Concerns raised by the Thai pharmaceutical industry in recent years of alleged corrupt practices by employees of state hospitals, has led to the implementation of more stringent legislation to combat the problem of state funds seeping through a porous pharmaceutical procurement system.

A new notification from the National Anti-Corruption Commission (NACC) is expected to have a significant impact on companies that do business with the Thai government. On August 11, 2011, the NACC issued the Notification re: Rules and Procedures Concerning the Preparation and Disclosure of Revenue and Expenses Accounts of Projects which Individuals or Juristic Entities are Contractual Parties with Government Agencies (Notification).

Recent trends showcase a clear intent by two of the world’s global powers to tackle corruption abroad. The United States, through the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC), has dramatically increased its investigation and enforcement of the Foreign Corrupt Practices Act (FCPA). In addition, in 2010 the United Kingdom acted aggressively to address an historical weakness in its anti-bribery laws by enacting the UK Bribery Act.

In response to regular queries received from our multinational clients, David Lyman, Chairman & Chief Values Officer of Tilleke & Gibbins, has been providing periodic updates on the ongoing political events in Thailand since 2006. This Viewpoint summarizes and updates several of these reports, while providing observations on the Thai political landscape ahead of the upcoming elections.