Procurement high fuel costs. During these three years, the

Procurement fraud is fraud committed within the procurement lifecycle of a product or service (Guile, 2012). According to The Office of the Deputy Prime Minister (ODPM), procurement is the process of acquiring goods, works, and services, from internal and external sources. The process covers the whole cycle from identification of needs, through to the end of a services contract or the life of an asset (as cited in Guile, 2012). Many procurement frauds fall within the procurement exercises which companies obtain the product or services. The main types of procurement frauds are bid rigging or bid splitting, the creation of shell corporations to facilitate fraudulent payments, collusion between suppliers, purchase and contract variation orders, unjustified sole source awards, bribes and kickbacks, and false invoices for products and services for non-existence suppliers (Guile, 2012).  Poor investment choices are problems that have been facing Thai Airways for many years. Piyasvasti believes that political interference with the management and investment is a significant cause of procurement corruption in the company (as cited in Fernquest, 2012). Bangyonng says that every significant procurement approval has to go undergo the stage of procurement approved by the government departments such as Ministry of Transport, The Office of the National Economic and Social Development Board, and The Ministry of Finance (as cited in “??????????????? ????????? ????? ??????????? ??????????????????????,” 2014). Thus, the company has limited flexibility and likely to interfere by the politicians (“??????????????? ????????? ????? ??????????? ??????????????????????,” 2014). These politicians receive bribes or kickbacks in exchange for large contract awards in procurement orders and purchases (“?????? ??????? ??????? ??????????????????,” 2013). For instance, Pamornmontree explains that THAI had purchased four A340-500s and five A340-600s by the approval of the Thaksin Shinawatra government despite the objection of the National Economic and Social Development Board during 2004 until 2005 (as cited in “Former THAI executive wants probe into grounded fleet,” 2017). These aircrafts were used for nonstop flights from Bangkok to the New York and Los Angeles. This route was the first non-stop service to North America (“Former THAI executive wants probe into grounded fleet,” 2017). However, THAI discontinued these routes in 2005 and had stopped using these aircrafts regarding of the high fuel costs. During these three years, the usage of the aircraft had caused an annual loss of seven billion baht (“Former THAI executive wants probe into grounded fleet,” 2017). The procurement fraud is often embedded in the contract and can be difficult to spot as supplier relationships have been long established (Mufutau & Mojisola, 2016). As in this case, the investigation came to light in 2017 when Britain’s Serious Fraud Office (SFO) asserted that Roll-Royce had paid bribes to Thai Airways and government officials to win the contracts for three deals over two decades (Peel, 2017). SFO found that Rolls-Royce made payments in total of 1.3 billion THB between 1991-1992, 1997, and 2014-2015 to Thai employees and government officials (as cited in The Nation, 2017). The company’s procurement of Airbus A340-500s and A340-600s mentioned earlier are one of those corrupt deals (Peel, 2017). The old aircrafts that have been grounded asides from the ones mentioned above are Boeing 747-400s and A330-300s (Peel, 2017). The impairments on these old planes have a direct impact the company’s net loss (Setboonsarng, 2017).