The Opposition People's Party (PP) is accusing the Social Security Office (SSO) of misconduct over 7 billion baht spent in 2022 and 2023 to purchase a Bangkok building with a claimed appraisal price of just 3 billion baht.
Rukchanok Srinork, a PP MP for Bangkok, who has been calling for reform and a probe into the SSO's budget, alleged that the purchase was linked to the former Palang Pracharath Party (PPRP) labour minister, although she did not name him directly. Ms Rukchanok also raised the question of whether the building's owner is related to the former minister.
SKYY9 Centre, the building in question, in the Rama 9 area of Bangkok, was abandoned during the 1997 "Tom Yam Kung" Asian financial crisis, said the MP.
A company then purchased and renovated the building around the time the Social Security Fund (SSF) was amending its regulations, a move which may have led to parts of the fund being diverted into purchasing this building later, said Ms Rukchanok.
The MP also alleged there were other irregularities and losses incurred by the building's management.
The building's net income was 40 million baht last year, even lower than the management costs of 50 million baht. Occupancy was also around 20%-30%, compared to the 60% predicted within two years of the purchase date, a figure Ms Rukchanok said might have been optimistic.
"Even if the building is fully rented, it would still take around 30 years to break even, which is probably longer than the SSF's own lifespan, she said, referring to forecasts that the SSF will run out of cash within the next 25 years.
"There are questions such as why the SSO decided to use 7 billion baht to invest in a single building instead of diversifying in other assets, especially when it has never had experience managing buildings or assets like this. And why did it decide to invest the insured's money in a building with only 1% occupancy at the time? This is all very suspicious," said Ms Rukchanok.
Another PP MP, Sahassawat Kumkong, said the purchase of this building was made through a trust, where about 70% of the trust was spent in purchasing this one building.
The labour minister at the time was also found to have transferred a close aide to a committee directly in charge of the investment, including the purchase of the building.
"SSO investment projects have always been kept hidden from the public eye," said Mr Sahassawat.