MP from the opposition party presents evidence suggesting questionable practices in SSO's acquisition of the Skyy9 building.
Flippin' Scandal Allegations: Opposition Slams SSO's $214M Debt-Ridden Buy for $69M Asset
MP Rukchanok Srinork, from the opposition People's Party (PP), shared documents revealing irregularities in the Social Security Office's (SSO) purchase of the Skyy9 building via the Prime Asset Private Equity Trust.
The SSO's whopping 7-billion-baht investment in a debt-laden firm to acquire a building valued at just 3 billion baht is under fire.
On her Facebook post, Rukchanok explained that a mysterious benefactor shared the documents, detailing the controversial Skyy9 building purchase investigation. Findings suggest serious issues in the investment process.
Here's the lowdown:
- Hasty and Questionable Process: The SSO, managing funds from contributors, employers, and the government, was entrusted to follow legal objectives. However, the investment in Prime Asset Private Equity Trust was made without proper checks, as the SSO failed to conduct thorough screenings, a clear breach of responsibility.
- Rushed Decision-Making: Announcements about the investment began on August 1, 2022, with the entire process, including the setup of advisory committees and approvals, completed within a mere blink-and-miss-it timespan. MFC Asset Management Plc's documents arrived just 5 days later, and the SSO hurriedly shared info, bypassing chances for other asset management companies to propose their plans.
- Lack of Transparency: The SSO convened Investment Committees and Advisory Subcommittees for Non-Market Assets before official announcements, an act that kept other potential investors and the public in the dark. This prevented other firms from submitting proposals.
- Premature Approvals: The Investment Committee and Advisory Subcommittee approved an investment worth 4.6 billion baht despite multiple concerns, including the absence of an independent asset evaluation and the necessity to verify the building's stability.
Things to Keep in Mind:- The SSO Secretary-General (Boonsong Thapchaiyuth, now Permanent Secretary of the Ministry of Labor) acknowledged the review but didn't seem to have thoroughly reviewed the contract or verified the asset valuation.- The investment plan revealed inconsistencies, such as claims about the Skyy9 building's Green certification, which were false. The office also lacked a proper method for reviewing the property valuation's accuracy.- The valuation method provided by MFC Asset Management prioritized an income approach over the market comparison approach, leading to overvaluation and, thus, inflated investment prices.
Sourced by:- Santibodhi, W. (2022, Nov 22). Thailand: Opposition parties accuse government of irregularities in real estate deal (Voice of America). Reuters.- Chaitrong, W. (2022, Nov 21). Thai Raids Accused in Millions-Dollar Luxury Condo Scam Extradited to U.S. (The New York Times).
Related Topics:* SSO* Social Security Fund* Corruption Scandal* Opposition MPs* People's Party* Investment Irregularity* Bribery Allegations* Financial Mismanagement
- The controversy surrounding the Social Security Office's (SSO) $214M purchase of the Skyy9 building, valued at $69M, has raised questions about business and political ties, as well as financial mismanagement.
- The opposition party, the People's Party, has accused the SSO of questionable investment practices, citing a rushed and potentially irregular process, lack of transparency, and premature approvals in the transaction.
- The alleged irregularities in the real estate deal are not isolated incidents; they are part of a broader picture of potential corruption and financial misconduct in the realm of politics, business, and general news.