Thai PM Srettha Thavisin's pick of frigate from 'elder brother' China over submarine sparks probe into deal
Thailand's Prime Minister Srettha Thavisin has backed a revised deal to buy a frigate from China instead of a submarine as the decision faced scrutiny from an opposition-controlled parliamentary panel which said the trade-off was not worth the investment.
State-run China Shipbuilding & Offshore International signed an agreement with Thailand's navy in 2017 for the Yuan class S26T submarine worth 13.5 billion baht (US$373 million).
The project struggled to make progress after the manufacturer failed to obtain diesel engines made by Germany's MTU as stated in the contract.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
Berlin said the export was refused because of the equipment's use for a Chinese military item, prompting the firm to offer Chinese-made engines for the vessel.
But Thailand could not agree on accepting that option despite several rounds of talks.
Srettha, who met Chinese President Xi Jinping in Beijing last week, said the tweaked deal was the "best option" available.
He said the procurement was favourable to the kingdom though it costs 1 billion baht more than the submarine pact, adding the defence ministry's negotiation with China was making headway.
Defence Minister Sutin Klungsang also echoed Srettha's views, saying all aspects of the contract, including legal implications, were considered before opting for the frigate.
"I think it's the best way out under the circumstances," Sutin said.
Former election commissioner Somchai Srisutthiyakorn accused the minister of unilaterally deciding to buy the ship, saying the government should fine the Chinese company and demand a refund.
"This [frigate acquisition plan] is not the sort of decision the defence minister can make on his own," he said.
Sutin said he did not view the modification as a violation of the contract and it just did not turn out as agreed upon.
He said the navy chief and other officials involved in the project were consulted and amending it was necessary to enhance Thailand's ties with China.
The House committee on national security, led by the Move Forward Party, said it would launch an investigation into the deal.
MFP lawmaker Rangsiman Rome questioned why the navy wanted to add a new frigate to its existing fleet as it had earlier insisted that the submarine was crucial to maintain Thailand's maritime security, The Bangkok Post reported.
"The force can't claim one day that it badly needed a sub, and then suddenly it doesn't want it," Rangsiman said.
Sutin said he was ready to testify before lawmakers.
Then prime minister Prayuth Chan-ocha's administration had initially planned to acquire three Chinese submarines worth more than US$1 billion.
Those plans did not materialise following public backlash and the pandemic-induced budget constraints.
Local media reported Srettha raised the frigate issue with Xi and Chinese Premier Li Qiang during their talks at last week's belt and road summit, where the Thai leader described Beijing as his country's "elder brother".
"It is like the saying that China and Thailand are not far from being siblings, but I would like to confirm that China is the elder brother," Srettha said.
He also committed to strengthening trade and cultural relations with China, and invited Xi to visit Thailand.
China last year pumped US$2.3 billion into the Southeast Asian nation's major sectors, such as electronics and automobiles, according to the Thai Board of Investments.
This article originally appeared on the South China Morning Post (SCMP).
Copyright (c) 2023. South China Morning Post Publishers Ltd. All rights reserved.
