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2007 Assessment

Thailand: Integrity Indicators Scorecard

Thailand: Integrity Scorecard Report > Sub-Category: Procurement
Indicators		Score
48	Is the public procurement process effective?	45
49	Can citizens access the public procurement process?	75

Indicator and sub-Indicator Details

Is the public procurement process effective?

48a: In law, there are regulations addressing conflicts of interest for public procurement officials.

Score:

YES

Comments:

References: Organic Act on Counter Corruption of 1999, Section 100 gives power to the NCCC to determine which positions should avoid conflicts of interest. The NCCC has identified only two of these positions: the Prime Minister and cabinet members.

48b: In law, there is mandatory professional training for public procurement officials.

Score:

YES

Comments:

References: 1.Telephone interview with Sune Kasisareewong, academic official of Rice Department, Ministry of Agriculture and Cooperatives, Aug. 24, 2007

2. Chonticha Narabua, financial official, Chulalongkorn University, Aug. 5, 2007, Bangkok

48c: In practice, the conflicts of interest regulations for public procurement officials are enforced.

Score:

100

Comments:

References: 1. Telephone interview with an official in the Office of Administrative Court, Sept. 5, 2007 2. [ LINK ]; accessed Sept. 1, 2006

Peer Review Comments: No laws exist to prevent conflicts of interest, except in very special cases (i.e., the prime minster and cabinet).

48d: In law, there is a mechanism that monitors the assets, incomes and spending habits of public procurement officials.

Score:

YES

Comments:

References: Chonticha Narabua, financial official, Chulalongkorn University, Aug. 5, 2007, Bangkok

48e: In law, major procurements require competitive bidding.

Score:

YES

Comments:

References: The Office of Prime Minister's Regulation on Parceling of 1992 states that a project which costs more than 1 billion baht (US$33,000,000) has to submit to competitive bidding.

48f: In law, strict formal requirements limit the extent of sole sourcing.

Score:

YES

Comments: Sole sourcing is common practice and it is allowed by law. But, in law, there are strict formal requirements limiting the extent of sole sourcing. In practice, however, loopholes are used to support sole sourcing.

References: The Office of Prime Minister Regulation on Parceling of 1992, Nos. 51 and 97

48g: In law, unsuccessful bidders can instigate an official review of procurement decisions.

Score:

YES

Comments: Unsuccessful bidders can appeal to the Administrative Court for review.

References: Telephone interview with Naichon Tatong, attorney, Professional Alliance Legal Advisory Ltd., Aug. 27, 2007

48h: In law, unsuccessful bidders can challenge procurement decisions in a court of law.

Score:

YES

Comments:

References: Act on Establishment of Administrative Courts and Administrative Court Procedure, B.E. 2542 (1999), Section 5 states that:

All rules, regulations or notifications issued by the general assembly of the judges of the Supreme Administrative Court or by the J.C.A.C. or by the J.C.A.C. with the approval of the general assembly of the judges of the SupremeAdministrative Court shall come into force upon their publication in the Government Gazette and at [ LINK ]

48i: In law, companies guilty of major violations of procurement regulations (i.e. bribery) are prohibited from participating in future procurement bids.

Score:

YES

Comments: However, the parties can create "nominee companies" This refers to parties who use other persons to act as owners of companies, while, in actual fact, the companies belong to them.

References: The Office of Prime Minister Regulation on Parceling of 1992, No. 15 and 148 state that the guilty companies will be prohibited from participating in future procurement bids.

48j: In practice, companies guilty of major violations of procurement regulations (i.e. bribery) are prohibited from participating in future procurement bids.

Score:

100

Comments: However, the parties can create "nominee companies" This refers to parties who use other persons to act as owners of companies, while, in actual fact, the companies belong to them.

References: Telephone interview with Naichon Tatong, attorney, Professional Alliance Legal Advisory Ltd., Aug. 27, 2007

Peer Review Comments: Even for companies known to engage in bribery, few restrictions are enforced.

Can citizens access the public procurement process?

49a: In law, citizens can access public procurement regulations.

Score:

YES

Comments:

References: The Official Information Act of 1997 and the Office of Prime Minister Regulations on procurement of 1992. [ LINK ] [ LINK ]

49b: In law, the government is required to publicly announce the results of procurement decisions.

Score:

YES

Comments:

References: According to the Official Information Act of 1997.

49c: In practice, citizens can access public procurement regulations within a reasonable time period.

Score:

100

Comments: Citizens can buy copies of the regulations from an official. and access them at [ LINK ].

References: Telephone interview with Suporn Depan, analyst, real estate team, the Bank of Thailand, Sept. 4, 2007

49d: In practice, citizens can access public procurement regulations at a reasonable cost.

Score:

100

Comments: The regulations cost 1,000 baht (US$30)

References: Telephone interview with Suporn Depan, analyst, real estate team, the Bank of Thailand, Sept. 4, 2007

49e: In practice, major public procurements are effectively advertised.

Score:

100

Comments: Most procurement advertisements are not widely publicized.

References: Telephone interview with Suporn Depan, Analyst-real estate team, the Bank of Thailand, Sept. 4, 2007

49f: In practice, citizens can access the results of major public procurement bids.

Score:

100

Comments:

References: [ LINK ]

Telephone interview with Suporn Depan, analyst, real estate team, the Bank of Thailand, Sept. 4, 2007