Revenue Department takes issue with Finance over VAT-scam probe

While Finance permanent secretary Areepong Bhoocha-oom said on Thursday that initial findings by the ministry’s inspector-general had concluded that 18 senior officials might have been involved in a Bt4.3-billion value-added-tax refund scam, Revenue director-general Sathit Rangkhasiri rebutted that the department had found no irregularities in the officials’ work process.

Of the 18 suspects, four hold positions of senior director and specialists at the C-9 level, while the rest are officials at the operational level, Areepong said. The Revenue Department has been ordered to set up a disciplinary committee to probe the 14 operational officials further, while the ministry’s disciplinary committee will probe the four senior officials. 

Sathit said the ministry’s findings were different from the department’s, whose probe found that 10 officers were involved in the scam, which cost damages of Bt2.88 billion. 

“Looking at the work process, they have followed the procedure,” he said. “Whether they benefited financially from that, only the DSI [Department of Special Investigation] and NACC [National Anti-Corruption Commission] will know. 

“The ministry’s conclusion that they committed a mistake and are subject to a disciplinary probe is emotionally influenced. With conflicting data, the results can’t be the same.” 

Sathit said his department’s investigation involved the interrogation of the officers in question and the damage figure was based on the actual value of VAT receipts in question. Meanwhile, no officers were interrogated by the ministry, he said.

Per the ministry’s complaint that the department did not fully cooperate in the investigation, Sathit said the department submitted to the ministry details of 20 companies, against the request for 65 companies. He said the 45 other companies were targets of investigation by the department on other issues unrelated to the VAT scam. 

He also complained that the ministry pushed for huge amounts of documents in a short period, raising doubts on its motives. 

Sathit also noted that the VAT-refund process also involves the Customs Department, but the ministry’s investigation targets only the Revenue Department.

“The different results of the investigation are not a conflict between the ministry and the department. Rather, it’s a personal conflict that happens during the reshuffle season,” he said.