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Published on October 13, 2007

Defence Minister Boonrawd Somthas yesterday suspended the controversial arms deal between Thailand and Ukraine, ordering a halt to the purchase of 96 armoured personnel carriers (APCs) for Bt4 billion.

Boonrawd said questions still lingered over the deal and he would not proceed until all parties were convinced the procurement was in the armed forces' best interest.

"At this juncture, we are one step away from signing the deal. I am the person who will sign off on it. But because [political] problems have risen, I must suspend it until we get clarification," Boonrawd said.

Members of the National Legislative Assembly (NLA) questioned the procurement deal with Boonrawd during Wednesday's debate, asking whether the Ukrainian APCs were adequate for the country's security needs.

A leading security expert, Chulalongkorn University's Associate Professor Panitan Wattanayagorn, said the military had employed the same old logic in this particular purchase.

He said some of the 96 APCs would be set aside for spare parts as part of a strategy to cut costs.

"They wanted goods that are high in quantity but cheap in price. We should be moving towards more quality APCs even though the cost may be higher and the number may be less," Panitan said.

The thickness of the armour of this particular model, the BTR-3E, could not sustain a hit from a Rocket Propelled Grenade (RPG), the defence expert pointed out.

And although RPGs were not being used in the deep South, the Thai armed forces should be acquiring vehicles that could be incorporated into a rapid deployment unit.

Ukraine is reportedly one of the world's top ten arms exporters. The country outbid eight other countries, including Russia, China and Canada.

Panitan said the model Ukraine wants to sell to Thailand was an upgraded APC with a bigger and better engine but the armour was still much thinner and weaker than other makes, such as another model by General Motors Canada.

The procurement deal has caused a rift in the Defence Ministry, pitting Admiral Banawit Kengrien against the then army chief, Deputy Prime Minister Sonthi Boonyaratglin. The incident resulted in the transfer of Banawit to an inactive post, reportedly because he was too outspoken about the deal.

The embattled admiral maintained that he questioned the procurement in his capacity as an NLA member.

The Office of the Auditor-General had raised a number of points, including whether the Ukraine APC has a proper after-sale maintenance agreement and whether it was in line with national procurement policy.

Moreover, an industry source said Ukraine was not even in the original 10 bidders when the tender closed in mid-May.

Controversy surrounding the buying of military equipment is not new in Thai security circles. Just before the 1997 financial crisis, Thailand was hit with another row over the Armed Forces Supreme Command's plan to buy APCs from France that were considered to be a prototype.

Thailand's procurement policy only encourages purchasing hardware that is part of the seller country's inventory and is against the purchase of prototypes for fear they would no longer be manufactured.

The Nation