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ACT Exposes Massive Government Procurement Fraud Risk: 97% Use of Direct Award Method, Proposes 8 Measures to Seal Budget Leaks for 2027

Theissue06 Jul 2026 15:40 GMT+7

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ACT Exposes Massive Government Procurement Fraud Risk: 97% Use of Direct Award Method, Proposes 8 Measures to Seal Budget Leaks for 2027

The Anti-Corruption Organization (ACT) is monitoring the 2027 budget of 3.788 trillion baht, revealing worrying government procurement figures that show the use of the “direct award” method soaring to 97.8%, creating corruption loopholes. ACT is rushing to propose 8 measures to prevent kickbacks before the country incurs financial losses due to mismanagement.


As the House of Representatives considers the massive 2027 budget bill of over 3.788 trillion baht, the Anti-Corruption Organization (Thailand) or ACT has stepped in to prevent damage by disclosing shocking data: currently, Thailand’s government procurement uses the “direct award” method at a staggering 97.8% (accounting for more than 40% of the total budget), a major risk factor enabling corruption.


Manah Nimitmongkol, chairman of the Anti-Corruption Organization (Thailand), revealed that although e-bidding systems exist, those in power often cite them as “anti-corruption talismans” to mask issues. Many state projects should not occur but continue due to hidden agendas intent on wasting budgets. The result is government buildings nationwide left abandoned, unfinished, or inefficiently used.


Exposing various fraud tactics: collusion, rigged specifications, deliberate delays


Manah elaborated on the many corrupt tactics by officials and politicians, occurring at nearly every stage, including:

  • Before bidding: Splitting projects into smaller parts, rigging specifications, intentionally creating tight deadlines to force use of “special procurement” methods (for example, buying 90,000 marigold pots but delaying so procurement must be direct awarded).

  • During bidding: Bid collusion, excluding competitors, signing contracts disadvantaging the state.

  • During inspection: Harassing contractors who refuse to pay bribes by delaying approvals, ordering minor rework, or blocking material purchases to pressure payment of “under-the-table” money or payoffs to local influential figures.


Revealing 8 proposals to plug government procurement leaks

Based on lessons learned from various cases, ACT has proposed 8 measures to eliminate corruption as follows:


  1. Open up competition: Emphasize transparency and measurable efficiency.

  2. Engage the public: Build strong preventive mechanisms.

  3. Cut excessive profits: Break the under-the-table money cycle to reduce state losses.

  4. Use technology to catch fraud: Employ reliable systems such as the ACTAi website.

  5. Clean contractor registries: Review and reopen competition spaces.

  6. In-depth private sector screening (due diligence): Thoroughly assess contractor status.

  7. Blacklisting (watch list): Create clear surveillance lists of contractors who abandon projects.

  8. Establish dual policies: Both buyers (government) and sellers (private sector) must have anti-corruption policies.


“Those in power often deny corruption claims by saying e-bidding prevents fraud. E-bidding is good, but it is misused as a facade because direct award procurement is very common. Many state projects should not have started but continue due to hidden agendas focused on spending money, sometimes carelessly or with poor judgment. Evidence of losses includes many government buildings nationwide left unused, inefficient, or abandoned. Government procurement must be overhauled from project planning and budgeting approval through all stages per the Procurement Act,”the ACT chairman said.


Finally, ACT urges the government to promptly organize a “public forum” to hear the voices of citizens and stakeholders to overhaul the entire procurement system before the 2027 budget takes effect on 1 October, restoring public confidence in Thai society.