Bangkok: The Social Security Office (SSO) is embroiled in controversy following revelations about a questionable investment in a building in the Phra Ram 9 area. Ms. Rakchanok Srinok, a Bangkok MP from the Prachachon Party, and Mr. Sahasawat Khumkhong, a Chonburi MP from the same party, have raised concerns over the SSO’s decision to spend 7 billion baht on a building valued at 3 billion baht. They allege that political figures, including a former minister, may have been involved in the deal, which resulted in a significant profit margin at the expense of the insured.
According to Thai News Agency, the MPs held a press conference titled ‘Exposing the Sky: Did the Social Security Fund Intentionally Make Mistakes in Investments to Benefit Their Associates?’ to highlight governance issues within the SSO. Ms. Rakchanok emphasized that the fund’s survival hinges on the effective management of its 2.6 trillion baht assets. She criticized the SSO’s decision to purchase an abandoned building for more than twice its value, questioning the rationale behind such an investment and the potential influence of political figures.
The building, initially abandoned during the Tom Yum Kung economic crisis, was renovated before being sold to the SSO. Despite claims of potential returns, the occupancy rate remained low, casting doubt on the investment’s viability. Ms. Rakchanok pointed out that while the building is projected to generate 40 million baht in 2024, management and fund fees are expected to reach 50 million baht, leading to potential annual losses.
Concerns were also raised about the building’s ownership history, with Ms. Rakchanok urging the media to investigate potential political connections. She questioned why the SSO opted for a single investment instead of diversifying its portfolio, especially given its lack of experience in asset management. The building’s valuation during the COVID-19 crisis was 3 billion baht, yet the SSO agreed to a 7 billion baht purchase price, raising questions about the decision-making process.
Mr. Sahasawat highlighted the role of the Social Security Office Secretary-General in approving such investments. He questioned whether political interference influenced the decision, as appointments within the SSO coincided with the investment’s timeline. The establishment of a trust fund worth 9.8 billion baht, primarily for this building, further complicated the transaction and raised suspicions of concealment.
The MPs called for transparency and accountability in the SSO’s investments, urging the Prime Minister to investigate the matter. They emphasized the need for reform within the SSO to prevent future occurrences of politically influenced investments. The upcoming Social Security Office board meeting will address these concerns, with society and the media encouraged to monitor developments closely.