(March 12): Thailand will probe allegations of irregularities in a US$200 million (RM885.6 million) property purchase by the state agency that manages social security contributions of about 25 million workers.

A fact-finding committee will urgently investigate the allegations, Interior Minister Anutin Charnvirakul told reporters on Wednesday. The panel is expected to complete its investigation within 90 days, he said.

The Social Security Office, which manages about 2.6 trillion baht (US$76.8 billion or RM340.0 billion) of mandatory contributions from salaried employees and wage workers in Thailand, has been accused of overpaying for a building it bought in central Bangkok. Lawmakers of the main opposition People’s Party claimed the seven billion baht payment for the commercial building was double the appraised rate. The agency has denied any wrongdoing, saying the price was based on reports from two independent valuers.

With the value of Thai assets from equities to property declining in the face of a weak economic outlook, the Social Security Office last year said it will increase overseas investments and boost allocations towards riskier assets to boost returns. The fund’s total assets in overseas securities may be increased to 50% from about 30%, Labour Minister Phiphat Ratchakitprakarn said in October, as Thailand faces a shrinking workforce and ageing population.

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