The main opposition Move Forward Party (MFP) accused the government of attempting to embezzle budget funds for the navy's procurement of a new frigate in parliament.
The issue, known as the "change money" scandal, was raised by Wiroj Lakkhanaadisorn, an MFP list MP, on Thursday, the last day of the two-day general debate in which no censure vote was cast. The claims sparked a heated exchange between the government and the opposition.
The "change money" scandal refers to when a buyer purchases a product at a pre-arranged, inflated price, and the seller gives the amount of money, which is the difference between the actual price and the inflated one, back to the buyer. In this case, it is seen as an act of alleged embezzlement of state funds.
Mr Wiroj claimed a navy informant told him that someone from the government tried to contact the navy to ask for the "change money" from the navy's procurement of the frigate, but the navy refused.
Wiroj Lakkhanaadisorn, a Move Forward Party list MP, accuses the government of attempting to embezzle budget funds for the navy's procurement of a new frigate on Thursday in parliament. (Photo: Chanat Katanyu)
As a result, the source claimed a special House committee tasked with vetting the 2024 budget rejected the navy's request for a budget to buy the new frigate in the 2024 fiscal year. The committee also dismissed the navy's appeal against its decision to reject its request for the budget.
Mr Wiroj said the new frigate, which would be assembled locally under the procurement plan, is crucial to the navy's core mission as HTMS Rattanakosin is scheduled for decommissioning in two years.
In light of this, the country will have only three frigates in service, which may not be enough for the navy's maritime defence missions, he said.
Mr Wiroj also said the new frigate would be the first of its kind to be assembled in Thailand.
He said the assembly process will generate employment and income for local workers, transfer technical know-how in shipbuilding, and use locally made construction materials.
"The rejection of the budget request means a lost opportunity, and the navy may have to wait until 2026 before it can request a budget again," he said.
Defence Minister Sutin Klungsang earlier said the navy's plan to buy a new frigate will remain unchanged despite the House committee vetting the 2024 budget bill rejecting its request for a budget to fund the purchase.
Mr Sutin insisted that the frigate purchase project will still go according to plan, but it may happen in other fiscal years, not the current 2024 fiscal year.
The navy had earlier asked for 17 billion baht from the 2024 budget to fund its frigate procurement plan, which it looked to use over the next five years. Approximately 1.7 billion baht would be spent in the first year.
The new frigate would be deployed along the Andaman coast, a source said.
A number of shipyards, including several from the Netherlands, Germany, Spain, Italy, Turkey, and South Korea, as well as local companies, have expressed interest in building a frigate for the navy.
Responding to Mr Wiroj's claims about the "change money" scandal, Prime Minister Srettha Thavisin said during the general debate that Mr Wiroj should produce evidence to back up his claims.
"In principle, the procurement of a new frigate that will be locally assembled is a good idea. But several issues, such as international relations, must also be taken into account. Talks are being held to ensure the navy gets the best deal," he said.
"As I have been listening to you for 40 minutes and I am very surprised [about the MFP's backing of the frigate purchase project]. You previously suggested the navy's warships should be replaced by fishing trawlers. But I am baffled when you are supporting the purchase of the new frigate."
Mr Sutin also said during the general debate that the MFP opposes the military procurement projects every year but this time, the government was surprised as the MFP has backed the purchase of the frigate.