Bangkok Building Scandal: 7 Billion Baht Probe Launched
Allegations of overspending in the acquisition of the SKYY9 Centre on Rama IX Road have triggered an official inquiry into the Social Security Office (SSO), a key agency under Thailand’s Ministry of Labour. The controversy centers on the SSO’s ฿7 billion purchase price—significantly higher than the estimated appraisal price of ฿3 billion—sparking public concern and prompting swift government action.
Labour Minister Phiphat Ratchakitprakarn pledged full cooperation with the seven-member inquiry panel established by Prime Minister Paetongtarn Shinawatra and overseen by Interior Minister Anutin Charnvirakul. This panel, comprising a deputy permanent secretary for the Labour Ministry, the SSO’s current secretary-general, and the SSO’s deputy secretary-general, underscores the government’s commitment to transparency. Mr. Charnvirakul’s involvement stems from his role as deputy prime minister overseeing the Labour Ministry, further highlighting the seriousness of the allegations.
The investigation focuses on the actions of Boonsong Thapchaiyut, the current permanent secretary for labour, who was SSO secretary-general during the purchase. While Mr. Thapchaiyut acknowledged questions about the purchase’s legality, he declined further comment, fueling speculation.
Adding another layer to the unfolding narrative, Deputy Commerce Minister Suchart Chomklin vehemently denied accusations of involvement levied by People’s Party MP for Bangkok, Rukchanok Srinork, who publicly questioned the purchase price. Dismissing the claims as defamatory, Mr. Chomklin, who served as labour minister from 2022–2023, urged against using “dirty politics” to distort the truth. Ms. Srinork alleged the SSO acquired the building through a trust, with roughly 70% of its funds allocated to the acquisition. She further claimed the SSO purchased the building’s owning company, reportedly burdened with over ฿2 billion in debt. Fellow People’s Party MP Sahassawat Kumkong added that a close aide of the then-labour minister was transferred to a committee directly overseeing investments, including the building’s purchase, potentially raising concerns about influence and procedural irregularities.
The SSO, through its current secretary-general, Marasri Jairangsee, maintained that the purchase was conducted through a Private Equity Trust, a regulated investment vehicle under the Trust for Transactions in the Capital Market Act. Two independent, SEC-certified estimators valued the building at ฿7.3 billion (income approach) and ฿8 billion (cost approach), justifying the ฿6.9 billion investment.
The SKYY9 Centre’s history reflects the fluctuating fortunes of Thailand’s property market. Abandoned after the 1997 Asian financial crisis, the building changed ownership multiple times, including periods as I. C. E. Tower and Cas Centre following renovations. Its 2020 value, estimated at approximately ฿3.7 billion (including land), underscores the significant appreciation before the SSO’s acquisition. Of the SSO’s ฿9.4 billion private equity trust, ฿3 billion was earmarked for overseas investment, leaving ฿6.9 billion for the SKYY9 purchase from AGRE 101. Currently, 45% of the building’s space is leased, with 25% occupied and an anticipated 20% occupancy within the year, suggesting a potential long-term investment strategy. Rental rates of ฿600 per square meter make the building’s future profitability a key factor in assessing the investment’s wisdom.
The inquiry into the SKYY9 Centre acquisition raises critical questions about financial prudence and transparency within the SSO. The investigation will be closely scrutinized, holding significant implications for public trust in the agency and the government’s commitment to accountability.
