Finance Minister Apisak Tantivorawong has urged state enterprises to shun using profits derived from the domestic market to fund overseas investments and to invest them locally instead.
Unlike the private sector, state enterprises should earmark profits earned from the domestic market for local investment to strengthen the country, Mr Apisak said at yesterday’s SOE CEO Forum.
Some state enterprises are using the profits contributed by the local market to invest in foreign equities, he said without naming any names.
If state enterprises can raise their efficiency, it will be a key factor in levelling the playing field with the private sector, Mr Apisak said.
Profit maximisation is not state enterprises’ mission, which is giving back to society and the people, he said, adding that they should still make enough profit to fund business operations.
He offered specialised financial institutions as an example. They are tasked with helping low-income earners access financial sources.
“State enterprises have their own mission and they are a part of the state,” Mr Apisak said. “Efficiency, return to society and taking care of people are important things to which they need to adhere. For the financial issue, what can they do to assist low-income earners in accessing funding sources? For the housing issue, how can they help low-income earners own their own home? For transport, how can they cut transport costs? All of our investment is to facilitate people’s transport.”
The finance minister said he told the Comptroller-General’s Department to consider requiring losing bidders who appeal auction results to be charged fees as a way to prevent unjustified petitions that lead to delays in budget disbursement.
Mr Apisak said recently that some losing bidders had exploited the Government Procurement and Supplies Management Act by filing unjustified appeals, causing the postponement of some state investment projects.
The law, effective since August 2017, stipulates that losing bidders can file an appeal within seven days after the auction is completed. In the event that there is an appeal, the issue will be considered within 45 days with two extension periods: seven days and an additional five days.
The act, which replaced the procurement rules of the Office of the Prime Minister Act of 1978, centres on preventing corruption and anti-competitive behaviour, with an increased level of transparency and monitoring.
More than 90% of government purchases and construction projects are covered by the act, which imposes criminal penalties for state officials.
Dozens of losing bidders making appeals have been partly to blame for the budget disbursement shortfall in fiscal 2018.