Labour Ministry under scrutiny for 7 billion baht office purchase
The Ministry of Labour confirmed its willingness to cooperate with a panel investigating claims that the Social Security Office (SSO) spent an excessive 7 billion baht on acquiring the SKYY9 Centre on Rama IX Road, despite its appraised value being 3 billion baht.
Labour Minister Phiphat Ratchakitprakarn stated that the ministry is committed to ensuring transparency throughout the investigation. He highlighted that the purchase process was reviewed by independent companies to evaluate its investment value.
A deputy permanent secretary for the Labour Ministry, the current SSO secretary-general, and the SSO deputy secretary-general have been appointed to the seven-member inquiry panel.
On Tuesday, Prime Minister Paetongtarn Shinawatra instructed Interior Minister Anutin Charnvirakul to form a panel to probe the SSO’s acquisition of the SKYY9 Centre. Anutin, who also oversees the Labour Ministry, mentioned that Phiphat requested his involvement in the investigation. He noted that the alleged overspending occurred during the tenure of the current permanent secretary for labour when they were the SSO’s secretary-general.
Boonsong Thapchaiyut, the current permanent secretary for labour who was the SSO’s secretary-general at the time of purchase, declined to comment but acknowledged the query regarding the legality of the purchase with a nod.
Deputy Commerce Minister Suchart Chomklin dismissed allegations by Rukchanok Srinork, a People’s Party MP for Bangkok, who claimed his involvement in the purported overspending. Suchart defended himself on Facebook, labelling the accusations as defamatory and politically motivated.
Investigation
On Monday, March 10, Rukchanok raised concerns over the SSO’s purchase of the SKYY9 Centre, alleging it was bought for more than twice its estimated value.
Sahassawat Kumkong, another People’s Party MP, suggested that a significant percentage of the purchase was financed through a trust, and the then labour minister had transferred a close aide to oversee the investment, including the building’s acquisition.
Rukchanok further claimed that the SSO acquired the company owning the building, which had a debt exceeding 2 billion baht.
Marasri Jairangsee, the current SSO secretary-general, explained that the building was acquired through a Private Equity Trust under the Trust for Transactions in the Capital Market Act, regulated by the Securities and Exchange Commission (SEC).
She stated that independent SEC-certified estimators valued the building at 7.3 billion baht using the income approach, while the cost approach valued it at 8 billion baht. However, the SSO spent 6.9 billion baht on the acquisition, reported Bangkok Post.
The SKYY9 Centre, originally abandoned after the 1997 financial crisis, underwent several ownership changes before being developed into I.C.E. Tower and later rebranded as Cas Centre.
By 2022, the SSO had invested 6.9 billion baht from a private equity trust to purchase the building, with additional funds allocated for overseas investment.
The building, sold by AGRE 101, currently has approximately 45% of its space rented, with expectations to fill the remaining 20% within the year. As of March 10, the SKYY9 rental fee was 600 baht per square metre, according to DDproperty.
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