The high-profile scandal featuring a flashy watch and diamond ring worn by Deputy Prime Minister Prawit Wongsuwon poses a dilemma for the military regime which came to power in 2014 when the country was in the political doldrums, with the public losing its faith in elected politicians.
Back in 2014, a series of scandals that reflected a lack of transparency and widespread nepotism plagued the then Pheu Thai government, putting the country at risk of turning into a failed state.
It was the military regime under Prayut Chan-o-cha that that attempted to rekindle public hope. The regime promised to turn things around and put the country back on track. The prime minister always blamed politicians and their corruption for the country's crisis.
Yet his administration has hardly been free of scandals. The latest one, with Deputy PM Prawit sporting a watch and ring that do not appear on his on asset declaration list, is causing quite a stir.
Some have called for him to resign as the National Anti-Corruption Commission (NACC) opens a probe into the case. Gen Prawit, the so-called "big brother" of the National Council for Peace and Order, remains tight-lipped.
I hope the prime minister realises the issue needs to be attended to straightforwardly. Otherwise it might put the regime in the same tight spot as the previous administration. I really don't want that to happen.
Gen Prayut must stick to his word about the fight against corruption. He has to prove the regime can make a difference, and not allow nepotism or cronyism to reign.
During his weekly national address last Friday, the PM was adamant the government was serious about weeding out corruption, citing the work of the National Anti-Corruption Commission (NACC) which has upped its asset seizures from corrupt officials, from 180 million baht in 2016 to 853 million baht this year.
The PM also stressed the regime's commitment to fighting corruption, especially in the state bidding process and progress it has made in the crusade against graft.
He said the government has boosted the NACC's manpower to shore up its ability to tackle corrupt officials.
He also boasted the regime had taken many steps to combat corruption, including improving laws and setting up anti-corruption networks.
The regime also introduced programmes such as the Contruction Sector Transparency Initiative (CoST), Integrity Pact, and e-bidding which allow the public to scrutinise the progress of state projects and budget spending. Such programmes are designed to prevent collusion of bidders, which helps ensure transparency and saves state money. He said the programmes have saved about 30 billion baht over the past two years.
Meanwhile, some state agencies including those under the Finance Ministry oblige high-level officials to sign agreements they will do their duty with transparency and responsibility. Some critics deride the pledges as empty, but at least they have a symbolic effect, with the key message that corruption is not to be tolerated.
But to curb corruption efficiently, those involved must confront the issue head-on, meaning those in the wrong, regardless of their power and status, must be punished. The higher the level, the harsher punishment.
A straightforward punishment will show that no one is above the law. But in reality, we are finding the opposite is taking place. Those with power and money usually get away with their crimes. Some have fled the law and enjoy lives of luxury abroad.
We cannot allow that to go on, or the country will continue to be rated poorly by agencies such as Transparency International, which scored 168 countries around the world on what is known as its Corruption Perceptions Index (CPI).
Last year, Thailand scored only 35 on a scale of 0-100 points in the CPI rankings. Its ranking plummeted from 76th in 2015 to 101st place among the 176 countries in the 2016 assessment. Transparency International will release its latest findings at the end of this month. In his Dec 8 address, Gen Prayut expressed the hope the country's CPI score for 2017 would improve. But Gen Prayut may be disappointed. Like it or not, the watch and ring scandal are dealing a heavy blow to the regime's image.
At this point, I doubt if the PM is really serious about lifting the country from the corruption trap that has cost us so dearly in terms of slowing growth, a promise that he made when taking office.
Yet Gen Prayut has to be tough against those involved in graft, regardless of his ties with them, and uphold the good governance principle. If he can't do that, the prime minister's pledges amount to mere lip service.
Wichit Chantanusornsiri is a senior economics reporter, Bangkok Post.
