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NACC Highlights Corruption Risks in Innovation List Procurement

26/09/2024

NACC Highlights Corruption Risks in Innovation List Procurement

 

The National Anti-Corruption Commission (NACC) has revealed vulnerabilities in the procurement of products and services listed under Thailand’s Innovation List. The commission is pushing for greater transparency to ensure that state-funded research is effectively utilized for commercial purposes, encouraging the efficient use of state assets for the maximum benefit of the public while closing loopholes to prevent corruption in the procurement process.

 

Niwatchai Kasemmongkol, NACC Secretary-General and Spokesperson, disclosed that the government has adopted a policy to support research and inventions beneficial to national development. As a result, the procurement of products and services on the Innovation List has been facilitated, allowing special procurement methods to be used, even for high-value projects, in accordance with regulations. However, this has opened loopholes that have led to corruption, with multiple complaints submitted to the NACC, such as those involving the "Kinaree Light Poles" project and the artificial mangrove project.

 

To ensure the Innovation List is used effectively and to reduce the risk of corruption, the NACC has proposed preventive measures addressing the vulnerabilities in the procurement of products and services. These include issues such as:

  1. Unclear Definition of Thai Innovation:

The NACC suggests establishing clear guidelines for granting special privileges to products and services based on the level of innovation. This could involve categorizing Thai innovation into two levels:

  • Level 1: Thai innovations that represent significant changes.
  • Level 2: Thai innovations with only minor modifications.

Clear criteria should be established for determining the level of innovation, considering factors such as the importance of intellectual property owned by Thai citizens, the existence of research conducted by Thai nationals, and whether rights to use or technology transfers have been granted. These criteria reflect that Thailand directly benefits from these innovations.

  1. Lack of Trust in Thai Innovation Products and Services by the Government:

It is recommended to review the criteria for registering products and services under Thailand’s Innovation List, with the aim of raising the standards for Thai innovation products and services to meet international recognition. This could involve establishing collaboration with relevant agencies, such as the Thai Industrial Standards Institute (TISI), to set industry standards.

  1. Mismatch Between the Qualifications of Sellers and Bidders for Thai Innovation Products and Services:

It is suggested that guidelines be established to ensure that the qualifications of suppliers and distributors are consistent with the requirements for bidding with government agencies before being listed on the Innovation List. For example, vendors should meet legal eligibility requirements, not be blacklisted for abandoning projects, have no conflicting interests, and be directly involved in the profession.

  1. Insufficient Transparency in the Pricing Structure of Thai Innovation Products and Services:

It is recommended to introduce additional privileges for Thai innovation products and services, such as requiring operators to disclose the cost structure of their products and services. The Budget Bureau would be responsible for maintaining the confidentiality of this information.

  1. Inconsistent Product Names and Codes Between the Thai Innovation List and Government Procurement Systems:

It is suggested that the database of the Innovation List be aligned with the names and codes of products and services in the government procurement system, managed by the Comptroller General’s Department. In the long term, the list could adopt the United Nations Standard Products and Services Code (UNSPSC) for better standardization.

  1. Inadequate Monitoring and Evaluation of Government Procurement of Innovation Products and Services:

It is recommended to establish clear guidelines for monitoring and evaluating the procurement of products and services from the Innovation List. This could be achieved by linking procurement data for innovative supplies to the e-Government Procurement (e-GP) system managed by the Comptroller General’s Department. The guidelines should also address how to proceed when government agencies have legitimate reasons for not being able to procure innovative supplies as required by law.

  1. Inconsistent Understanding of Government Procurement Procedures:

It is recommended to establish guidelines to ensure consistent understanding and application of procurement procedures for Thai innovation products and services among government agencies. This would help standardize practices across agencies.

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