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December 11, 2024

Thailand Updates Anticorruption Standards for Public Procurement

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On October 16, 2024, Thailand’s Anti-Corruption Cooperation Committee (ACCC) issued a notification to enhance anticorruption standards in public procurement. The new notification (officially “Notification of the Anti-Corruption Cooperation Committee on the Procurement Budget and Minimum Standards of the Policy and Directions for Anticorruption in Relation to Procurement according to Section 19 of the Public Procurement and Supplies Administration Act B.E. 2560”) supersedes previous guidelines and imposes stricter compliance requirements on business entities involved in the government procurement processes. The updates not only align with the goals of Thailand’s Public Procurement and Supplies Administration Act B.E. 2560 (2017) but also reflect the government’s resolution to mitigate corruption, particularly in high-value public contracts.

The ACCC’s new notification introduces additional definitions, lowers budget thresholds for compliance, and strengthens business obligations.

Key Components

The new notification continues the previous guidelines’ requirement that businesses seeking to bid on government procurement projects meet the specified minimum standards—such as communicating and implementing anticorruption policies at all organizational levels, establishing a code of conduct, and providing related training programs to employees. The notification also introduces a number of changes, the most notable of which are detailed below.

  • “Entrepreneur” definition. The definition of this term is narrowed to entities involved in the public procurement bidding process. Previously, the definition broadly applied to all business entities engaged in selling goods or services.
  • Threshold for mandatory compliance. The project budget threshold that necessitates compliance with the minimum standards is  THB 300 million—a reduction from the previous threshold of THB 500 million.
  • Minimum standards to prevent unfair competition. The new notification introduces a specific definition for “disturbing fair competition,” establishing clear parameters around actions that disrupt competitive fairness within public procurement.
  • Continued compliance requirements. Businesses’ compliance with the minimum standards must now extend from the date of bid submission to the final payment installment.
  • Training and policy review. Businesses are now required to conduct anticorruption training for management and employees at least once a year. Additionally, the notification mandates a review of the company’s anticorruption standards every three years to ensure policies remain effective and up to date with current standards.
  • Certification. Businesses have the option of seeking certification for their anticorruption standards from an ACCC-approved organization. This includes obtaining recognition through certifications such as ISO 37001 for anti-bribery management systems, or certification from the Thai Private Sector Collective Action Against Corruption. Businesses holding such certifications can submit these credentials as part of their procurement bids.

Consequences of Noncompliance

Noncompliance with the new notification’s standards can have serious implications. Businesses failing to adhere to these regulations—particularly those with project budgets exceeding THB 300 million—may face disqualification from participating in future government procurement projects. Beyond financial repercussions, noncompliance can damage a company’s reputation and credibility.

For more information on the ACCC’s new notification, or on any aspect of complying with Thailand’s anticorruption, antibribery, and public procurement regulations, please contact John Frangos at [email protected], Chitchai Punsan at [email protected], Prakarn Sombunying at [email protected], or Jomphon Buathongtanakarn at [email protected].

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