Integrity pacts save B68bn over 4 years

Graft-tackling integrity pacts adopted as part of procurement bids helped the government pay nearly 70 billion baht below reference prices over the past four years, says the chief of the Comptroller-General’s Department.

Since integrity pacts were adopted in 2015, they have been incorporated in procurement bids for 96 government projects with a combined value of 1.4 trillion baht, said Suttirat Rattanachot, directorgeneral of the department. Some 200 billion baht worth of these projects have already been signed.

The government managed to save 68 billion baht, or 34% less than the reference prices of the signed projects, she said.

Integrity pacts are deals signed between state agencies and companies bidding for contracts that both parties declare they will abstain from collusion, bribery and other forms of corruption in the project. Signatories also consent to allowing a third party monitor the entire process, including bidding and all transactions, to ensure transparency.

The 96 projects that signed integrity pacts include the high-speed rail project linking U-tapao airport in Rayong, Suvarnabhumi in Samut Prakan and Don Mueang in Bangkok, worth 224 billion baht; the third stage expressway system’s N2 section, worth 175 billion; and a pharmaceutical manufacturing plant’s second phase, worth 5.6 billion, under the Government Pharmaceutical Organization.

In fiscal 2019, integrity pacts are planned for the procurement bids of 14 projects worth 100 billion baht. The projects include the Laem Chabang port’s third phase, worth 49 billion baht; the State Railway of Thailand’s procurement of 50 locomotives and maintenance, worth 13 billion; and the Khon Kaen airport development project, worth 2.4 billion.

The Government Procurement and Supplies Management Act of 2017 requires the formation of an anti-corruption committee tasked with selecting government project bids worth at least 500 million baht for integrity pacts, and private companies that intend to bid for government projects worth over 500 million must have graft protection measures in place.

Government projects that have broad public benefits and are vulnerable to corruption or draw public interest must incorporate integrity pacts in their procurement bids, even if projects are valued less than 500 million baht.

The current administration wants the country to score above 50 out of 100 points in 2021, up from 37 out of 100 in 2017 in the Corruption Perception Index. Thailand was 96th out of 178 nations.