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OCS Suffers Hundreds of Millions in Losses Veera Criticizes Management Failure, Suggests Closing Remaining Provincial Commerce Companies

Politic03 Aug 2026 18:40 GMT+7

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OCS Suffers Hundreds of Millions in Losses Veera Criticizes Management Failure, Suggests Closing Remaining Provincial Commerce Companies

Budget Committee member Veera highlights that the Organization of Commodity Supplies (OCS) has suffered severe losses amounting to hundreds of millions due to internal management failures, and recommends dismantling the remaining provincial commerce companies. Meanwhile, the Permanent Secretary of Commerce explained that expenses exceeded revenues because the Budget Bureau cut salary budgets, necessitating the return of funds.


Starting at 1:00 p.m. on 3 August 2026, a meeting was held at the Parliament. The Special Committee on the 2027 Fiscal Year Budget Bill convened. The 19th session of the House of Representatives reviewed Section 19 concerning the Ministry of Commerce and its affiliated agencies, with committee members discussing and questioning unnecessary budget items.

At 1:45 p.m., Mr. Veera Theerapatranont as a committee member stated that the Ministry of Commerce requested a budget of 7,271 million baht, with an additional 78 million baht in off-budget funds for nine government agencies, one state enterprise, two revolving funds, and three public organizations. His first question was whether the Ministry currently holds approximately 600 million baht in off-budget funds. If so, he asked where these funds are stored or hidden, suggesting that more of these funds should be transferred to supplement the budget. He invited clarification if his information was incorrect, but if accurate, he urged that remaining unused off-budget funds be increasingly transferred to the official expenditure budget. He noted that changes could not be made this year, but recommended against continuing this practice next year.

Regarding the Office of the Permanent Secretary, since the Organization of Commodity Supplies (OCS) did not receive a budget, its status was unclear. Upon investigation, for the fiscal year ending 30 September 2025, the OCS reported a loss of 256 million baht, and in 2024 a loss of 469 million baht. The current status remains unknown because a director has not yet been appointed. This suggests a failure in internal management within the organization. The commodity supply system dates back to post-World War II. Currently, the government’s OCS does little beyond purchasing to intervene in agricultural markets, even storing products at rice mills. If funds are requested in the future, he will comment then. Since it has no budget, it lies beyond their oversight, as their duty covers only budgeted entities.

Mr. Veera continued that the Office of the Permanent Secretary is important, but regrettably, the competent Permanent Secretary will retire this year, freeing him to serve as chairman of private company boards or possibly remain as an ordinary board member. He has no remarks on the successor but noted that whoever replaces him will likely be among the committee members present, as there are about ten C10-level officials.

He listed known Permanent Secretaries of Commerce over the past 20 years, including Wijarn Niwatwong, Patchara Isarasena Na Ayudhya, Jare Jutharatkul, Sompol Kiattipiboon, Krirkrai Jirapet, and Karun Kittisathaporn. There have been ten in total, averaging two years each, indicating relatively brief tenures. If a Permanent Secretary is appointed this year, it should be someone with at least one to two years of remaining service to avoid lowering the average tenure. He added that those retiring in the next one to two years should not blame him as he is not involved in those decisions.

The Office of the Permanent Secretary requested 1,767 million baht in the budget. Other committee members will question the appropriateness of this expenditure. He focused on the fact that in 2024 and 2025, spending exceeded allocated funds, detailed in financial statement note 18. He expressed no concern if the spending was efficient, emphasizing the importance of controlling costs so that income exceeds expenses, a matter the relevant officials should address.

"What I truly want to see managed is a mere 1 million baht concerning provincial commerce companies, which are a legacy from the eras of Field Marshal Plaek Phibunsongkhram and Field Marshal Sarit Thanarat. Sixteen provinces still have these companies. They should be dissolved or liquidated; there is no reason to keep them cluttering the financial statement notes. I understand some companies have already been dissolved."

Regarding the Office of the Permanent Secretary, as I mentioned, my sole concern is the Organization of Commodity Supplies, which falls directly under your supervision. It is unclear who serves as chairman or manager. Frankly, the OCS no longer has a role. The next Permanent Secretary should plan a reverse or regression strategy to gradually reduce its role, as others can manage better. Historically, it has only incurred losses. If a state enterprise cannot find a permanent chief executive and relies on long-term acting managers, it signals that continuation is untenable, regardless of underlying issues."

Meanwhile, he noted that the Ministry of Commerce’s explanations differ from other ministries, as they first present to subcommittees before the full committee. This means they appear after budget cuts have been decided, limiting further action since decisions are finalized. Each member knows the allocated funds per project as agreed upon in subcommittees.

Mr. Veera also addressed the Budget Bureau and the meeting secretariat, stating that the proper sequence should begin in the main committee room before proceeding to subcommittee rooms to maintain procedure. Without attending the meetings, he would be uninformed. Although this room does not set budget cuts, oversight should ensure proper processes are followed.

Regarding the Department of Internal Trade and the Department of International Trade Promotion, which are unique due to their revolving funds that are not legal entities, the former manages a fund to assist farmers, and the latter has a fund to promote international trade. The first requested 700 million baht, the latter 600 million baht. He reserved comment until both departments provide their explanations before suggesting any changes or recommendations.

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At 3:06 p.m., Mr. Wutthikrai Leewiraphan, Permanent Secretary of Commerce, responded to Mr. Veera, confirming that the departments with revolving funds are the Department of International Trade Promotion and the Department of Internal Trade, which would provide detailed explanations. Regarding expenditures exceeding allocated budgets, he explained that the Budget Bureau cut salary budgets during approval, causing insufficient funds and requiring salary reimbursements. Fortunately, he had just read about this issue the previous night.

On the matter of provincial commerce companies that Mr. Veera suggested closing entirely, the Permanent Secretary reported that 16 such companies remain. The Ministry has instructed provinces with these companies to promptly update share prices to current values and proceed with open bidding sales as soon as possible. Regarding the Organization of Commodity Supplies, he said he would review the situation again.