Sub deal to be signed before completion of vetting process

THE ROYAL Thai Navy will sign by Sunday a contract with China’s state-run China Shipbuilding & Offshore International (CSOC) to buy a Bt13.5-billion submarine, even though the Office of Auditor-General is still in the process of vetting the controversial purchase that will require instalment payments from the state budget for at least seven years.
A Thai delegation led by Admiral Leuchai Ruddit, the Navy’s chief of staff, has left for China to attend a contract-signing ceremony in Beijing after the Chinese state-owned firm CSOC informed Thai officials that the contracts were ready to be signed by authorities from both countries.
The Cabinet granted its approval for the Navy to buy its first submarine from China on April 18, but did not inform the public about the full details of the deal, resulting in public criticism about the transparency of the programme.
However, the Navy has insisted that the country needs to buy as many as three submarines, including the first for Bt13.5 billion, for national security reasons. 
Navy commander-in-chief Admiral Na Areenij and chief of staff Leuchai, who heads the Navy’s submarine acquisition programme, will represent the country at the signing ceremony in Beijing.
The Thai delegation was scheduled to be in China from yesterday until Sunday. Thailand will pay the first instalment of Bt700 million for the first submarine to China under a government-to-government contract while the remaining Bt12.8 billion will be paid over a seven-year period, sources said.
Deputy Prime Minister Prawit Wongsuwan has said Thailand could buy three Chinese submarines for the price of two, but did not give details of the deal.
Critics have expressed concern about the duration of the payment period given the cost involved.
Meanwhile, Auditor-General Pisit Leelawachiropas and other office officials yesterday met with top Navy officials as they sought more details about the deal.
Pisit said the Office would later send a special team to Navy headquarters to be briefed on “confidential” information, adding the inquiry should take about one week to complete.
The Office has stated that it wanted to know the rationale behind the submarine purchase, whether the purchase was necessary, the Navy’s procurement procedure, and why the Navy chose the Chinese-made submarines given a comparative study of available models.
The investigation team would also study the Navy’s terms of reference in detail, he said. 
The investigation followed a complaint filed by anti-corruption activist Srisuwan Janya.
Pisit said the Navy would be free to sign the deal before his office concluded its investigation, but it would submit suggestions soon. 
He added that the deal would proceed depending on the Navy’s decision, which was responsible for the purchase.
The Auditor-General’s stated role is to ensure maximum benefit from state spending and to provide relevant agencies with suggestions.
In addition to questions about the purchase programme’s transparency, critics have disputed the government’s rationale that buying submarines contributed to national defence.