State Audit Office (SAO) spokesman Sutthipong Boonnithi revealed on Monday that financial losses due to the inefficient management of various construction contracts during the 2023 fiscal year exceeded a staggering 30 billion baht. The annual audit conducted by the SAO meticulously examined over 14,148 projects and contracts administered by 9,426 public agencies nationwide, uncovering noteworthy budgetary mismanagement in 1,795 of these agencies, amounting to 19.04%.
The SAO identified at least 30.83 billion baht in irregular expenditures. Mr. Sutthipong articulated that the SAO had provided conditional recommendations for the enhancement of 629 out of 8,575 financial reports they audited for accuracy. Many of these reports were significant expenditures characterized by incomplete bookkeeping or erroneous records lacking sufficient clarifications, often involving cash, land, and real estate properties.
Furthermore, the audit highlighted that 2,638 out of 5,318 contracts, which represents 49.61% of the total examined, failed to comply with legal or contractual obligations, resulting in damages amounting to 666.47 million baht. Mr. Sutthipong detailed that these anomalies encompassed violations such as overestimations of middle market prices, ambiguous contract statements, mishandling of tax collections, and outright contract breaches.
The SAO’s scrutiny of government agencies, including central and provincial offices, revealed that 151 out of 157 cases, or 96.18%, illustrated inefficiencies in the utilization of state funds. These inefficiencies ranged from inadequately prepared project proposals to delayed implementation timelines, culminating in a colossal financial detriment of at least 30.16 billion baht.
Among the highlighted concerns was the construction contract for the Rama II elevated road project. Mr. Sutthipong expressed his skepticism regarding the project’s capacity to deliver satisfactory results. To mitigate further inefficiencies, he urged all relevant sectors to collaborate and expedite the construction timeline from eight months down to five months, thereby enhancing budget management efficacy.
Notoriously infamous for its delayed progress, the 10.5-billion-baht project is currently projected to reach completion by November. The collaborative push for a shortened timeframe could be the key to curbing future financial losses and improving project management standards across the board.
30 billion baht lost due to poor management is unacceptable! Heads should roll for this.
Agreed! It’s our tax money they are playing with. There should be accountability!
While heads may not literally roll, we definitely need stricter oversight and reforms.
Absolutely, Luisa. But the problem is systemic. We need a top-down overhaul for real change.
Instead of just blaming, let’s focus on constructive changes. It’s clear our procurement processes need tightening.
True, but systemic corruption is the elephant in the room nobody wants to address.
This kind of waste is why people lose faith in government projects. Shocking!
Every year there seems to be a new scandal. It’s demoralizing.
Why can’t they get it right? At least someone should be prosecuted for this neglect.
Prosecution might be extreme unless there is proof of intentional fraud. Mismanagement is often due to incompetence.
True, but sometimes incompetence itself is criminal, especially at this scale.
This exposes how little oversight there really is in public spending. A shame.
Imagine the positive impact 30 billion baht could have had if properly used. An education or healthcare boost!
The inefficiency in public fund usage is a severe issue. Transparency should be a priority.
Living near the Rama II project, I can tell you it’s a nightmare! They have missed so many deadlines.
Sometimes project delays are inevitable, but 10.5 billion baht deserves better results.
True, but when nearly 50% of the contracts are problematic, it indicates a deeper issue.
More private sector involvement in public projects might be the solution. They generally have stricter controls.
It’s tragic. My dad works in construction, and he says many good companies are getting sidelined by corruption.
Cash, land, real estate… The areas of mismanagement make it sound like they’re trying to lose money on purpose!
It does sound like an absurd amount of incompetence. A comprehensive audit is certainly needed.
Yes, but who audits the auditors? We need an external body perhaps.
How come no one’s talking about the environmental impact these mismanaged projects could have?
Good point, Chang. Environmental oversight is often the first thing to go in these scenarios.
Unfortunately, it seems money talks louder than sustainability in these cases.
Exactly, and by the time the environmental impact is clear, it’s often too late to mitigate.
This only confirms my belief that the government shouldn’t handle large-scale infrastructure projects.
Corruption and incompetence seem to be the recurring themes. When will there be a real change?
It all boils down to systemic failures. Whether the sector is public or private, stringent checks are necessary.
True, Jeanine. Involving multiple layers of accountability might help.
Quite disheartening that such a significant financial loss could have been averted with better management.
Mismanagement of this scale is no accident. Someone, somewhere made a lot of money from these ‘mistakes’.
That’s the real scandal here. Intentional or not, such mismanagement always has its winners and losers.
Reading this makes me lose faith in our public institutions. Such waste!
Reforming these institutions is a tough but necessary task. A citizen-led watchdog might help.
This is more than financial loss; it’s a betrayal of the public trust.