Procurement Risk:
Critical
Score:
16/100
Government Policy
Q57
38/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
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This indicator is not assigned a score in the GDI. In 2017, the Thai government passed a new law entitled ‘Public Procurement and Supplies…
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According to the Public Procurement and Supplies Administration Act 2017, Section 6, all state agencies, including the Ministry of Defence, must comply with the…
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According to the Public Procurement and Supplies Administration Act 2017, Section 6, all state agencies, including the Ministry of Defence, must comply with the…
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Q58
42/100
Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
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In the Public Procurement and Supplies Administration Act 2017, Section 8, it is noted in a broad manner that procurement and supplies administration by…
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Even though there is no clear defence procurement cycle defined in the Procurement Act, Section 12 requires state agencies to systematically put together records…
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There is no clear defence procurement cycle defined in the Procurement Act. Some provisions in Chapter 9 of the Act provide a framework for…
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Q59
8/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
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The Public Procurement and Supplies Administration Act 2017, Section 4, details a number of formalised procurement oversight mechanisms, such as the Public Procurement and…
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According to Kitivichaya Watcharothai (2018), public procurement corruption arises throughout the operation of the Thai public procurement process due to gaps in the Government…
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It should be noted that the Public Procurement and Supplies Administration Act 2017 focusses on preventing corruption and anti-competitive behaviour with an enhanced level…
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On February 27, 2017, the Defence Council approved a 10-year military development programme entitled ‘Modernisation Plan: Vision 2026’, which was drawn up in accordance…
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According to Section 30 of the Budget Procedures Act B.E. 2502 (1959), when a fiscal year ends, the Minister shall issue a report on…
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According to the Public Procurement and Supplies Administration Act 2017, the Ministry of Defence is not required to disclose information about its purchases to…
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Much like the result from the GDI Index 2015, accessible, comprehensive data on actual defence purchases could not be found on the basis of…
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Capability Gap and Requirements Definition
Q62
0/100
What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
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According to the Public Procurement and Supplies Administration Act 2017, Section 18, all suppliers and sub-contractors shall agree to refrain from corruption in procurement…
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According to the Public Procurement and Supplies Administration Act 2017, Section 18, an Integrity Pact must always be made in the form of a…
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Q63
8/100
Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?
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Thailand has been pursuing a military modernisation programme since the coup d’état in 2014 [1]. This also affects the procurement planning of the defence…
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Since the military junta came to power in May 2014, led by Prayut Chan-o-cha, who now holds the roles of both Prime Minister and…
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To support modernisation, the Vision 2026 plan outlined an objective to allocate up to 2% of Gross Domestic Product (GDP) to defence in 2018.…
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Tender Solicitation, Assessment and Contract Award
Q64
0/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
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According to the Public Procurement and Supplies Administration Act 2017, Section 8, procurement and supplies administration must be carried out openly and provide opportunities…
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In Thailand, there are specialised audit or anti-corruption bodies overseeing the competition procedures in the public procurement system. While the Materials Inspection and Acceptance…
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Q65
0/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
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There are no regulations or codes of conduct on conflict of interest prevention that are specifically designed for tender officials. The procurement officers in…
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According to the Public Procurement and Supplies Administration Act 2017, Section 8, information on procurement and supplies administration must be systematically retained for the…
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Defence procurement is generally subject to internal audit, with additional reports submitted to the State Audit Council; therefore, the tendering system is partially transparent…
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According to the Regulations of the Ministry of Defence on Internal Audit 2010, defence procurement (including the tendering process) may be subject mainly to…
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Q66
50/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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In Thailand, collusion is an offence under the Act Governing Offences Concerning the Submission of Bids to State Agencies B.E. 2542 (1999), commonly known…
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Government authorities have been focussing more on collusion in competitive bidding for government contracts due to the implementation of the new law, the Act…
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According to the GAN Integrity Report 2017, there is a high risk of corruption in Thailand’s public procurement sector. Companies report that the diversion of…
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According to the Public Procurement and Supplies Administration Act B.E. 2560 (2017), Section 49, the Comptroller-General’s Department has the duty to determine and put…
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Contract Delivery and In-Service Support
Q67
38/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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According to Section 106 of the Public Procurement and Supplies Administration Act 2017, in order to ensure the efficiency of the consideration and selection…
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In accordance with the Public Procurement and Supplies Administration Act 2017, Section 8, information on procurement and supplies administration must be systematically retained for…
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According to the Guideline to Public Procurement and Supplies Management of the Ministry of Defence 2017, procurement officers are responsible for reviewing the bidders’…
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Ideally, according to the Public Procurement and Supplies Administration Act 2017, the failure of a government agency to use a standard form or comply…
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Q68
33/100
Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
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According to the Public Procurement and Supplies Administration Act B.E. 2560 (2017), Section 34(6), the Focal Prices Committee shall consider complaints in cases where…
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According to the Public Procurement and Supplies Administration Act B.E. 2560 (2017), complaints by companies or suppliers must be made in the form of…
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Looking at the Public Procurement and Supplies Administration Act B.E. 2560 (2017), it is evident that Thailand has formal complaints mechanisms in place for…
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According to the Public Procurement and Supplies Administration Act B.E. 2560 (2017), Section 120, any state official found to be involved in bribery or…
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Since the military coup in 2014, there have been very few prosecutions in cases involving military officials and big corporations, regardless of the existence…
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Under the NCPO regime and the pro-junta government, corruption in the granting of concessions is fairly common, especially among private companies who supply products…
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Offset Contracts
Q70
0/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
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The Public Procurement and Supplies Administration Act B.E. 2560 (2017) does not contain any provisions focussing on offset contracts [1]. Kanchitpon Soonthonchaiya suggested that…
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As mentioned above, there are no laws focussing on offset contracts, including the Public Procurement and Supplies Administration Act B.E. 2560 (2017) [1]. Therefore,…
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In Thailand, there are not any formal policies administrating offset contracts. Apparently, the Thai government has planned to advance its defence industry to reduce…
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According to the Public Procurement and Supplies Administration Act 2017, Section 7, details about military procurement related to national security are exempted from disclosure,…
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According to the Public Procurement and Supplies Administration Act 2017, Section 7, any military procurement related to national security is subject solely to internal…
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Since details about offset contracts for military procurement related to national security are generally exempted from disclosure, it is impossible to know whether breaches…
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There is still no official offset policy in Thailand to this day. As mentioned above, there are no laws focussing on offset contracts, including…
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Agents / Brokers
Q73
0/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
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It is widely known that the key to successfully bidding on Thai government contracts and supply tenders is to have a reputable local representative…
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Thailand has no restrictions on the use of agents and intermediaries, as outlined in 73A. As such this indicator is marked ‘Not Applicable’.
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Financing Package
Q74
0/100
Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
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According to the Public Procurement and Supplies Administration Act B.E. 2560 (2017), Section 7, even though financing packages for public procurement must be submitted…
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Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
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This indicator is not assigned a score in the GDI. Thailand’s decisions to procure military equipment from China have been cited as evidence of…
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This indicator is not assigned a score in the GDI. In 2017, Deputy Prime Minister and Defence Minister General (retired) Prawit Wongsuwan stated, by…
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This indicator is not assigned a score in the GDI. A major threat in the eyes of Bangkok’s elites is actually the domestic demand…
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