Cases of graft in the army's housing loan programme have been perpetrated by individuals, not the institution itself, the army chief said on Thursday.
Gen Narongpan Jitkaewtae said the army has completed its investigation into the alleged swindling which took place "many years ago" and it's now finalising the evidence for the Defence Ministry.
"What we are able to establish is that the wrongdoing was engineered by individuals, not the force or a particular army unit," Gen Narongpan said.
The scandal was brought to public attention by two businesswomen whose companies were contracted to build houses for army officers.
The officers had borrowed money from the army's welfare department to pay for the construction.
However, at least one senior officer in the department took a cut from the loans disbursed, claiming to collect so-called "welfare" and "loose change" fees which turned out to be non-existent in the army's regulations.
The senior officer is believed to be part of a gang made up of at least 20 military officers, according to Paisarn Ruangrit, the lawyer who represented the two women.
The gang was thought to have demanded fees worth at least 5% of the loan in exchange for approving the money.
The businesswomen were mistakenly faulted by the damaged parties for charging the fees.
The women later learned about the swindling and were then allegedly threatened over it by members of the gang. The women have since sought protection from the Justice Ministry.
Mr Paisarn estimated the damage from the alleged graft at 30-40 million baht.
On Thursday, Gen Narongpan said the damaged parties have filed their complaints with authorities, and the army stood ready to supply them with the necessary information in seeking to prosecute the officers in the gang.
The army has taken or is taking legal and disciplinary action against the officers connected to the swindling, he said.
However, the army chief suggested the lawyer needs to provide evidence to back up his claim that some of the swindling officers have been promoted to higher ranks and positions.
After the mass shooting in Nakhon Ratchasima in 2020 when soldier Jakrapanth Thomma, a sergeant major first class, killed 29 people and wounded over 50, the housing loan project was ordered scrapped by then-army chief Gen Apirat Kongsompong.
It was reported that Jakrapanth had been under heavy stress over a housing loan that he took out under the army's welfare scheme prior to the shooting rampage.
As per the order, the housing loan was subsequently stopped, according to Gen Narongpan, who confirmed several officers were then punished for their roles in collecting illegal loan fees.
Also on Thursday, Linthiporn Warinwatchararoj, deputy spokeswoman of the main opposition Pheu Thai Party, said Prime Minister Prayut Chan-o-cha, in his capacity as defence minister, should accept responsibility for the army's illegal loan fee scandal as well.