Companies entering government contracts must declare revenues and expenditures, or face blacklisting

[Lite Beer]

Companies entering government contracts must declare revenues and expenditures, or face blacklisting

BANGKOK: -- Private companies awarded contracts by both central and local government agencies are required to declare their revenues and expenditures by the end of this month otherwise they will be banned from doing business with the government forever.

According to the National Anti-Corruption Commission (NACC), companies failing to abide by these new rules will be blacklisted and not allowed to participate in any future project biddings.

They have until the end of this month to disclose their revenue and expense accounts of project worth more than 2 million baht which they are contractual with government agencies.

Failure to do so, the NACC will announce their names and they will appear on its blacklist next month.

The NACC now as a list of as many as 1,000 companies which entered contracts with government agencies, and they have over 70,000 revenue and expense accounts of projects still not not declared under the regulation.

Some of these companies hold as many 50-60 contracts with the government.

The blacklisting is one of the anti-corruption measures that the NACC is keen to enforce to prevent graft between government agencies and their private contractual partner.

The anti-corruption regulation requires companies which enter into contract worth more than 2 million baht with the government to disclose revenue and expense accounts of the project to the Comptroller General Department, the Revenue Department and the NACC for examination.

The NACC will notify companies within 15-30 days if they fail to disclose this information.

This will allow the state agencies to check on how companies spend their budget on the project.

If the NACC finds any irregularity in the project, it can also blacklist the company. Blacklisted companies will be banned from acquiring any procurement contract with the government forever.

The list of blacklisted companies will be published on the NACC’s website.

Head of a state agency which continues to do business with these companies will be subject to disciplinary action and criminal charge.

NACC deputy secretary-general Chairat Khanittabuth said once the national budget is disbursed, the NACC wants to check how these companies spend the money on the project.

“If we found any of their expense to be unusually high, we would look into it and see whether it involves any bribery, ” he said.

According to the NACC, most of irregularities are found in projects associated with local government agencies, with more than 80 percent of the projects concerning procurement and construction.

It is estimated that 20-30 percent of the government’s annual investment budget is lost to corruption and this proactive anti-corruption measure could save the country 140-210 billion baht each year.

Source: http://englishnews.thaipbs.or.th/companies-entering-government-contracts-must-declare-revenues-and-expenditures-or-face-blacklisting

-- Thai PBS 2015-08-08

[Pimay1]

The Phuyai Ban in this village is going to hate this regulation.

[worgeordie]

Does this mean there will be lots of contracts slightly

under 2 Million THB, wonder if the tax man will be taking

an interest too.

regards worgeordie

[metisdead]

An off topic post has been removed.

[halloween]

While you're at it, get a list of company directors from the banned companies as well, and ban any future company they are associated with. Put spouses and other close family members on a grey list for closer inspection than a clean sheet. Forming a new company is cheap, peanuts compared with the spoils available.

[smutcakes]

Maybe it should be the officials in the Government who put out the tenders and accept/encourage the bribes who should be under the microscope. If they did not accept them, and reported any attempted bribery promptly, it would soon hopefully become much less common place.

[rubl]

Maybe it should be the officials in the Government who put out the tenders and accept/encourage the bribes who should be under the microscope. If they did not accept them, and reported any attempted bribery promptly, it would soon hopefully become much less common place.

Let's do both.

Especially government officials (as in the bureaucrats) tend to see 'their' budgets as 'THEIR' budgets. After twenty or so years in office they don't see the difference. Up to a point difficult to blame them, it's part of that Thainess it would seem. Education of a new generation seems to be needed.

[phoenixdoglover]

Maybe it should be the officials in the Government who put out the tenders and accept/encourage the bribes who should be under the microscope. If they did not accept them, and reported any attempted bribery promptly, it would soon hopefully become much less common place.

Agree.

Corruption starts with government officials who are permitted to operate in a non-transparent way.

Edited August 8, 2015 by phoenixdoglover

[heybruce]

Maybe it should be the officials in the Government who put out the tenders and accept/encourage the bribes who should be under the microscope. If they did not accept them, and reported any attempted bribery promptly, it would soon hopefully become much less common place.

Let's do both.

Especially government officials (as in the bureaucrats) tend to see 'their' budgets as 'THEIR' budgets. After twenty or so years in office they don't see the difference. Up to a point difficult to blame them, it's part of that Thainess it would seem. Education of a new generation seems to be needed.

Geez, I finally agree with rubl. Transparency in government contractors is good, but transparency in government and government contractors is necessary to significantly reduce corruption.

[phoenixdoglover]

Maybe it should be the officials in the Government who put out the tenders and accept/encourage the bribes who should be under the microscope. If they did not accept them, and reported any attempted bribery promptly, it would soon hopefully become much less common place.

Let's do both.

Especially government officials (as in the bureaucrats) tend to see 'their' budgets as 'THEIR' budgets. After twenty or so years in office they don't see the difference. Up to a point difficult to blame them, it's part of that Thainess it would seem. Education of a new generation seems to be needed.

Geez, I finally agree with rubl. Transparency in government contractors is good, but transparency in government and government contractors is necessary to significantly reduce corruption.

Yes, but...

It starts with the government agencies. They would be much easier to control. In the private sector, companies (subsidiaries, partnerships, joint ventures etc.) come and go, sometimes purposefully to avoid scrutiny. But government agencies and their bureaucratic denizens are much more sedentary and slow-changing. This makes them much easier targets for regulation, audit, and opening prosecutions. (Don't ask me how I know this )

[rubl]

Maybe it should be the officials in the Government who put out the tenders and accept/encourage the bribes who should be under the microscope. If they did not accept them, and reported any attempted bribery promptly, it would soon hopefully become much less common place.

Let's do both.

Especially government officials (as in the bureaucrats) tend to see 'their' budgets as 'THEIR' budgets. After twenty or so years in office they don't see the difference. Up to a point difficult to blame them, it's part of that Thainess it would seem. Education of a new generation seems to be needed.

Geez, I finally agree with rubl. Transparency in government contractors is good, but transparency in government and government contractors is necessary to significantly reduce corruption.

Yes, but...

It starts with the government agencies. They would be much easier to control. In the private sector, companies (subsidiaries, partnerships, joint ventures etc.) come and go, sometimes purposefully to avoid scrutiny. But government agencies and their bureaucratic denizens are much more sedentary and slow-changing. This makes them much easier targets for regulation, audit, and opening prosecutions. (Don't ask me how I know this )

The very fact that government bureaucrats are more sedentary makes it essential to make a move aimed at them. Governments come, governments go, but those bureaucrats remain.

[maoro2013]

Does this mean that companies do not routinely file annual accounts??

[wabothai]

I wonder whether there is enough manpower in the form of auditors to make this rule standing.

Good strife though !!

[phoenixdoglover]

I wonder whether there is enough manpower in the form of auditors to make this rule standing.

Good strife though !!

Considering that the focus is on compliance by private sector companies who have contracts with the government, I doubt there are enough auditors.

I don't know how many government entities there are in Thailand that let out contracts. Let's say "thousands".

There must be 10x as many companies getting government work.

[SOTIRIOS]

.........t.......

[springheeled jack]

better late than never

there is a lot of rich people out there corrupt people making money mainly from government contracts we call them the creamers because they took the cream and left the dross I think now the government are beginning to take stock things will get better.

[jerojero]

Great idea. Who will ensure enforcement or fair application of enforcement?

[Jonmarleesco]

'The blacklisting is one of the anti-corruption measures that the NACC is keen to enforce​ ...' Wouldn't it be more relevant to demand the revenue and expenditure figures of government officials? Ah, no, of course not. That would open one huge can of worms.

[Thai at Heart]

If they do this, this will blow it all wide open. I have a mate who supplies about 100mn baht worth of extremely over priced personal protective equipment and hand sanitiser just incase another bird flu hits. He makes 10mn, and his buyers split 10mn......