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Finance Ministry’s Bold Move: Blacklisting Contractors in Procurement Overhaul

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The Finance Ministry is gearing up to roll out some serious changes in its playbook as it plans to blacklist contractors who dare to defy government procurement laws. In what seems like a pivotal move, Deputy Finance Minister Julapun Amornvivat emphasized that blacklisting isn’t just where the buck stops. There’s also a potential downgrade in store for those whose misdemeanors aren’t quite blacklist-worthy but are unacceptable nonetheless.

To tighten their grip on this initiative, discussions are set to unfold with the Interior Ministry. The goal? To ensure that the blacklisting procedures for contractors with government projects are as strict and foolproof as possible. Whispers from inside the Finance Ministry, which made their way to the Bangkok Post, hinted that these hard-hitting regulations are set to be tabled before the Cabinet for deliberation tomorrow, April 8. Initially, the focus will be on construction projects under the Department of Highways and the Department of Rural Roads, steering clear of building construction projects for now.

Minister Julapun dropped a tidbit, revealing that there’s already a draft ministerial regulation in the wings. This document is all about setting clear criteria for entrepreneurs eager to hop on the procurement bandwagon, thereby boosting safety protocols and keeping an eagle eye on the contractors’ operational timelines. If the Cabinet gives the green light, the Comptroller-General’s Department will be tasked with concocting a regulation concerning public procurement and supplies administration, zeroing in on evaluating contractor performance.

A contractor report card system is on the cards, designed to hold subpar contractors’ feet to the fire, possibly leading to them being downgraded or having their names scratched off the construction registry altogether, as per our inside source. Keep your ears to the ground because implementation is expected to kick off this month.

Flipping the pages to fiscal year 2024, the specific procurement method emerged as the apple of the government agencies’ eye, with a whopping 6.3 million projects under its belt, accounting for an impressive 97.6% of all procurement announcements. The electronic bidding method wasn’t exactly left behind, racking up the highest total procurement value with a staggering 785 billion baht, which makes up 50.3% of the total. Hot on its heels was the specific procurement method with 588 billion baht or 37.6%, and the selection method clocking in at 159 billion baht, representing 10.2% of the total procurement value.

As the numbers parade them, electronic market procurement did a little happy dance of its own, boasting the highest budget savings, hitting 19.3% of the allocated procurement budget, according to the Bangkok Post’s report.

In a tangential twist, the Finance Ministry has strenuously reassured everyone that despite the havoc wreaked by a recent earthquake, the economic fortress remains unscathed while the government stands poised to extend support to those who’ve borne the brunt of nature’s wrath.

Meanwhile, a quick scan of the latest from the bustling streets and news beats of Thailand reveals notable highlights: The silence in Pattaya over Songkran traffic prep has locals raising inquisitive eyebrows; a saga of a former guard turned gambler who’s now trading tales with the law; Bangkok’s road sweepers caught in a dizzying dustup; and a gripping search concludes with the K9 team wrapping up their mission at the site of a collapsed building.

In a rather sobering segue, there’s news of tragic road deaths and fatal accidents peppering the pages, underscoring the persistent challenges in maintaining road safety. Yet amidst the bustling hustle, business news makes a splash with hefty fines levied in excise crackdowns, and a smuggling racket getting stubbed out, leading to ripples across the economic landscape.

In the world of real estate and conflict resolution, Phuket weaves its own tales of land grab threats, while in Bangkok, families brace for compensation following a calamitous building collapse. Further afield, the ever-tenacious Thai police force claim victory with major drug busts, as the sun continues to rise on a nation bustling with life, promises, and challenges aplenty.

29 Comments

  1. Joe April 7, 2025

    This blacklisting move could bring much-needed accountability in these projects. Hope it actually works!

    • Sophia K. April 7, 2025

      But what if it deters contractors from bidding, fearing unfair blacklisting?

      • Joe April 7, 2025

        If they’re honest and follow the rules, there shouldn’t be a problem.

    • Riley23 April 7, 2025

      Agreed with Sophia K. Corruption can make even honest companies fearful.

  2. Larry D April 7, 2025

    This is just lipstick on a pig. Real reform needs deeper systemic changes!

    • Abe Wisdom April 7, 2025

      Lipstick on a pig? Try creating adequate infrastructure without all the red tape.

    • Larry D April 7, 2025

      Red tape is necessary if done right. Transparency over speed.

  3. BigMac April 7, 2025

    Old contractors will just find workarounds. Seen it happen too many times.

  4. Olivia H. April 7, 2025

    The contractor report card system seems promising for quality assurance.

    • Ben_Trust April 7, 2025

      Hope they don’t end up fudging numbers just to avoid reputation loss.

      • Olivia H. April 7, 2025

        True, data manipulation could be a huge loophole.

    • Gerry78 April 7, 2025

      What stops them from gaming the system, though?

  5. just4fun April 7, 2025

    Blacklist now, blacklist later! Keep those wrongdoers out!

  6. Economist22 April 7, 2025

    With high procurement values, contractor compliance is key to fiscal efficiency.

  7. Sandy_M April 7, 2025

    So much money, yet little oversight in government spending.

  8. Parker_Johnson April 7, 2025

    Won’t blacklisting lead to monopolies? Fewer contractors equals reduced competition.

    • Nina_L April 7, 2025

      It’s fine as long as it raises project quality. Better a few good ones than many corrupt ones.

    • Parker_Johnson April 7, 2025

      True Nina, but checks and balance are critical.

  9. Tina B April 7, 2025

    I’m curious how electronic bidding plays into all this regulatory buildup.

    • TechGee April 7, 2025

      E-bidding just means less room for bribes and biases if you ask me.

  10. Ravi Patel April 7, 2025

    Is this a distraction from the real economic issues? Earthquake aftermath could be a bigger concern.

    • Sara_Lau April 7, 2025

      Ravi, the contractors’ issue is different from natural disasters. Both need attention.

  11. vikin435 April 7, 2025

    Always hear about reforms, but they’re temporary at best. Same old story.

  12. Zenith_Top April 7, 2025

    Infrastructural management should be long-term, not ad hoc like this.

  13. Gabby_090 April 7, 2025

    Road deaths amidst economic talk seems like two parallel worlds.

  14. Max W. April 7, 2025

    Quality and safety in road-construction could change if contractor performance improves.

    • Jack Long April 7, 2025

      That’s conditional on honest enforcement, Max. Not some facade.

  15. Duke_A1 April 7, 2025

    Watch out, these new rules might just open more avenues for corruption under the guise of ‘regulation’.

  16. Bella_Lee April 7, 2025

    Sometimes you need to start small to address giant problems.

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