33 state firms seek say in procurement
Thirty-three state enterprises have sought the Finance Ministry’s approval to issue their own regulations governing the procurement process, with the goal of providing more flexibility, says Finance Minister Apisak Tantivorawong.
Under the Government Procurement and Supplies Management Act (2017), all state agencies, local administrations, state enterprises, independent bodies and organisations under the constitution are permitted to issue their own regulations concerning the procurement process, but the regulations must be in accordance with state procurement management principles, meaning they must be worthwhile, transparent and with measurable efficacy. The new law went into effect on Aug 23. Mr Apisak said allowing state enterprises that compete with the private sector to set their own procurement regulations will help sharpen their competitive edge. But these will be looked at on a case-by-case basis, not for all procurement transactions.
The 33 state enterprises include the national oil and gas conglomerate PTT Plc, the national carrier Thai Airways International Plc, the Electricity Generating Authority of Thailand, the Metropolitan Electricity Authority, the Provincial Electricity Authority, TOT Plc, MCOT Plc, Government Savings Bank, GH Bank and Bank for Agriculture and Agricultural Cooperatives.
The new law also allows people to participate as observers every step of the way, from drafting the terms of reference to completing the procurement process, as well as setting penalties for authorities, officials or the accomplices who take bribes or fail to perform their duties in goodwill.
Offenders are subject to 1-10 years imprisonment and/or a fine of 20,000200,000 baht.
The State Enterprise Policy Office last week said that state enterprise investment soared by 20.5% year-on-year during the three months to June, playing a role in spurring the economy.
Some 45 state enterprises took out 171 billion baht from the investment budget, representing 81% of the annual budget, during the 10 months to July.
Enterprises whose investment budget disbursement met or exceeded the target include the MRTA at 102%, the National Housing Authority (100%), the Metropolitan Electricity Authority (102%), the Metropolitan Waterworks Authority (121%), Thailand Tobacco Monopoly (104%) and the Electricity Generating Authority of Thailand (103%).