Probe links 25 to gym gear scandal
PUBLISHED : 31 Jul 2024 at 05:00
At least 25 officials at the Bangkok Metropolitan Administration (BMA) are believed to have been involved in alleged bidding price collusion, which resulted in the BMA purchasing gym equipment for seven projects at vastly inflated prices totalling 77.22 million baht, City Hall said on Tuesday, citing results of a preliminary investigation.
One of those suspects has already resigned, while the rest will be transferred to inactive posts pending a further probe to determine whether their respective roles in the procurement projects amount to serious disciplinary misconduct, said Nuthapong Disayabutr, a deputy city clerk speaking in his capacity as director of the BMA’s anti-corruption centre.
He said the findings from the preliminary probe will also be forwarded to the National Anti-Corruption Commission (NACC) as further legal action is considered.
The NACC has the authority to investigate any suspected collusion in bidding prices, he said.
Mr Nuthapong said the BMA has so far found that an unjustifiable requirement was imposed on bidding contenders, making the bidding for these seven procurement projects unfair as it rendered many other contenders unqualified. The requirement was that all eligible contenders must have previously won at least 40 contracts worth at least the value of the BMA’s seven projects.
This was unnecessary and far more than the requirement recommended by the Ministry of Finance, he said.
The controversy first emerged when the Anti-Corruption Organization of Thailand (ACT) posted about the matter on its Facebook page, prompting the BMA to act.
Only two companies won the right to bid to supply the gym equipment in the seven projects, worth 17.91 million, 15.69 million, 12.11 million, 11.52 million, 11.01 million, 4.99 million and 4.99 million baht, respectively, according to the ACT.
The reserve prices were tactically set at a very high level which explained why the winning bids appeared lower than the median prices set, said the ACT. Certain items sold for even higher than a brand new car, the ACT said, adding that a treadmill was purchased for 759,000 baht, while a similar product sold elsewhere cost only between 100,000 and 300,000.
Responding to the probe’s findings, Bangkok governor Chadchart Sittipunt said corruption was a lamentable reality at the BMA that required ongoing suppression. He blamed some of the problems on loopholes in the state procurement law, which he said need fixing. Other state agencies have similar problems, he said.