Thailand govt spends 22.5 bn baht to purchase submarines from China amid economic slump

Thailand government’s approval of the purchase of two more submarines from China for 22.5 billion baht has irked citizens as the country is witnessing economic slump due to coronavirus pandemic. The deal for three submarines was made in 2017, under a 36-billion-baht contract, by the military regime of Gen Prayut Chan-o-cha who currently governs the Southeast Asian nation.

According to local media reports, the purchase of the first submarine S26T is already complete and will be commissioned in the Royal Thai Navy in 2024. Pheu Thai Party lawmaker Yutthapong Jarassathian reportedly said that there is no obligation on the government to commit to the other two purchases since it wasn’t a genuine government-to-government deal. 

Jarassathian told Bangkok Post that the deal was signed by navy chief Adm Luechai Ruddit, claiming that he had no authority to represent the government. He further said that only a Prime Minister or a Foreign Minister can provide legality to such deals or in some cases the Defense Minister if he or she has been given the authority.

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Jarassathian, also the deputy chairman of the subcommittee under the House committee on durable product items, state enterprises, ICT equipment, and revolving funds, said that the massive amount spent on submarine procurement could have been used to help unemployed families and poor people affected by the pandemic.

China received a big chunk

The Thai government was isolated by European allies after the 2014 coup by the military junta, giving an opportunity to China to receive a big chunk of Thailand’s military budget. After 2015, Chinese companies received orders to supply tanks, armoured vehicles, and submarines to Thailand’s junta, a study by Stockholm International Peace Research Institute found.

The Royal Thai Navy has defended the controversial procurement of two submarines during an economic crisis. Navy chief of staff Adm Sittiporn Maskasem told a press briefing on August 24 that two more submarines have been purchased as part of its defence strategy, condemning the “political attempts” to use the issue for attacking the government.

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(With ANI inputs)