ACT seeks procurement overhaul

The Anti-Corruption Organisation of Thailand (ACT) has proposed eight measures to overhaul the country’s public procurement system before spending begins under the 2027 fiscal year budget, warning that corruption can still occur despite improvements to electronic bidding.

The proposals were released on Monday as the House of Representatives considered the 2027 Budget Bill, which sets total expenditure at 3.788 trillion baht.

The ACT said its recommendations were prompted by findings that 97.8% of government procurement contracts were awarded through the specific-method procurement process, with those contracts accounting for 40.9% of the total procurement budget.

ACT chairman Mana Nimitmongkol said corruption could occur under any procurement method if key stages of the process remained vulnerable to manipulation.

While the e-bidding system has improved transparency, it should not be regarded as a safeguard against corruption, he said, arguing that projects can still be distorted during planning, terms of reference (TOR) preparation, budget approval and contract management.

The ACT said its recommendations were developed from lessons learned following the collapse of the State Audit Office building.

Its eight proposals call for greater competition in bidding, stronger preventive mechanisms and public participation, measures to eliminate excessive profits that could fund kickbacks, wider use of reliable technology such as the ACTAi platform, a review of contractor registration, stricter due diligence on private firms, watch lists for contractors that abandon projects and anti-corruption measures for both government agencies and contractors.

Mr Mana said many state projects should never have proceeded, but were pushed ahead because of vested interests.

He cited numerous government buildings and facilities that are unused, underutilised, abandoned or left unfinished as evidence of waste.

Before bidding, projects could be split into smaller contracts, TORs tailored to favour certain bidders or procurement deliberately delayed to justify the use of special methods.

During bidding, risks included collusion, discrimination against competitors and contracts that disadvantaged the state. During implementation, contractors could face pressure, delayed approvals or payment obstacles unless bribes were paid.

It also called for public consultations before the 2027 fiscal year begins on Oct 1.