OAG reply on Chinese submarine deal says virtually nothing: Defence Minister

WEDNESDAY, JANUARY 10, 2024

Defence Minister Sutin Klungsan said on Wednesday that though the Office of the Attorney General (OAG) has responded to its query about the controversial Chinese submarine project, it has not really said anything.

The Defence Ministry had called on the OAG to ask if the contract with the Chinese shipbuilder should be amended now that it has confirmed that the submarine cannot be fitted with a German diesel engine.

Sutin said that though he has not seen the response personally, he has learned that it is a generic reply without clear or specific guidelines on what to do next.

“It’s like the Council of State’s response to the government’s question on whether it can enact a bill to borrow 500 billion baht to finance the digital wallet scheme,” he said.

Instead of saying yes or no, the Council of State had reportedly only said that the government should carefully consult other relevant agencies to see if the economic situation warranted the borrowing of huge amounts in an emergency. It also advised the government to strictly observe the Financial Discipline Act.

As for the submarine project, Sutin said the Defence Ministry would have to seek the Cabinet’s approval, no matter how the contract is amended.

Since Germany prohibits such engines from being used in Chinese military hardware, Beijing proposed a China-made engine for the submarine instead. However, the offer was later rejected by the Royal Thai Navy.

Instead, the navy offered to purchase a frigate from China, but the plan was shelved because the frigate would have cost 1 billion baht more.

Sutin said he has yet to read OAG’s response and will later decide whether to ask the Cabinet if the 13.5 billion baht contract should be extended.

He added that no matter how the contract is amended, his ministry’s allocation under the fiscal 2024 budget will not be affected.

He said the allocation for the submarine deal under the fiscal 2024 budget would be used for the ongoing construction of the submarine port.

He said even if the submarine purchase deal is scrapped, the building of the port will not be a waste.

He explained that the government has so far signed contracts to build the port in two stages, and modifications can be introduced for use with other ships. The third stage making the port exclusive to submarines has not been signed yet, he added.