture penalties, which have been an effective deterrent to would-be offenders.

“[The bribery] is now decreasing because we have been giving out stiff penalties. If the incident is serious enough, it will merit jail time and fines,” he said, adding that penalties differ from case to case and also depend on the level of the official involved.

In the main the bribing of Lao forestry officials is principally committed by logging companies although individuals continue wide scale logging throughout Laos. “It’s not just companies, but also citizens without permits. Citizens continue to illegally cut logs in national forestry preserves as well as in national parks,” Sibounheuang said.

A recent World Bank report stated that a low population density and moderate rate of natural resource exploitation in comparison with neighbouring countries has allowed considerable amounts of natural resources in Laos to survive. However the report named those same natural resources as playing a significant role in supporting rural communities and contributing towards the national economy. In particular Laos enjoys a forest cover that is significantly higher than its neighbours. This is precisely the type of natural resource that attracts investment from abroad.

A wave of foreign investment from China, Thailand and Vietnam is bringing economic growth and generating jobs in Laos but this is also increasing pressure on land and local communities who exploit the country’s natural resources.

“Forest cover has declined from 70 percent to 43 percent over the last 50 years, largely due to clearing of lowland forest for permanent agriculture and unsustainable logging,” the report said.

“If no action is taken to change this trend, Lao’s forests will dwindle to 31 percent by 2020,” the WWF said.

The report also named timber and hydropower as the country’s primary exports, which accounts for two-thirds of total export value.

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