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Thai Finance Ministry promotes transparency in public procurements


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Finance Ministry promotes transparency in public procurements

BANGKOK, 3 June 2016 (NNT) -The Ministry of Finance is planning to introduce an integrity pact into the Procurement Act to prevent corruption in the government's hire and purchase agreements.


Finance Minister Apisak Tantivorawong said the ministry has considered proposing that the National Legislative Assembly include the integrity pact in the Public Procurement Act. The integrity pact allows independent organizations to probe the transparency of government hire and purchase contracts.

The minister had been speaking during a strategic seminar held at Century Park Hotel in Bangkok. He said the government’s determination to prevent corruption extends to its own procurement contracts, which are worth an average of 500 billion baht per year. To promote transparency, the Ministry of Finance will allow the Anti-Corruption Organization of Thailand to probe all public procurement.

Meanwhile, the e-bidding system, which was introduced four months ago, has saved the government 30 billion baht in auction events. The system is on track to save another 50 billion baht, due to procurement contracts that were successfully bid at lower prices. Mr. Apisak said the remaining procurement budget would be used in other areas of national development.

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This is a small piece of good news...if they follow through.

Public procurement activities must be transparent, Practically, that means all significant contracts must be procured through a publicly advertised bid process, and the award process must be open to public inspection.

This move by the Finance ministry is a step in the right direction; although it is not enough to authorize the anti-corruption commission to investigate procurements. The procurements should be a matter of "public record", open to the public and the news media as well.

The Thai culture, embodying the privilege (and corruption) of the upper classes and "authorities", will resist this greatly.

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"BANGKOK, 3 June 2016 (NNT) -The Ministry of Finance is planning to introduce an integrity pact into the Procurement Act to prevent corruption in the government's hire and purchase agreements."

Right. That'll work. Surprised it was so easy.

W

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Good news, I've spoken with regional business leaders who you would imagine to be bidding on some of the Thai mega infrastructure projects. The feedback is 'crooked and bent' so their respective businesses do not bother.

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Is a "pact" legally binding? Why not laws mandating transparency?

Quite - or they could do what Joko has introduced in Indonesia where all govt spending, down to pencil purchases, is available for anyone to see online.

I guess that would get in the way of the next park project or the upcoming submarines and tanks.

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gee.... how about asking brokers and banks for the actual names of beneficial security holders such as Thai stocks and bonds? instead of nominees 100% of the time.... simply by using an offshore broker. how about progress instead of silly stuff?

Edited by maewang99
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The US and UK have extensive legislation to prevent corruption in public sector procurement and both regularly make sure it's updated and strengthened when needed.

Yet, in both countries, you can regularly read of cases where fraud is exposed and people severely punished. You will never eradicate corruption completely and no matter how good your systems a determined fraudster will find ways to try and get undetected.

You need good checks and balances. real transparency, honest ethical people checking and professional procurement people. Thailand has an excellent relevant professional body that is a member of the appropriate international federation. Making sure professional procurement with the correct qualifications and skills were appointed rather than someones relation, family friend or crony would help.

Handing out real severe punishments for all who are found to have committed corruption, again not dependent on who their dad or brother is, is an essential deterrent.

Otherwise just more meaningless legislation.

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The US and UK have extensive legislation to prevent corruption in public sector procurement and both regularly make sure it's updated and strengthened when needed.

Yet, in both countries, you can regularly read of cases where fraud is exposed and people severely punished. You will never eradicate corruption completely and no matter how good your systems a determined fraudster will find ways to try and get undetected.

You need good checks and balances. real transparency, honest ethical people checking and professional procurement people. Thailand has an excellent relevant professional body that is a member of the appropriate international federation. Making sure professional procurement with the correct qualifications and skills were appointed rather than someones relation, family friend or crony would help.

Handing out real severe punishments for all who are found to have committed corruption, again not dependent on who their dad or brother is, is an essential deterrent.

Otherwise just more meaningless legislation.

Wow! I just had a really good dream...

Then some ratbag woke me up.

W

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