Thailand construction contract mismanagement leads to big loss

[webfact]

Inefficient management of construction contracts in Thailand during the 2023 fiscal year led to financial losses exceeding 30 billion baht, according to a spokesperson from the State Audit Office (SAO).

 

SAO spokesperson Sutthipong Boonnithi revealed that these figures emerged from the SAO’s annual audit, which examined over 14,148 projects and contracts across 9,426 public agencies nationwide. The audit identified budget management flaws in 1,795 agencies, accounting for 19% of those reviewed.

The SAO detected abnormal spending totalling at least 30.83 billion baht.

 

In response, the SAO issued conditional recommendations to improve 629 out of 8,575 financial reports under audit for accuracy. Sutthipong noted that most of these discrepancies involved major expenditures with incomplete bookkeeping or errors in record-keeping, often related to cash, land, and real estate properties.

The audit also found that 2,638 out of 5,318 contracts, or nearly 50% of the total cases, failed to comply with legal requirements or contractual obligations, resulting in damages amounting to around 666 million baht.

Sutthipong highlighted several abnormalities, including violations of middle market price estimation, unclear contract statements, tax collection issues, and breaches of contract terms. Flaws were identified in 151 out of 157 cases, or around 96%, of government agencies, including both central and provincial offices, examined for efficient use of state funds.

 

“The inefficiencies included proposals that were incomplete or poorly prepared for project operations, as well as delayed timelines.”

 

Sutthipong noted that the total damage was at least 30.16 billion baht.

 

Sutthipong also pointed out potential issues with the construction contract for the Rama II elevated road project, suggesting that the project may not yield satisfactory results. He recommended that all related sectors cooperate to reduce the construction timeline from eight to five months to improve budget management efficiency.

 

The 10.5-billion-baht project, which has gained notoriety for its delays, is expected to be completed in November, reported Bangkok Post.

 

In related news, two construction workers were critically injured after one was electrocuted by a high-voltage wire, causing him to fall from a two-story building. The incident occurred on July 31 at a construction site near Wat Phlapphla in Chanthaburi province.

 

by Puntid Tantivangphaisal
Photo courtesy of @StateauditThai on X

 

Source: The Thaiger 2024-08-07

 

-  Cigna offers a variety of health insurance plans designed to meet the minimum requirement for medical treatment coverage, with benefits reaching up to THB 3 million. These plans are tailored to provide comprehensive healthcare solutions for expatriates, ensuring peace of mind and access to quality medical services. To explore the full range of Cigna's expat health insurance options and find a plan that suits your needs, click here for more information.

 

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[JoePai]

Well who would have thought that    

[2baht]

28 minutes ago, webfact said:

the 2023 fiscal year led to financial losses exceeding 30 billion baht

Congrats to the winners!

[stoner]

41 minutes ago, webfact said:

Inefficient management of construction contracts in Thailand during the 2023 fiscal year led to financial losses exceeding 30 billion baht

 

that's one way of putting it. 

[brianthainess]

58 minutes ago, webfact said:

2023 fiscal year led to financial losses exceeding 30 billion baht, according to a spokesperson from the State Audit Office (SAO).

Is that all the losses they found ? well it does say Exceeding 30 billion so............

[MarkBR]

2 hours ago, webfact said:

Inefficient management of construction contracts in Thailand during the 2023 fiscal year led to financial losses exceeding 30 billion baht, according to a spokesperson from the State Audit Office (SAO).

 

SAO spokesperson Sutthipong Boonnithi revealed that these figures emerged from the SAO’s annual audit, which examined over 14,148 projects and contracts across 9,426 public agencies nationwide. The audit identified budget management flaws in 1,795 agencies, accounting for 19% of those reviewed.

The SAO detected abnormal spending totalling at least 30.83 billion baht.

 

In response, the SAO issued conditional recommendations to improve 629 out of 8,575 financial reports under audit for accuracy. Sutthipong noted that most of these discrepancies involved major expenditures with incomplete bookkeeping or errors in record-keeping, often related to cash, land, and real estate properties.

The audit also found that 2,638 out of 5,318 contracts, or nearly 50% of the total cases, failed to comply with legal requirements or contractual obligations, resulting in damages amounting to around 666 million baht.

Sutthipong highlighted several abnormalities, including violations of middle market price estimation, unclear contract statements, tax collection issues, and breaches of contract terms. Flaws were identified in 151 out of 157 cases, or around 96%, of government agencies, including both central and provincial offices, examined for efficient use of state funds.

 

“The inefficiencies included proposals that were incomplete or poorly prepared for project operations, as well as delayed timelines.”

 

Sutthipong noted that the total damage was at least 30.16 billion baht.

 

Sutthipong also pointed out potential issues with the construction contract for the Rama II elevated road project, suggesting that the project may not yield satisfactory results. He recommended that all related sectors cooperate to reduce the construction timeline from eight to five months to improve budget management efficiency.

 

The 10.5-billion-baht project, which has gained notoriety for its delays, is expected to be completed in November, reported Bangkok Post.

 

In related news, two construction workers were critically injured after one was electrocuted by a high-voltage wire, causing him to fall from a two-story building. The incident occurred on July 31 at a construction site near Wat Phlapphla in Chanthaburi province.

 

by Puntid Tantivangphaisal
Photo courtesy of @StateauditThai on X

 

Source: The Thaiger 2024-08-07

 

-  Cigna offers a variety of health insurance plans designed to meet the minimum requirement for medical treatment coverage, with benefits reaching up to THB 3 million. These plans are tailored to provide comprehensive healthcare solutions for expatriates, ensuring peace of mind and access to quality medical services. To explore the full range of Cigna's expat health insurance options and find a plan that suits your needs, click here for more information.

 

Get our Daily Newsletter - Click HERE to subscribe

Cui boni.

[n00dle]

Gotta make hay while the sun shines. nobody expected the outgoing Prayut administration and its hangers-on to subsist solely on pensions and legitimate income

[hotchilli]

4 hours ago, webfact said:

In response, the SAO issued conditional recommendations to improve 629 out of 8,575 financial reports under audit for accuracy. Sutthipong noted that most of these discrepancies involved major expenditures with incomplete bookkeeping or errors in record-keeping, often related to cash, land, and real estate properties.

The audit also found that 2,638 out of 5,318 contracts, or nearly 50% of the total cases, failed to comply with legal requirements or contractual obligations, resulting in damages amounting to around 666 million baht.

Business as usual in Thailand.... 

[hotchilli]

3 hours ago, 2baht said:

Congrats to the winners!

 

4 hours ago, webfact said:

Sutthipong noted that most of these discrepancies involved major expenditures with incomplete bookkeeping or errors in record-keeping, often related to cash,

 

[john donson]

15-20% corruption on top to get shady contract awarded

[klauskunkel]

and that's only for construction contracts...

[PETERTHEEATER]

4 hours ago, stoner said:

 

that's one way of putting it. 

Not so much 'financial losses' as financial thefts.

[Srikcir]

6 hours ago, webfact said:

Flaws were identified in 151 out of 157 cases, or around 96%, of government agencies, including both central and provincial offices, examined for efficient use of state funds.

Should the Head of Government such as Prayut 2014-2023) be personally responsible for the costs of mismanagement? But it might be a coincident that he is now likely untouchable.

[newbee2022]

Mismanagement in Thailand?

Unbelievable 😂