Ex- poll commissioner Somchai discloses why he rejected Yingluck government’s BAAC’s 20Bn baht loan

 

 

A former member of Thailand’s Election Commission, Mr. Somchai Srisutthiyakorn, today (Saturday) posted on his Facebook part of a memoir he wrote in the EC journal about an incident five years ago. It relates to when the government of Prime Minister Yingluck Shinawatra was seeking approval from the EC to borrow about 20 billion baht, from the state-run Bank of Agriculture and Agricultural Cooperatives (BAAC), to pay rice farmers for their crops bought by the government under the rice pledging scheme.

 

Somchai wrote that, on January 21, 2014, then Deputy Prime Minister Kittirat na Ranong, accompanied by the directors-general of Internal Trade and Foreign Trade departments, held talks with the EC to discuss the government’s plan to secure a loan from the BAAC.

 

At the time, the government told the media that it was negotiating with the EC to seek approval for the loan which, according to Somchai, put the EC in a dilemma because granting approval would put the EC in the wrong while not approving it would result in the EC being blamed for preventing farmers from getting paid. During the one-hour meeting, Mr. Kittirat assured that the government would pay back the loan in monthly instalments after it received money from the G-to-G rice deal with China.

 

Full story: https://www.thaipbsworld.com/ex-poll-commissioner-somchai-discloses-why-he-rejected-yingluck-governments-baacs-20bn-baht-loan/

 

-- © Copyright Thai PBS 2019-09-08

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3 hours ago, rooster59 said:

when the government of Prime Minister Yingluck Shinawatra was seeking approval from the EC to borrow about 20 billion baht, from the state-run Bank of Agriculture and Agricultural Cooperatives (BAAC), to pay rice farmers for their crops bought by the government under the rice pledging scheme.

Just a little background as I recall that distinguished Yingluck's failed request for BAAC to issue funds vs. Prayut's successful order for BAAC to issue the same funds.

The Yingluck regime at that time was in "caretaker" status. Parliament had been dissolved and elections were to be scheduled within 60 days on a date agreed by the government and EC.

In a caretaker status the government cannot fund any program that carries financial obligations into the term of the next elected government. Thus, the EC had really no authority to grant Yingluck approval to commit the next government for debt obligations if it were challenged on violating the 2007 Constitution. Furthermore, the BAAC complained that it had inadequate investor capital to fund Yingluck's rice payouts (very debatable) and refused the rice loan.

 

Enter the Prayut junta regime that pledged to immediately pay the rice farmers in full for Yingluck's rice subsidies. With the 2007 Constitution abolished, the junta refusing caretaker status (as it did throughout the March 2019 election) and a junta-appointed NLA, the program was obligated for full funding through issuance of 10-year treasury bonds. BAAC was funded to payout in full Yingluck's rice subsidies without using investor capital. 

 

8 hours ago, Srikcir said:

Just a little background as I recall that distinguished Yingluck's failed request for BAAC to issue funds vs. Prayut's successful order for BAAC to issue the same funds.

The Yingluck regime at that time was in "caretaker" status. Parliament had been dissolved and elections were to be scheduled within 60 days on a date agreed by the government and EC.

In a caretaker status the government cannot fund any program that carries financial obligations into the term of the next elected government. Thus, the EC had really no authority to grant Yingluck approval to commit the next government for debt obligations if it were challenged on violating the 2007 Constitution. Furthermore, the BAAC complained that it had inadequate investor capital to fund Yingluck's rice payouts (very debatable) and refused the rice loan.

 

Enter the Prayut junta regime that pledged to immediately pay the rice farmers in full for Yingluck's rice subsidies. With the 2007 Constitution abolished, the junta refusing caretaker status (as it did throughout the March 2019 election) and a junta-appointed NLA, the program was obligated for full funding through issuance of 10-year treasury bonds. BAAC was funded to payout in full Yingluck's rice subsidies without using investor capital. 

 

 

Just a couple of points. The Yingluck government ran into problems paying farmers slightly before she dissolved parliament (even though she "vowed" the farmers would be paid and that she wouldn't dissolve parliament!). 

 

The finance minister, who said it was ok for finance ministers to lie, said the money borrowed from BAAC would be paid back from the G2G rice deals with China. Was he referring to the ones that proved to be frauds? 

 

PTP told so many lies that they confused themselves!

 

And some posters still maintain they were innocent!

“If the EC had approved the government’s request that day, I would have been fired by virtue of Section 44 of the interim Constitution or might have been one of those imprisoned by the Supreme Court,” wrote Somchai in his memoir.

 

The interim constitution has been made by the Junta after the coup. How did he know in January that there would be an interim constitution?

Stupid question! We all know the answer.