Thai Treasury and Interior Ministry to Review Contracts After Audit Office Collapse

Joint talks planned to tighten procurement rules and address liability in construction projects.

 

The Thai Treasury is set to hold discussions with the Interior Ministry to jointly revise government procurement contracts and implement stricter safeguards against serious accidents, following the recent collapse of the new State Audit Office (SAO) building. 

 

The talks will also address potential compensation measures.

 

Deputy Finance Minister Julapun Amornvivat explained that while the blacklisting of the contractor responsible for the SAO building project is not within the direct remit of the Comptroller General's Department, the procuring agency will need to submit comprehensive details of the incident for the department's final consideration.

 

Julapun emphasised that any blacklisting of contractors must adhere to legal procedures.

 

He acknowledged the desire of Prime Minister Srettha Thavisin and the Finance Ministry to implement robust measures for blacklisting companies with a history of problematic government contracts.

  

However, he stressed the necessity of clear and demonstrable evidence of wrongdoing before such action can be taken.

 


"In the case of the new SAO building collapse, it must first be established where the fault lies," Julapun stated. "This could involve issues with the building's design, the design auditors, the construction workers, site supervision, or even the quality of the steel supplied. We need to meticulously investigate every aspect to pinpoint the root cause. Therefore, we cannot simply jump to the conclusion that the contractor is immediately at fault."


 

Julapun noted that the Comptroller General's Department already has policies in place for blacklisting and maintaining performance records for government contractors.

 

Detailed proposals outlining penalties, including demotion in bidding eligibility and blacklisting, have been submitted to the Secretary-General of the Cabinet and are awaiting their turn on the Cabinet's agenda.

 

  


"The blacklisting measures prepared by the Comptroller General's Department were initially conceived following the serious accidents on Rama II Road," Julapun explained. "The principle is that less severe errors or accidents would result in a contractor's demotion in the government procurement bidding process. However, severe incidents causing significant damage would lead to blacklisting. The SAO building collapse is undoubtedly a major incident with substantial damage, so a review of these measures to ensure greater comprehensiveness will be necessary."


 

Julapun further pointed out that current procurement contracts typically focus on the completion of work according to the agreed terms.

 

Addressing accidents falls under the remit of the Government Procurement and Supplies Management Act, which can lack clarity in such situations.

 

Consequently, future procurement contracts will need to be amended to explicitly cover instances of negligence leading to damage and loss of life.

 

Julapun concluded by stating that the Ministry of Finance and the Interior Ministry will hold further discussions on government procurement practices, given the Interior Ministry's oversight of many such projects. These discussions will use the collapse of the new SAO building as a key example in developing strategies for prevention, remediation, and future compensation.

(2025/04/07-00:00)