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Probe ordered into 90 million baht graft report. It was reported that the defense inspector-general has been ordered to investigate alleged corruption totaling up to 90 million baht in a helicopter-repair contract. Allegations against the air force include illegally waiving value-added tax for the firm hired to repair 19 helicopters, costing the state more than 61 million baht. It is also alleged that excess parts were purchased from an unauthorised producer for unusually high prices. (Bangkok Post 26 Mar 2004 summary by Sherldine Tomlinson). NCCC [National Counter Corruption Commission indicts former MP. The National Counter Corruption Commission (NCCC) yesterday indicted former Samut Prakan MP Poolphol Asavahame for allegedly failing to report millions in shares. NCCC caretaker chairman Opas Arunin said that Poolphol had withheld information about his and his wife’s shares in six asset declarations submitted to the anti-graft watchdog from 1997 to 2002 when he was an MP. (The Nation 09 Jan 2004 summary by Sherldine Tomlinson).
BANGKOK: AMLO TO
START INVESTIGATIONS OF FALSE DEFAULTERS OF DEBT.
MORE MONITORING AT CUSTOMS LOCATIONS Source from the Thai Customs Department, the body will invest nearly 100m. baht to install closed-circuit television system at 52 customs checkpoints nationwide under an anti-corruption campaign. It’s said that such system would be used 24/7 with video and audio feeds sent to a central monitoring office at the department and would be kept for 5 years at least to serve as proof in case allegations of state corruptions surfaced in the future. The Customs Department has long been considered one of the most corrupt agencies in the civil service. (BangKok Post, 1 Dec 2003, summarized by Hanh Vu).
EX-MINISTER FOUND GUILTY OF CORRUPTION Rakkiat Sukthana, Thai former health minister has been sentenced to 15 years in jail for the charge of taking 5 million baht ($125,000) graft from a Thai drugs firms and abusing his authority as a public servant during his working term. He is the first Thai cabinet member to be imprisoned for bribe. One of his aides, Jirayu Charasthien, is now serving a six-year jail term after the Supreme Court found him guilty of corruption in April 2002. (AFP 28 Oct 2003, summarized by Hanh Vu).
MINISTER SURIYA ORDERS PORT TO STOP RAMPANT BRIBERY Having faced with many bribe complaints about Port Authority of Thailand (PAT), Transport Minister Suriya Jungrungreangkit gives PAT three months to clean up its house or face a drastic corruption crackdown. According to the minister, bribe-taking was still rife at PAT and the ill-manner must be corrected. (Bangkok Post, 16 Sept 2003, summarized by Hanh Vu).
Thaksin
warns cops linked in bribe case. Prime Minister
Thaksin Shinawatra has warned that police may face transfers if they are
implicated in a corruption scandal prompted by a massage parlour tycoon’s
revelations. Chuwit Kamolvisit, a high-flying owner of six massage parlours,
caused a national sensation, when he claimed that he paid about 12 million
baht (288,000 dollars) a month to police to keep them away from his
businesses. Massage parlours are frequently legal fronts for prostitution in
Thailand. Thaksin said that he would mete out justice and warned that the
entire police staff from some stations could be transferred if they were
found to be involved. (Borneo Bulletin
18 Jul 2003, summary by Sherldine
Tomlinson). Thai PM vows to banish police corruption in five years. According to a Thai newspaper, Thai Prime Minister Thaksin Shinawatra, has vowed to rid the country of corrupt police who take bribes from “mafia” figures within five years. Thaksin said that corruption was so deep it had been taken for granted as part of daily life. “I need four to five years to put the police back in line. One can’t tighten all nuts at the same time with just one spanner,” said Thaksin. Thaksin’s comments were in response to reported comments about police corruption by a Thai businessman arrested for running a prostitution business and employing underage girls in his chain of Bangkok massage parlours. (Khaleej Times, July 10, 2003, summary by Sherldine Tomlinson).
DEMOCRATS TARGET GOVERNOR Under the Democrate party's request, Wit Limanonwarachai – Nakhon Phanom governor and Weerasak khanchai, a Nakhon Phanom-based C-8 official of the Public Works and Town Planning Department would face a court charge for alleged involvement in corruption relating to 39 road projects worth 40 million baht in Nakhon Phanom. Mr. Alongkom Pollabutr, chairman of the opposition's anti-graft panel alleged the pair breached anti-price collusion law which required state officials to scrap bidding if it lacked transparency. Interior Minister Wan Muhanmad Nor Matha was to blame because he oversees the Public Works and Twon Planning Department but could not rid the agency of corrupt officials. (Bangkok Post, 09 May 2003, summary by Hanh Vu).
UNOFFICIAL
WATCHDOG TO KEEP EYE ON GOVERNMENT To deal with the criticism aiming at the
government's performance on issues of poverty, drugs, corruption, activist
groups plan public meetings of a "people's council" to make
frequent checks on the government's performance to redress what they see as a
lack of effective opposition in parliament. According to Suriyasai Katasila,
secretary-general of the Campaign for Popular Democracy, the "people's council'' would also
hear comments from academics, human rights groups and pro-democracy
organizations and air useful information so that people could know what the
government was really doing. (Bangkok Post 24 Mar 2003, summary by Hanh Vu). PITAK, SOMSAK TO BE JUDGED NEXT WEEK. The opposition’s petition for the impeachment of Pitak Intarawittayanat (former Deputy Prime Minister) and Somsak Thepsuthin (Industry Minister) will be considered by the anti-graft agency next week. Mr. Pitak is being accused of the encroachment on forest reserves in Phuket, while Mr. Somsak is being accused of interfering in the state media’s news coverage. According to the chairman of the National Corruption Commission, Opas Arunin, sub-committees were to report their findings on Jan 29. Meanwhile, Deputy Prime Minister Suvit Khunkitti is the focus of investigation into three allegations, of which the education reform case has been concluded. He is suspected of involvement in two scams in the Ministry of Education, and the failure to implement education reforms. (24 Jan 2003, Bangkok Post, summary by Radhika Das).
HIGH REWARDS FOR
ANTI-MONEY LAUNDERING ACTIVITIES EXPECTED
The Thailand Anti-Money Laundering Office (AMLO) has compiled a
proposal on rewards for its successful investigators and informants. Under
this draft, officials who are injured or die on duty are also entitled to
financial compensation. If the proposal which was scheduled for consideration
at the Cabinet's meeting on Tuesday, is approved by the Cabinet, informants
and officials of the AMLO will enjoy a reward system similar to staff at the
Office of the Narcotics Control Board (ONCB), where informants receive 10
percent. (VNA, Jan 20, 2003, summary by Hanh Vu). tollway fare scandal costs 7 mln dlrs each YEAR . Thai Transport
Minister Suriya Jungrungreangkit said that the toll way fare embezzlement has
costs the state $US6.9 million in revenues each year. Before the probe, the
daily toll- way revenue collected by the department from four expressway toll
plazas amounted to $US2.5 million.
Jungrungreangkit stressed that by comparing the daily revenue figure
collected by the soldiers with that of its toll-way officials, there was
strong evidence of corruption taking place within the agency. He added that
those responsible for the embezzlement would soon be held responsible for
their actions as a fact-finding committee probing into alleged corruption by
concerned officials. (Xinhua News
Agency, January 13, 2003 summary by Sherldine Tomlinson). FARM PRICING TO BE
TACKLED It's reported that a special team would be formed to examine the
state's farm price stabilizing system to solve long - standing corruption.
According to Thailand Prime Minister Thaksin Shinawatra, loopholes in farm
price intervention schemes, including those involving longan and rice, had
been left unplugged for far too long. (Bangkok Post, 14 Jan 2003, summary by
Hanh Vu). Anti-corruption drive to continue TRANSPORT Minister Suriya
Jungrungreangkit said he would continue with his ongoing drive to suppress
corruption at the State Railway of Thailand (SRT) and at the Department of
Highways. Suriya said that the Transport Ministry will try to wrap up its
probe into allegations of corruption relating to the lease agreement that SRT
has with Central Pattana. The case involving a group of corrupt officials and
temporary employees has resulted in revenue losses. The department is also
conducting a disciplinary probe on toll collectors concerned. (Business
Day News, January 3, 2003, summary by Sherldine Tomlinson). AUDIT FINDS GRAFT IN 47 PROJECTS. Authorities in Thailand have launched investigation into 47 corruption-plagued government and state enterprise projects. According to Mrs Jaruwan Mainthaka, the auditor-general, these corruption schemes have cost the country about 60 billion baht. Among the aforementioned schemes are a long-distance telephone project, an annual vehicle tax scheme, and a project to build 11 silos. (Bangkok Post, December 13, 2002, summary by Pavlidis George).
FIGHT CORRUPTION ‘BY PAYING POLICE MORE.’Higher salaries are among reforms being considered for Thailand's police force to combat corruption. The government is considering an overhaul of the police force as well as the provision of better pay to reduce graft and bribery. Deputy Prime Minister Chavalit Yongchaiyudh said many reforms were required in order to stop police from turning against the people they were supposed to serve. 'Human resources are the key to change,' he said, adding that constables must be assured of a decent living if an honourable force was to be created. He said that better pay could be provided if the force were made more efficient and budgeting improved. The deputy PM also said the meagre sums paid to policemen encouraged them to seek alternative sources of income from illegal activities such as serving influential figures or taking bribes from drug traffickers and gambling dens. (The Straits Times, 19 Nov 2002, summary by Gray Charlton).
NINE [SENIOR TRANSPORT MINISTRY] STAFF
SACKED FOR CORRUPTION. Thailand's Transport Ministry has sacked nine senior
transport staff for serious malfeasance in relation to the Harbour
Department's 49-million-dollar dredger-purchase scandal. The decision, which
the National Counter Corruption Commission earlier recommended, would become
effective immediately. The dismissed
staff will also face suits for damages caused by the collapse of the dredger
purchase. The case also caused ten others to lose their pension rights.
(Bangkok Post, October 29, 2002, Summary by Eliza Villarino). RAKKIAT [FORMER PUBLIC HEALTH MINISTER] MAY HAVE ASSETS CONFISCATED It's reported that former public health minister Rakkiat Sukthana' assets, including 233 million baht in bank deposits, may be confiscated after the National Counter Commission declared last month that Mr. Rakkiat unusually wealthy and ruled he had hidden cash and property worth more than 50 million baht under other people's names. (Bangkok Post, 21 Oct 2002, summary by Hanh Vu).
POLICE TO LIVE AS MONKS IN ANTI-CORRUPTION EFFORT, REPORT SAYS About 20,000 police officers - nearly 10% of the force will be asked to live as monks at Buddhist temples in a novel new fight against police corruption chalked up by assistant national police chief Lt. Gen. Udom Charoen, the Bangkok Post newspaper reported Saturday. This dose of religious enlightenment is believed to help police fight corruption in the force but the effectiveness of the method is still be questionable when many Buddhist temples are awash with cash from donations and lots of ethic evils practiced among monk circle in recent years have been exposed by the media, of which drinking alcohol, murder and financial wrongdoings, to name but a few. (AP, 05 Oct 2002, summary by Hanh Vu).
BANGKOK: Thailand prepares for widespread reforms of bureaucracy. Thailand’s parliament is set to pass legislation to revamp government ministries and do away with automatic pay raises for civil servants in efforts to reform a bureaucracy long criticized as inefficient and corrupt. The legislation would allow the government to increase its ministries from 13 to 20 as part of a plan to more clearly define the ministries´ roles. It also would link pay raises to performance, replacing a system of guaranteed annual raises. The bill, which already passed the House of Representatives, was passed by the Senate with small changes and sent back to the House for its approval of those changes. The legislation also aims to limit overlapping authorities. (Yahoo News, September 23, 2002, summary by Sherldine Tomlinson). WORK HALTED ON REPORT OF IRREGULARITIES. The Auditor General's Office and the National Counter Corruption Commission are investigating into irregularities in the bidding process for the construction of the 16.9 billion-baht bypass road, running from Suksawat to Bang Phli. The ministry has already ordered a temporary freeze on all work on bypass until the conclusion of the investigation. (Bangkok Post, September 10, 2002, summary by Pavlidis George).
FRESH DIRT THROWN AT ZOO'S CHIEF.
Already a subject of a probe over the death of a baby hippopotamus,
Zoological Park Organisation director Pisit na Phattalung is facing fresh
allegations of mismanagement and corruption at Songkhla zoo. An insider
revealed that the inquiry panel led by PM's Office deputy permanent secretary
Rongpol Charoenpan is zeroing in on the death of a giraffe and the
disappearance of an antelope, a tiger cub and a whole host of birds. The body
also intends to look into the zoo's purchase of overpriced animal feed,
acquisition plants from outside sources despite having its own nursery, the
five-million-baht payment for two rhinoceros and other complaints on
irregularities at several facilities. Pisit denied the accusations and
retorted that politicians and state officials who are hungry for power are
after him. (Bangkok Post, August 29, 2002, Summary by Eliza Villarino). GOVERNMENT SEEKS LEGAL LOOPHOLES TO STOP PROBES After brushing aside the opposition comfortably in a parliamentary censure showdown, Prime Minister Thaksin Shinawatra's has discovered legal loopholes to the impeachment investigations of nine ministers. The Thai Rak Thai-led coalition will mobilise its legal experts to closely monitor the current impeachment procedures being carried out by the National Counter Corruption Commission (NCCC), a high-ranking government source. Among those facing impeachment are Finance Minister Somkid Jatusripitak and Deputy Premier Chavalit Yongchaiyudh. (The Straits Times, May 30, 2002, summary by Sherldine Tomlinson).
GRAFT
FIGHTER SUES EDITOR OF THAI DAILY. Thammanoon Ruengdit of the National
Counter Corruption Commission accused the editor of a Thai daily of breaching
the anti-corruption law by publishing an NCCC report without permission.
Thammanoon Ruengdit filed the complaint against Jirapong Tempium, editor of
the Naew Na newspaper. Thammanoon Ruengdit claims that the newspaper
published the opinion of an NCCC working group without its permission. The
working group had dealt with alleged irregularities involving an air force
scheme to hire the Israel Aircraft Industries to repair 19 UH-1H helicopters.
The working group had reached the conclusion that the scheme lacked
transparency and the Israeli firm was found to be unqualified. (Bangkok Post,
May 22, 2002, summary by Pavlidis George). Bangkok, OPPOSITION SUBMITS
NO-CONFIDENCE MOTION AGAINST 15 MINISTERS. Opposition parties submitted
no-confidence motions against 15 government, accusing them of corruption.
Seven junior ministers and eight Cabinet ministers in charge of finance,
interior, industry, commerce, defense, labor and social welfare, education
and the Prime Minister's office have been named in the no-confidence motion.
The motion does not pose any threat to the government of Prime Minister
Thaksin Shinawatra, which holds an overwhelming majority of 376 out of 500
seats in the Lower House. The Prime Minister said, "the motion is
nothing. It is merely a waste of time but what I am concerned about is that the
opposition is exploiting a loophole in the law to seek impeachment of
ministers." (Associated Press, May 10, 2002, summary by Pavlidis
George). POLITICAL GRAFT COURT HANDS DOWN ITS FIRST VERDICT A special Thai Supreme Court panel focusing
on political corruption cases handed down its first verdict since it was set
up in 1998, sentencing a former ministerial adviser to six years in jail. The
nine-judge Supreme Court bench found Jirayu Charasathian, who served as chief
adviser to the public health minister from 1997 to 1998, guilty of abusing
his authority by encouraging and forcing state hospitals to buy medicines
from private firms at inflated prices. It was also alleged that Jirayu
received commissions from the pharmaceutical companies. The case, which is the
only one the panel has tried so far, was submitted in November 2001 against
Jirayu and Narongsak Hengchaisri, who was acquitted due to lack of evidence.
The panel was created under a reformist constitution in 1998. (Yahoo News (Associated Press), April 24,
2002 summary by Sherldine Tomlinson). PROBES USING DUBIOUS ARTICLE 40
SUSPENDED. The Anti-Money Laundering Office (AMLO) has suspended the
investigations of cases pursuant to Article 40 of the Money Laundering Act.
AMLO secretary-general Peeraphan Prempooti and information director Sihanart
Prayoonrat had earlier invoked Article 40 to summon the banking records of
NMG editors and a score of activists criticizing the government. The
suspension will be in force until such time the Administrative Court completes
a review of a suit involving Nation Multimedia Group (NMG) editors who
accused the AMLO of undertaking an unlawful investigation. AMLO has been
instructed by it board’s chair, Deputy Prime Minister Korn Dabaransri, to
amend its investigative procedures amid the recent scandal over unjust
probes. The new procedures would include at least three amendments: the
verification of anonymous tips-off, the mandatory endorsement of the
Financial Transaction Committee before the start of a probe, and the mandatory
citing of Article 38. Article 38 gives AMLO the authority to conduct
confidential probes based on incriminating evidence for alleged violations in
the seven types of offenses under the agency’s jurisdiction. In agreeing to
review the NMG editors' suit, the Administrative Court had stated the
investigation based on Article 40 was unlawful and that two officials had
wrongly invoked Article 40, which did not authorize them to call for banking
records. Article 40 empowers the AMLO to check money-laundering activities
under the oversight of the five-member Financial Transaction Committee. The
said committee, headed by Cabinet secretary general Vishanu Krua-ngam, stated
that all Article 40-based investigations had been conducted sans the approval
of the five-member committee. Based on the Vishanu report, Prime Minister
Thaksin Shinawatra ordered a disciplinary probe into Peeraphan and Sihanart.
Both officials had been notified of the charges. The disciplinary committee
chairman, Chaiyos Hemarachata and Prime Minister Thaksin Shinawatra did not
mention the severity of charges against the two officials. A group of
activitists stated that they will file a suit against AMLO for assaulting
their constitutional rights and freedoms and send petition for impeachment against
Peeraphan and Sihanart to the National Counter Corruption Commission.
Democrat MP Suwaroj Palang has urged the government to start criminal
proceedings for gross misconduct top of the disciplinary investigation. The
AMLO has denied in its additional writ submitted to the Administrative Court
that Thaksin had either previous knowledge or had attempted to influence its
investigation. (The Nation (Thailand), April 4, 2002, summary by Eliza J.
Villarino).
GOVERNMENT EXPELS TWO JOURNALISTS Thailand’s government has ordered the expulsion of two foreign journalists who was working for Dow Jones´ Far Eastern Economic Review (FEER) for allegedly threatening the country’s national security and social order. The Thai immigration police has sent letters to Shawn Crispin, the Bangkok bureau chief of FEER and its sister publication, the Asian Wall Street Journal, and to Rodney Tasker, a correspondent, at the weekend, telling them their visas had been revoked and giving them 48 hours to appeal. The notification papers cited an article in the January 10 issue of FEER that suggested there were strained relations between King Bhumibol Adulyadej, the country’s constitutional monarch, and Thaksin Shinawatra, Prime Minister. Thai laws strictly prohibit any criticism of the king or the royal family and the country also has very few laws that bans any publication of material threatening that national security or Thai morals. Most Thais avoid any sensitive comment about the king, whom they deeply revere. The expulsion order has set off a flurry of criticism from Thai opposition politicians and press watchdogs, who have said that the move undermines Thailand’s reputation as a bastion of media freedom. (Financial Times, February 26, 2002, summary by Sherldine Tomlinson).
Premier´s family company in telecoms furor. A Thai government plan to free private telecommunications companies from burdensome revenue-sharing contracts in 2006 has provoked a backlash from critics who accuse Prime Minister Thaksin Shinawatra of trying to protect his family´s telecommunications empire. The furor centres on the terms for Thailand´s private telecoms operators to convert their existing concessions with state telecoms companies into independent licences, a long-pending change considered crucial for improving competition and efficiency. But political watchdogs, consumer groups and academics are complaining that a framework approved by the State Enterprise Policy Committee last week favours private operators at the expense of state companies, which stand to lose an estimated Bt290bn (Dollars 6.6bn, Pounds 4.6bn) in potential revenues. Critics also argue that Mr Thaksin - who made his fortune by founding Thailand´s biggest private telecoms conglomerate - has a serious conflict of interest on the issue, and that his government should suspend the conversion process until an independent telecoms industry regulator is established. Mr Thaksin, founder of mobile operators Advanced Information Services, handed control of the company to his 21-year-old son just before last year´s election. "If they stop the enforcement of the revenue agreement, the state will lose," said Senator Thongpai Thongpao, an independent who has criticised the government´s framework for the switch. "Those who will benefit are the companies. The consumers will not benefit directly." He added: "From a political point of view, if the government tries to push for this, I think it´s a big problem. The people will consider that the government is on the side of the companies." Telephone penetration in Thailand lags far behind that of regional rivals, mostly because of the revenue-sharing burdens, and other restrictions imposed on private operators by state telecoms companies, which control everything from pricing, network expansion and the introduction of value-added services. Thai policymakers generally agree on the need to end the concession agreements - which differ from operator to operator - to provide a foundation for fair competition and greater public access to telecoms services. "To put phones in people´s hands, you need prices to drop even further, and one of the big barriers is revenue-sharing," said Amarit Sukhanvanij, a telecoms industry analyst with Merrill Lynch in Hong Kong. Since the conversion is squarely on the policy agenda, charting out a framework for the switch is also a prerequisite for privatising the state-owned Telephone Organisation of Thailand and the Communications Authority of Thailand, which the government has set as a priority for this year. Mr Thaksin´s government commissioned the plan from the Intellectual Property Institute at Chulalongkorn University in Bangkok, which concluded that private operators should be released from concession fees after 2006. Critics have dubbed the new plan a giveaway, but industry analysts caution that it may not be as generous as it seems. Along with ending revenue-shares, the framework also says that private companies will have to buy or lease back their networks - which they built then transferred to the state agencies - at "fair value", a point where state agencies could put on the squeeze. The great likelihood, however, is that the whole process would get bogged down, despite the government´s desire to push ahead with the share sales. Mr Thaksin may well calculate that the political price of pushing ahead would just be too high, and that the sensitive issue is best left to the industry regulator. (Financial Times, January 15, 2002,,summary by Sherldine Tomlinson).
TWO THAI JOURNALISTS KILLED FOR THEIR WORK The New York-based Committee for the Protection of Journalists reported that Withayuth Sangsopit, freelance radio journalist and commentator, and Kaset Puengpak, stringer for the Thai Rath daily newspaper, were amongst the thirty seven journalists killed last year as a direct result of their work. Courageous reporters have been murdered with impunity while uncovering official corruption and crime worldwide. Nahar Ali of Bangladesh, Feng Zhaoxia of China, Moolchand Yadav of India, and Ureta Roland and Candelario Cayona both of the Philippines, were also listed within the number killed. Other home countries for journalists killed include Bolivia, Costa Rica, Georgia, Guatemala, Latvia, Mexico, Paraguay, Ukraine, and Yugoslavia. Eight journalists were killed covering the U.S.-led campaign in Afghanistan, with a ninth dying of wounds sustained there two years ago. (Bangkok Post, Jan. 5, 2002, summary by Marg Reynolds).
MINISTER SUPPORTS RAILWAY BOARD DECISION TO SACK GOVERNOR The transport minister Wan Muhammad Nor Matha has supported the decision of the Railway board to sack the Railway of Thailand Governor, Saravut Thammasiri. The board’s decision follows several incidents of oversight of corruption by the governor. In one instance, the board had asked him to review the construction of a toilet at Makkasan station, which had costed 1.7 mn baht, but had received no inputs from him even after 3 months of instituting the enquiries. The sacking decision awaits cabinet approval. (Financial Times (Asia Intelligence Wire) January 3, 2002, summary by Aruna Balakrishnan).
TWO SENIOR EXECUTIVES RULED CORRUPT. ALTERED MEDIAN PRICE OF LANDFILL CONTRACT. Two senior executives of the New Bangkok International Airport Co were found guilty of corruption in connection with a landfill project by the National Counter Corruption Commission, their guilt being the boosting of the median bidding price of the contract, resulting in board members awarding the contract to Italian-Thai Development Co, the lowest bidder of the six contractors vying for the project. (Financial Times, December 28, 2001, summary by Monica Voitovici).
SCHOOL DIRECTOR AND ASSISTANT ARRESTED FOR ACCEPTING BRIBE TO AWARD DRINKING WATER LICENSE The director of Satri Nonthaburi School, Mr. Pin Suwanna, and his assistant Somneuk Dokbua were arrested on Wednesday by the police from the Crime Suppression Division. The National Counter Corruption Commission will investigate the charges of demanding 30,000 baht in cash from the salesman of a company in return for allowing the firm to supply bottled drinking water at the school. The salesman reported the cash demand to the police and the graft agency, further to which a graft fighter went incognito to the school and handed over the cash and obtained the licence for selling the drinking water at the school premises. On arrest the police found 21,000 baht in cash on Mr. Pin and another 30,000 baht in his jacket at office. The education office chief stated that Mr. Pin was already under investigation on allegations from parents of demand for donations towards building funds. (Bangkok Post, December 14, 2001, summary by Aruna Balakrishnan).
LACK OF EVIDENCE CLEARS FORMER FINANCE OFFICIAL OF BRIBERY CHARGES. Public prosecutor, Suvej Chitmahawong has dismissed the charges against former deputy permanent secretary of finance, Niphat Bhukkanasut, who was accused by the police of having accepted 30 million baht in bribes from Sun Estate Co in return for awarding them a shopping complex contract. The two other suspects in this case included the chairman of Sun Estate Co, Nam Mahathitirat and another person Uthai Sakulkhru. According to the prosecutor, Mr. Nam had admitted that he paid 30 million Baht to Mr. Niphat, but it was for the purchase of old King Rama V coins for the top executives of his company. Prosecutor Suvej has said that there was no evidence to prove that the 30 million baht in Mr. Niphat’s account was bribe money and he believed that bribe, if any, would most likely have been paid in cash of which there was no trace either. Additionally, he has said that since this whole transaction took place 6 months before the contract was finally awarded with the approval of Mr. Niphat’s superiors, it is highly unlikely that such a large sum would have been paid so much ahead in advance without the guarantee of getting the contract. He has also said that the origin of the 30 million baht in Mr. Niphat’s account could not be traced by revenue officials since the sale of collectors coins was non- taxable and hence he believed nothing was amiss with the transaction. The police have also rested the case following the prosecutor’s decision, and Mr. Niphat, according to certain sources has been reinstated at his job. (Bangkok Post, November 13, 2001, summary by Aruna Balakrishnan). FLIGHT FROM JUSTICE BY A POWERFUL POLITICIAN’S SON
EMBARRASSES THE PRIME MINISTER. The inability of police to nab Duangchalerm
Yoobamrung, son of Chalerm Yoobamrung, a parliamentary member in Prime
Minister Thanksin’s ruling coalition, and the main accused in the murder of
an award-winning police officer in a night club brawl, has sparked off
massive public protest. The public belief is that the army and powerful
political connections allowed the accused to be shielded and to escape from
justice, in what is seen as a continuation in the precedence of such
convenient escape from justice by the rich and powerful across countries like
Indonesia and India. The accused, Duangchalerm and his two brothers have been
associated with 12 other cases of assault but never prosecuted because
witnesses had apparently been threatened off from testifying. Public outcry
at the obvious difference in the treatment meted out to them in terms of
harassment for minor infractions, whilst the rich and powerful seem to be able
to get away with blatant murder, has cast an unflattering spotlight on the
Thai Judicial system and has resulted in a big embarrassment for the Prime
Minister. (Financial Times, November 6, 2001, summary by Aruna Balakrishnan).
ADB ASSAILED OVER THAI WASTEWATER PROJECT. The government of Thailand refused to allow an independent inspection team to review the environmental and economic worth of a controversial foreign-funded wastewater treatment plant. Civil society groups, campaigning on behalf of some 60,000 indigenous people villagers in the project area of Klong Dan and Song Klong, insist that the project is corruption plagued. More specifically, the Samut Prakarn Wastewater Treatment Project is a project backed by the Thai government and the Asian Development Bank (ADB). The ADB is providing $230 million with the rest $520 being raised by the Thai government. ADB and the Thai government have rejected the claims by activists. However ADB took last year the initiative to dispatch an independent panel to verify the complaints and to document whether the ADB's management, the bank's branch that runs the project, complied with its own policies. The negative response to the inspection mission by the Thai government is seen as a blow to local efforts to stop or re-design the project. Campaigners agree that the ADB is at risk to lose its reputation if it did not manage to convince the Thai government to allow the inspection. (Source: Asia Times, October 30, 2001, summary by Pavlidis George). MONEY LAUNDERING COMMISSION
WITHOLDS B28m BELONGING TO A SENIOR AGRICULTURAL OFFICER BEING PROBED. The
commission has started an investigation into the possession of B28m by a
senior Agricultural Officer working in a saving co-operative, by demanding
for a declaration of the source of such a big income from her. She is said to
have held the money in four separate accounts at the savings co-operative of
the Agricultural ministry. Anonymous sources have alleged that the money was
ostensibly diverted to this bureaucrat and close aide, by the former
director- general of the department who was implicated in a corruption case
involving the procurement and distribution of vegetable seeds to farmers. The
exact links and details are yet to be established and the Agriculture
Minister has agreed to co-operate completely with the investigative agencies
to sort out the issue.(Bangkok Post, October 23, 2001, summary by Aruna
Balakrishnan).
AGRICULTURAL OFFICER PROBED FOR SOURCE OF B28M IN HER ACCOUNTS. The Money Laundering Commission of Thailand has withheld 28 million baht belonging to a senior Agricultural Extension Department official. The money was held in four separate accounts at the savings co-operative of the Agriculture Ministry. According to Commission secretary-general, Peeraphan Premphuti, the withheld money is suspected of having been illegally obtained in a corruption case. ``I have asked her to declare the source of the money because it is suspicious that an ordinary C8 official could possess such a large amount of money,'' he said. ``We will seize the money if the suspect fails to contact us in 90 days,'' added the secretary-general. (Source: Bangkok Post, October 23, 2001, summary by Pavlidis George).
PEOPLE’S NETWORK AGAINST CORRUPTION SEEKS CHANGES IN THE NATIONAL COUNTER CORRUPTION COMMISSION LAW. In a seminar conducted by the People’s Network Against Corruption, attended by over 100 agencies and organizations devoted to fighting corruption, changes in 10 articles of the legislation has been sought to make the law more efficient. The changes demanded in these particular articles include increasing the 2 year statute of limitations up to 20 years in cases involving public officials who have not declared their assets intentionally, and making heirs of offenders liable to asset seizure. The group intends to collect 2000 signatures in support of the amendment from each province.(The Nation, October 16, 2001, summary by Aruna Balakrishnan).)
PANEL FINDS JIRAYU GUILTY OF ABUSING HIS AUTHORITY. Jirayu
Charatsathian was an adviser to former public health
deputy minister Theerawat Siriwannasarn. Jirayu
Charatsathian was found guilty of being involved in a 1.4-billion-baht
medical supplies scam. The panel of the Thai graft commission
(National Counter Corruption Commission) agreed unanimously that Mr
Jirayu had violated Article 148 and Article 157 of the Criminal Code by
"coaxing
or forcing others to act for the benefit of himself or other people".
The commission will send its report to the Attorney General for legal
action against Jirayu Charatsathian and Narongsak Hengchaisri (personal
adviser to former public health minister Rakkiat Sukthana). Offenders
of Article 148 face a jail term of 5 to 20 years or a 2,000 to 40,000
baht fine. Offenders of Article 157 face a jail term of 1 to 10 years
or
a fine of 2,000 to 20,000 baht. (Source: Bangkok Post, October 10, 2001,
summary
by Pavlidis George). SENIOR OFFICIALS AND POLITICIANS
INVOLVED IN A MULTI MILLION BAHT SCAM GET AWAY SCOT FREE. At a seminar to
mark the third anniversary of the scam, academics and NGOs stated that
several politicians and senior officials who had spearheaded the scam had
managed to escape punishment despite the presence of sufficient evidence, due
to weak anti- graft tools of the State. The meeting conducted by the Anti-
Corruption Network and the Political Economy and Social Development Studies
Centre of Chulalongkorn University, presented all the details. The scandal at
the Public Health Ministry to the tune of 1.4 billion baht was perpetrated by
ministry officials asking Government Pharmaceutical Organisation to procure
drugs at very high prices so that the budgets could be diverted into their
personal kitty as commissions, according to witnesses. However, though some
lower and middle level staff were sacked, nobody was ‘found guilty’ and hence
politicians and private pharma firms were getting away with several such
scams across several provinces due to protective backing by powerful
politicians. The Rural Pharmacist’s Club stated details of corruption in 34
provinces and sufficient evidence to punish officials in about 17 provinces.
They concluded that the State was not serious about punishing corrupt
people.(Bangkok Post, September 26, 2001, summary by Aruna Balakrishnan).
11 JUDGES SAY ARTICLE 295 APPLIES.
Article 295 of the Constitution of Thailand empowers the National Counter
Corruption Commission to investigate officials suspected of falsely declaring
their assets and debts. In the case of Thaksin Shinawatra's hidden assets,
there will be a common verdict stating that 11 of the 15 judges agree Article
295 is applicable to the Prime Minister. However, contrary to the seven
judges who found Mr Thaksin guilty, the majority of the court (eight judges)
found he did not intend to conceal his wealth. All opinions will be issued
with the verdict. (Source: Bangkok Post, August 8, 2001, summary by Pavlidis
George).
GRAFT BODY HAS RIGHT TO SEEK AN INQUIRY; PETITION COULD BE FILED WITH STATE. Members of the Senate are insisting that the graft commission has the right to explore the prospect of judicial misconduct in the prime minister’s asset concealment case. Senate speaker Manoonkrit said that the National Counter Corruption Commission, or harmed parties, had the constitutional right to petition with the Senate to investigate the Constitutional Court judges and impeaches those found to have committed impropriety in office. (Bankok Post, August 6, 2001, summary by Kelli Johnston).
THAKSIN AWAITS JUDGMENT. Thaksin Shinawatra, the Thai
prime minister, a telecommunications-tycoon with a $1bn
personal fortune, said that the single gift
he desired for his 52nd birthday was to keep his job as the country's
leader.
Thailand's National Counter Corruption Commission had indicted Mr
Thaksin
for omitting millions of shares held in the name of his domestic servants
from an assets declaration he filed in 1997. Thailand's Constitutional
Court is expected to rule this month on whether Mr Thaksin should
be banned from politics for hiding the full extent of his wealth.
This
unprecedented case constitutes a tough test for the court, which was
created
just four years ago. Supporters of Thailand's political reform process
believe that convicting Mr Thaksin would be a big step forward for
Thailand's
maturing democracy. "It will be a triumph of the rule of law,"
said
Somjai Phagaphasvivat, a professor of political science at Thammasat
University.
"The law is sacred. Even the Prime Minister is not beyond the
law.
It will signal a new era of political reform, not only for Thailand but
for
the whole of Asia." On the other hand, there are fears that the majority
of
Thais will find it tough to accept a judgment that removed from power a
leader
who they see as the only man capable of steering Thailand through the
deteriorating
economic environment. "Many people see the Prime Minister as a
fresh
face, determined to come to grips with economic, social and political
problems
and they would be sad to see him deposed," said Giles Ungpakorn, a
political
science professor at Chulalongkorn University. (Source: The Financial
Times, August 1, 2001, summary by Pavlidis Geor ge). CAN
THAKSIN SUCCEED IN FIGHT AGAINST CONTRACTOR CORRUPTION? Eradication of
corruption has always received top priority from Prime Minister Thaksin
Shinawatra. Thaksin met with government construction contractors, and told
them to refrain from colluding with one another when tendering bids for
government projects. He was given evidence showing that a contractor
for a government construction project, who proposed the lowest bide price of
1.7 billion baht, was denied the contract and the work was awarded to another
company which quoted a price of 2.9 billion bath. Thaksin said only 60
percent of the bid price went into the actual construction project, while the
other 40 percent found the pockets of corrupt individuals in political
positions. Prime Minister Thaksin must prove that he is sincere in
eradicating construction corruption in the government’s contracting
process and not simply paying lip service to this serious matter.
(Business Day (THAILAND), July 10, 2001, summary by Barbara Gray).
FILLING COUNTER CORRUPTION COMMISSION VACANCY A HOT POTATO. A senate panel will check the qualifications of the two finalists nominated by a panel headed by Prasert Nasakul, Constitutional Court Chairman, for the position at the National Counter Corruption Commission that was vacated by Khunying Preeya Kasemsan na Ayutthaya late last year. Preecha Chavalitthamrong, deputy finance permanent secretary, is a close friend of Chuan Leekpai, former Prime Minister, and some have doubts as to his impartiality in handling corruption cases against Democrats. The other candidate, Pinit Arayasiri, is parliament general-secretary. (Bangkok Post, May 25, 2001, summary by Marg Reynolds).
FRAUD BITES HARD INTO ASIAN SALES Charnchai Charvastr, President of the Thai Institute of Directors, believes the estimated 10 percent cost of annual sales that is lost to corporate fraud could be prevented by re-examining corporate governance and strengthening internal controls through education. The initiatives should include transparency and efficiency within audit committees, disclosure mechanisms, roles of company management and boards, director responsibilities, legal liabilities, and lessons of corporate failures and successes drawn from examples both locally and abroad. (Bangkok Post, June 4, 2001, summary by Marg Reynolds).
SEVEN PARLIAMENT MEMBERS FORCED OUT AFTER CORRUPTION PROBES. The Electoral Commission has removed seven MPs from Parliament after they were found guilty of graft charges, details of which are not yet specified. Some observers believe vote-buying was rife in the general election and a by-election will be held, in which the MPs may run again. The MPs are from the Thai Rak Thai Party, the New Aspiration Party, the Chart Pattana Party, the Chart Thai Party, and the opposition Democrat Party. (Herald Sun (AFP), May 21, 2001, summary by Marg Reynolds).
BANGKOK. Ministry
to Decide Penalties for Scam. The fate of Government Pharamaceutical
Organisation's (GPO) administrators and provincial health chiefs of 34
provinces will be decided by the sub-committee on civil service. The GPO
board of directors decided that its administrators should be held responsible
for the expensive purchases made by state hospitals via the
organization. (http://www.bangkopost.com,
INQUIRY FINDS COMMISSION SELECTION WAS CORRUPT A twenty-one member Senate Committee, chaired by Kaewsan Atipho, is investigating allegations of nepotism and unfair and untransparent selection processing in the recent membership selections for the National Telecommunications Commission. The selection committee urged certain candidates to apply and gave them high scores. The inclusion of representatives from professional groups such as telecommunications, law, social, and security, was legally required, however twenty-five telecoms-related institutes were not invited to participate as ‘telecommunications’ was not in their title. (Bangkok Post, May 1, 2001, summary by Marg Reynolds).
COUNTER CORRUPTION COMMISSION SAYS NOMINEE GUILTY OF CORRUPTION Weerapol Duangsoongnoen, nominee for head of the Public Relations Department and Choosak Rongsawat, head of the Mass Communication and Information Center, have been found guilty by the National Counter Corruption Commission of disciplinary violations, corruption, malfeasance, and forgery in connection with bidding procedures for a computer procurement project. Thaksin Shinawatra, Prime Minister, believes it was more likely a procedural mistake than corruption and defended the cabinet’s approval of Weerapol’s nomination. (Bangkok Post, May 2, 2001, summary by Marg Reynolds).
SYMPATHIZER CALLS OFF AMNESTY CAMPAIGN FOR PRIME MINISTER Thaksin Shinawatra, Prime Minister, recently requested Veera Musikaphonge, deputy leader of the New Aspiration Party in Thaksin’s ruling coalition, stop his campaign to gather written support of 500,000 people in support of amnesty for the prime minister. At least 50,000 signatures are required before amendments to laws can be introduced to Parliament. If found guilty of concealing his wealth, Thaksin faces dismissal and a ban from holding public office for five years. (Yahoo News (AP), May 1, 2001, summary by Marg Reynolds).
CHARGES OF CORRUPTION TEST POLITICAL STABILITY Prosecutors in the Constitutional Court have leveled the charges of stock manipulation and tax evasion to the original charge of non-declaration of assets against Thaksin Shinawatra, Prime Minister. If found guilty, he and his entire cabinet would be required to resign and be barred from office for five years. Analysts are concerned that the legal battle that lies ahead against the popular and powerful prime minister will exact a high cost for the nation – weaken its government, lower its morale, and discourage foreign investors. Mr. Thaksin recently stated during a television address that the country should focus on national and government problems – namely, an export slowdown, industrial overcapacity, a real estate slump, a banking crisis, a collapse of share prices, difficulties in the agricultural sector, unemployment, and a wave of drug addiction – rather than the distractions of a political upheaval. (International Herald Tribune, Apr 11, 2001, summary by Marg Reynolds).
GRAFT COMMISSION DENOUNCES 11 IN 2.9 MILLION BAHT ROAD CONSTRUCTION BRIBERY CASE Opas Arunin, Chairman of the National Counter Corruption Commission, has recommended criminal action be taken against members of the Prachuap Khiri Kan provincial administrative organization for receiving a bribe of 2.9 million baht for bid awards in the construction of the Nong Khong-si Nakhon and the Phetkasem-Wat Sam Roi Yod roads. Included amongst those charged are: Pramual Pongthawaradet, PAO Chairman; Songkiat Lim-arunrak, PAO Deputy Chairman; and PAO members Thirawat Tengprasert, Montri Panoynond, Suchon Inthasem, Yuthana Phasuk, Charin Kanchanarat, Boonlert Boonchuay, Pramote Tangsuiyang, Chainarong Chuawongkul, and Saiyud Namklan. If found guilty, Montri Panoynond, a Democrat MP for Prachuap Khiri Khan, could lose parliamentary status. (Bangkok Post, Apr 14, 2001, summary by Marg Reynolds).
CABINET WEALTH DISCLOSED TO ANTI-CORRUPTION COMMISSION TOTALS HALF BILLION DOLLARS Senior members of the government have recently declared assets in the amount of half a billion dollars, including family members’ wealth, to the anti-corruption commission. Thaksin Shinawatra, Prime Minister, has declared his wife and children are now worth more than $200 million; while his declared assets are $12 million, a tenth of those he declared three years ago. He is countering allegations in the constitutional court that he hid assets from tax authorities by transferring them to servants’ names. (BBC News, Apr 12, 2001, summary by Marg Reynolds).
REPORT HAILS SUCCESS OF GRAFT MEASURES The National Counter Corruption Commission has submitted its report of public officials who have submitted false assets declarations. Included in the report are: Maj. Gen. Sanan Kachornprasart, former Democrat party Secretary General; Anant Sawatananon and Mahusen Masuyee, from the Prime Minister’s Secretariat; Chatchai Sumetchotemetha, former adviser to the Prime Minister’s office; Kosol Srisung, former adviser to the Education Minister; Sukhum Cherdchuen, former senator; Jirayu Charatsathien, former adviser to the Deputy Health Minister; Thaksin Shinawatra, Prime Minister; Prayut Mahakitsiri, MP of the Thai Rak Thai party; Sumet Upsatien, former municipal councillor; Kowit Prawanpruek, former secretary general of the Private Education Commission; and Sirin Nimmanahaeminda, former president of the Krung Thai Bank. (Bangkok Post, Apr 5, 2001, summary by Marg Reynolds).
THAI PRIME MINISTER’S LAWYER ON THE ATTACK Suthee Damnuedee, defense lawyer for Prime Minister Thaksin Shinawatra, accused the National Counter Corruption Commission of bias in passing judgment on some members’ links with the previous Democrat Party government. The constitutional court must now decide to uphold the indictment which states the Prime Minister failed to declare Bt 2.3 billion ($51 million) of shares held in the names of servants. (FT, Apr 5, 2001, summary by Marg Reynolds).
PRIME MINISTER ACCUSED OF TRYING TO HIDE HIS ASSETS Thaksin Shinawatra, Prime Minister, has been accused in a landmark constitutional court case of hiding more than $200 million of assets. He came to power after the National Counter Corruption Commission found him guilty of concealing his true wealth, and could be banned from politics for five years if the allegations are upheld. (AOL News (ABC), Apr 3, 2001, summary by Marg Reynolds).
ANTI-CORRUPTION LAWS TO EXTEND REPORTING TO INCLUDE THE WEALTH GIVEN TO LOVERS, MISTRESSES Purachai Plumsombun, Interior Minister, stated the government plans to extend anti-corruption laws to include wealth given to mistresses and lovers of elected officials, in which the officials would also have to declare the wealth of unmarried partners. The law would include everyone in government and the declarations would be open to public scrutiny. (Yahoo News (Reuters), Apr 3, 2001, summary by Marg Reynolds).
GROUP OF YOUNG SENATORS RAISES HOPES FOR REFORM Chirmsak Pinthong, senator and former television commentator, is one of a group of 40 independent reformers known locally as the Young Turks, and has recently stated power needs to be equalized and redistributed. The group has flagged issues and sources of corruption and plans to use moral force and principle rather than money and numbers in the Senate’s role for political reform. Chirmsak has announced that allegations have been lodged against Senate Communications Committee Advisor, Apipol Kongehanakul for demanding 300 million baht ($7 million) in kickbacks, and the Senatorial group will also monitor the ruling made by the constitutional court on Thaksin Shinawatra’s concealment of assets from formal disclosure. Sombat Thamrongphanyawong, a dean at the National Institute of Development Administration stated public force and opinion has a big influence on the decision-making process and now must be yielded by the Senators. (Far Eastern Economic Review, Mar. 29, 2001, summary by Marg Reynolds).
FIGHT OVER LATE ‘CORRUPTION BUSTING’ RULER’S WEALTH RAISES QUESTIONS: WHERE DID IT COME FROM? The $140 million estate of General Sunthorn Kongsompong, former military leader, is being investigated as the result of a court battle between his wife and his mistress. His former chief of staff stated he only had $163,000 when he died in 1999; however, Pibhop Dhongchai, chairman of the activist group, Campaign for Popular Democracy, believes this case will determine the government’s commitment to corruption reform in the government and in business. Prime Minister Thaksin Shinawatra’s government and the Finance Ministry have both been reluctant to investigate his wealth or if he owed income tax. Pro-democracy activists are calling for other coup leaders from the 1991 toppling of Chatichai Choonhavan’s government be investigated, together with former members of Choonhavan’s government itself. (AOL News (AP), Mar. 25, 2001, summary by Marg Reynolds).
FINANCE MINISTER CRITICIZES FAILURE OF CUSTOMS DEPARTMENT TO REDUCE CORRUPTION Somkid Jatusripitak, Finance Minister, criticized the electronic data initiatives of the Customs Department as the Department is one of the country’s most corrupt state agencies. Some 53% of imports and 66% of exports are handled by the EDI system. The remainder are handled manually - wherein lies the big problem of losses from import smuggling and fraud in value-added tax refunds based on fake shipping documents. (Bangkok Post, Mar. 24, 2001, summary by Marg Reynolds). NEWSPAPER
EDITOR’S PERSISTENCE UNCOVERS WRONGDOING Prasong Lertratanawisute, editor of
the business newspaper, Prachachart, has encouraged younger reporters to
train themselves with taxation and electoral laws and to dig into
irregularities from clues available in the public domain. Prasong’s investigative journalism has led
to the conviction by the National Counter-Corruption Commission of Sanan
Kachornprassart, Democratic deputy prime minister; the indictment of Thaksin
Shinawatra, Thai Rak Thai party leader, for concealing his wealth; a forgery
fraud by senior monks and associates; and a loan scandal at the Bangkok Bank
of Commerce. His work is praised by
Nattaya Chetchotiros, Bangkok Post news editor, as Prasong's investigations
of politicians and businessmen are tireless. (Far Eastern Economic Review, Mar. 1, 2001, summary by Marg Reynolds). THAI
PREMIER SUBMITS CASE DEFENSE
Thaksin Shinawatra, Prime Minister, leader of the Thai Rak Thai Party,
and telecommunications tycoon has been indicted by the National Counter
Corruption Commission of concealing assets by transferring shares to his
domestic servants. Thaksin may be
barred from public office for five years for violating the mandatory asset
declaration law, but is confident of his defense. (Yahoo News, AP, Mar.
1, 2001, summary by Marg Reynolds). CONTRA
CORRUPTION EFFORT GROWING.Grossly corrupt politicians and bsuinessmen may
have cost $52 billion in the country’s 1997 economic crisis, and Transparency
International’ s Corruption Perception Index indicates graft has increased
since this time. Krikkiat
Pipatseritham, official of the National Counter-Corruption Commission, felt
corruption was devastating the society of his country. The NCCC has found Thaksin Shinawatra
guilty of hiding assets. (AOL News,
AP, Jan. 2, 2001, summary by Marg Reynolds). ANTI-CORRUPTION
COMMISSIONER RESIGNS UNDER CLOUD. Preeya Kasernsant, a Commissioner of the
newly formed National Counter-Corruption Commission, has resigned after
admitting violation of the Commission’s financial disclosure rules. The Commission was created to attempt
reform of the money-driven political and electoral system, and it announced
that Thaksin Shinawatra, leading candidate for Prime Minister, had failed to
disclose assets. The candidate’s
chances on appeal could be boosted with the resignation of Preeya Kasernsant,
and there is the possibility that full-disclosure rules may have been broken
by other commissioners. (NYT, Dec.
28, 2000, summary by Marg Reynolds). ANTI-CORRUPTION
COMMISSIONER RESIGNS.Three National Counter-Corruption Commission board
members have been charged in violation of conflict of interest
regulations. This may cause the
Commission ’s indictment decisions to be appealed, as in the recent cases of
Sanan Kachornprasart, former interior minister, and Thaksin Shinawatra,
political front runner. (ABC On
Line, Dec. 28, 2000, summary by Marg Reynolds). PRIME
MINISTER FRONT-RUNNER RULED GUILTY. An anti-corruption panel has accused
Thaksin Shinawatra, telecommunications tycoon and leading contender for prime
minister, of financial wrongdoing involving transfer of shares worth millions
of dollars to his domestic employees. If found guilty of this charge, the
Constitutional Court could bar him from office for five years. He was found guilty of concealing assets
and tax evasion in 1997. The National
Counter Corruption Commission was formed to combat graft by investigating the
assets of politicians. (Yahoo News, AP, Dec. 26, 2000, summary by
Marg Reynolds). ORGANIZED
CRIME TAKES ROOT IN BANGKOK
Khachadpai Buruspatana, head of the National Security Council said
global organized crime syndicates use Bangkok to transport drugs, people and
arms to other countries, counterfeit money and documents, gambling, and set
up international prostitution rings.
Loose visa policies, huge numbers of tourists, impoverished potential
local recruits and geographical location are all assets to crime syndicates
in their choice of base location.
Illegal revenues equal 20 percent of the licit GNP and corruption
amongst authorities, now the third-ranking problem, is expected to increase
as the country’s borders become more porous via overland links to Laos,
Cambodia and Burma. The Council plans
to revamp the visa rules, the legal framework and the anti-money-laundering
laws. In other case, Chotta Rajan,
Indian mob boss, recently escaped from a hospital room guarded by low wage
earning police officers by paying them 25 million baht ($586,000). (Christian Science Monitor, Dec. 27,
2000, summary by Marg Reynolds). JUDGES LINGER OVER DECISION ON SUSPECT GRAFT FIGHTERS. The Constitutional Court of Thailand hasn't yet reached a decision on whether to inquire into the legitimacy of private shareholdings held by Khunying Preeya Kasemsan Na Ayutthaya and Lt-Gen Sawat Orrungrueng, members of National Counter Corruption Commission. These individuals are accused of holding shares and corporate posts while being on the commission, in defiance of the constitution. Mrs. Khunying Preeya has already resigned, protesting her innocence. However, Mr Noppadol has taken leave. Mr. Prasert Nasakul, the president of the court, said that Mr Komane didn't tell the court whether he would resign in the face of the mounting pressure. (Source: The Bangkok Post, February 14, 2001, summary by Pavlidis George). Bangkok, THE PRIME-MINISTER-TO-BE COULD BE RULED OUT. Last year voters in Thailand elected their Senate for the first time. Last Saturday they picked their 500 representatives in the lower house of the National Assembly. Mr. Thaksin Shinawatra and his Thai Rak Thai party have been brought into power by a large margin. Mr. Thaksin is a telecommunications baron who three years ago was indicted by the country's anti-graft agency for failing to fully disclose assets as stipulated by the reformist constitution passed in 1997. If the Constitutional Court upholds his indictment, Mr. Thaksin would be barred from holding political office for five years. Thus, an elected and serving prime minister would possibly be forced to step down. (Source: International Herald Tribune, January 10, 2001, summary by Pavlidis George).
ACTION ON GRAFT-RIDDLED STATE PROJECTS. After allegations of irregularities in state construction projects, the Prime Minister of Thailand, Chuan Leekpai, has instructed the National Counter Corruption Commission to look into all these state projects where there is suspicion of corrupted practices. Professional groups of architects, engineers and contractors have cited, among others, the ongoing airport construction at Nong Ngu Hao and several highway projects. According to the president of the Thai Contractors Association, Charoon Chanchamratsang, there was price collusion among bidders for a passenger terminal project at Nong Ngu Hao; there were irregularities in a 17-billion-baht bypass project of the Highways Department and in the army's 280-million-baht project to build apartments. The premier urged all authorities concerned to help protect the national interest by making the Nong Ngu Hao airport project free of corruption. (Source: Bangkok Post, September 27, 2000, summary by Pavlidis George).
PRIME MINISTER HOPEFUL IN CORRUPTION PROBE. The National Counter Corruption Commission of Thailand is investigating into the affairs of Thaksin Shinawatra, a billionaire telecommunications tycoon and head of the Thai Rak Thai Party (Thais Love Thais). The investigation focuses into share transfers worth millions of dollars, which Mr. Thaksin made to his relatives and personal staff. According to local media reports, the total value of the shares was more than $260m. ON becoming a cabinet minister in the 1990s, Mr. Thaksin allegedly tried to conceal some of his wealth by transferring shares into the names of members of his domestic entourage, including his housekeeper, maid and driver. Ironically, the populist party he founded and leads (Thai Rak Thai) pledges to clean up Thailand's traditionally murky political scene. His party is widely expected to win the largest number of votes in the next parliamentary elections. Mr Thaksin has denied the allegations and accused his political enemies of trying to undermine his chances of becoming Prime Minister. (Source: BBC, September 26, 2000, summary by Pavlidis George).
BANGKOK – Thailand’s attempts to fight corruption suffered a setback today when an official in the new anti-corruption commission resigned after admitting she violated its financial disclosure laws. The resignation comes at a particularly inappropriate time, since the day before the commission had announced that a leading candidate to prime minister had similarly failed to disclose assets. (New York Times, Dec 27, 2000. Summary by Fabian Camacho). Bangkok-Corruption that traditionally surrounds elections in Thailand has reached new levels after tons of egg and fish sauce, intended as bribes had to be destroyed because of the smell. The election has been dogged by allegations of corruption and vote buying. Anti-corruption watchdog groups and university academics predict that up to £500 million will be spent by politicians vying to win this election. Successful candidates consider the outlay to be money well spent. (THE SUNDAY TELEGRAPH, 31DECEMBER 2000, ISSUE 2046 Summary by Shaun Carter).
A close aide of Golden Triangle drug lord Khun Sa has been arrested in Chiang Rai when on the run. Lao Tai has been in the run since 1994 after being charged with the conspiracy to traffick drugs into the U.S. In addition, he has been held responsible for Khun Sa's financial management and investment decisions, including heroin trafficking and logging along the Thai-Myanmar border. Thai police have so far arrested and extradited 13 traffickers to the U.S. and are hunting down 7 more, including the aforementioned Khun Sa. (Channel News Asia, 11 Jan 2001, summary by Lu C. L.). Mr. Thaksin Shinawatra, leader of the Thai Rak Thai party, has
agreed to appear before the anti-graft agency on Dec 8. He will also report to the National Counter Corruption
Commission (NCCC) in the same day to answer the NCCC's queries on his share
transfers. It was discovered that he transferred billion of baht worth of
shares to his close aides and domestic helpers. Mr. Pongpol Adireksarn,
director of the party's election office, said Mr. Thaksin was confident of
clearing his name and will also attend the Dec20 debate of party leaders.
Four party leaders, including Prime Minister Chuan Leekpai of the Democrat
Party have agreed to turn up. (Bangkok Post, 06.12.00, summary be Sandra
Castro). Corporate Governance: Wall Street Journal, Nov. 8, 2000 (Front page sec. C) notes that this country is among the lowest ten in corporate governance by CLSA, Salomon Smith Barney. This means that shareholders do not get equitable treatment and disclosed information can be false and misleading. The laws governing duties of managers, accountants, etc. are inadequate or not enforced properly.
BANGKOK - The current finance minister has been accused by an opposition party of violating financial disclosure laws. Finance Minister Tarrin Nimmanahaeminda allegedly failed to report his 60,000 stocks worth 6 million baht ($140,000) in the company, Coral Reef Cabana, when he was appointed finance minister in 1997. The accusation is the latest in a tit-for-tat political battle between the party in power and the opposition. (AP, Summary by Fabian Camacho, Nov 17, 2000).
The Course of Corruption.
Corruption in Democratisation, Corruption and Economic Development: The Case of Thailand BA thesis by Tomas Larsson Thailand:
Surveys Find Corruption Widespread and Deep-Rooted. At a recent
Civil Service Seminar, one research paper surveyed 4,016 families who
revealed many believe corruption is the third biggest problem in the
country. The National Police Office,
the Interior Ministry and the Customs department are among the top three
corrupt agencies. 10% of family
leaders have paid bribes to civil servants and 3% have paid bribes to ensure
their students have a place in well likes state schools. 13% also said they have paid for
government services, and many businessmen stated that they would be willing
to take a tax increase to end corruption even though they “special fees” are often paid to win bid
for government projects. (Bangkok Post, September 11, 2000, summary by Amanda
Glatzel) BILLIONS
OF BAHT LOST TO CORRUPTION IN CONSTRUCTION PROJECTS The state loses tens of
billions of baht to corruption in construction projects as bribes are paid at
almost every stage of the process, said Mati Tangpanit, president of the Thai
Construction Development Committee. "State projects are estimated at
200-300 billion baht annually. During the economic boom, they amounted to as
much as 600-700 billion baht a year. About 10%
of the sum is lost to corruption, meaning tens of billions of baht
yearly," he said. Mr Mati, also a director of the Architects Council,
cited six factors which enable corruption to take place: - State agencies and
politicians that implement projects; Lenders that may favor some contractors;
The delegation of architects, engineers, supervisors and consultants
responsible for each project; Panels inspecting and accepting finished
projects; Contractors who are ready to buy projects with bribes; and Laws and
regulations that can be misinterpreted to favor any parties. "Bribes
are demanded in almost every step of project implementation, from seeking
approval for a project to a bidding contest and the payment of instalments of
a project price. "The graft occurs not due to any single party but is
the collaboration of all parties concerned," Mr Mati explained. Four
associations of engineers, architects and contractors say they will lift the
lid on corruption next week. The Engineering Institute, the Thai Contractors
Association, the Association of Thai Engineering Consultants, and the
Association of Siamese Architects will hold a seminar on Sept 13-14. Mr Mati
denied the seminar was aimed at attacking any particular construction
company, but at reducing irregularities in state projects. "We will tell
the public how corruption is going on so that people can help check project
implementation. "Although the problem cannot be wiped out, I believe the
seminar will lead to embarrassment that may help reduce the corruption to a
certain extent. The findings from next week´s seminar will be forwarded to
the National Counter Corruption Commission, he said. Bangkok Post, September
6, 2000 http://www.bangkokpost.net Sanan Kachornprasart, powerful interior minister resigned after
national Countrcorruption Commission formed in 1997 revealed that he had
concealed his assets by fabricating a million-dollar loan. (NYT, Mar 30, 2K,
p. A11) Thai Election Rerun Seeks To Clean Up Politics (See Details, Thai Senate Election Vote Count Will Be Slow –Watchdog (See item 5, May 2, 2000 Dow Jones Newswires). New Thai Senate Vote Seems Inevitable Amid Fraud Charges (See item 12, Dow Jones Newswires. May 1, 2000).
CHIANG MAI, unprecedented Senate by-elections to be held Saturday show, as victories of 78 candidates invalidated where commission found evidence of electoral fraud. ( D J Newswires, April 27, 2000). BANGKOK (AP), The commission charged with overseeing that elections for the Thai Senate are free of corruption was reviewing ballot counts Tuesday and investigating allegations of fraud. (D J Newswires, May 2, 2000).
Thailand To Hold Third Senate Vote Due To Ballot Fraud ---Thailand's Election Commission has called a third round of voting in long-running Senate elections after ruling that 12 seats contested in by-elections were won again through fraud, officials said Monday. The worst incidence of cheating was in the country's poor northeast, with three victors in one province alone judged to have broken electoral law, including vote-buying. (DJN, May 15, 2000).
BANGKOK: In the province of Nong Kai, Udorn Thani and Maha Sarakham a fourth round of balloting for Thailand’s first elected senate was to be held after earlier rounds were annulled because of polling fraud. In these provinces vote buying and other election fraud have been extremely conspicuous. The senate election is the first election under a new constitution meant to fight corruption and vote buying in Thai politics. (DJ News, July 8, 2000, summary by Rosado Maritza).
Bangkok. New Thai Political Party Accused of Buying Support - The new but powerful political party in Thailand, Thai Rak Thai, headed by a billionaire tycoon, has admitted that it distributed cash to villages, which it claims is for “development”, but which the ruling party, the Democrats, charges is an attempt to buy votes in the soon to be held elections. The party is also accused of promising more money to the villages if it comes into power, and of offering substantial sums to well known politicians to join the party. (Dow Jones Newswires. July 14, 00. Summary by R. Virkar).
Ministry pushes probe against airports authority (Don Muang scandal) Limousine operator was accused of bribery and his license was abruptly terminated in February but reinstated in March 2000. But, he has accused executives of the Airports Authority of Thailand. He gave a monthly bribe of at least 100,000 baht to AAT executives and a Mercedes Benz E 220 as a gift to an executive's son to facilitate its business at Don Muang airport. The probe credit goes to a team headed by Aviation Department director-general Sawat Sitthiwong. (Bangkok Post, 29.8.00, http://www.bangkokpost.net/today/290800_News09.html, summary by H. Vinod).
The Index of Economic Freedom (by Driscoll-Holmes-Kirkpatrick) for 2001 places Thailand in the “Mostly Free” category with a rank of 28 (Ranks range from 1 for Hong Kong to 155 for North Korea, Wall Street Journal, Nov. 1, 2000). H. D. Vinod’s trimmed correlation analysis indicates that countries free from economic regulation are less corrupt. After allowing for some exceptions by 20% trimming, the correlation is near 0.9. |
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Design:
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Copyright:
Hrishikesh D. Vinod 2000 |
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