The Social Security Fund (SSF) is looking to raise its off-market investments sharply from 10 billion baht to 130 billion baht, according to Rukchanok Srinork, a People's Party MP for Bangkok.
Ms Rukchanok said she was very concerned about such a significant investment following the controversial Social Security Office (SSO) purchase of the SKYY9 Centre, a building on Rama IX Road that has set off transparency alarms. The SSO manages the SSF.
She said the 6.9 billion baht spent on acquiring the building was part of the 9.4 billion baht previously approved for funding the SSO's earlier off-market investments. It was reported the remaining 3 billion baht was allocated for overseas investment.
The MP alleged the SSO may have overpaid for the building, given its appraisal price of only 3 billion baht. This has prompted Prime Minister Paetongtarn Shinawatra to order a fact-finding probe into the purchase.
Ms Rukchanok said she did not oppose off-market investments, but she wished the SSO would set an acceptable standard for managing investment risks, which can yield good returns.
"Without proper risk management criteria drawn up, there could be no guarantee that a project like the SKYY9 building purchase won't happen again," she said. The SSO secretary-general, Marasri Jairangsee, on Tuesday, said the SSO invested in buying the building via the Private Equity Trust, an investment vehicle under the Trust for Transactions in the Capital Market Act, regulated by the Securities and Exchange Commission. She said two independent estimators certified by the SEC estimated the price of the building.
She said the price was estimated at 7.3 billion baht based on the income approach formula, but if the cost approach is used, the building's value is estimated at 8 billion baht. However, she said the SSO invested 6.9 billion baht to buy the building.
Responding to the SSO secretary-general's statement, Ms Rukchanok said she would formally request a copy of documents explaining the building's appraisal price calculation from the SSO today. She also raised more questions yesterday about the SKYY9 building purchase, including why the SSO, with no expertise in property management, opted to buy a single, large building instead of investing in a property fund.