Thai Corruption - It May Be True That We Cannot Teach An Old Dog New Tricks

[webfact]

EDITORIAL

It may be true that we cannot teach an old dog new tricks

By The Nation

Even in the light of recent corruption scandals, it seems that politicians and officials still cannot say no to a bribe

The government must investigate alleged bribery at the Thailand Tobacco Monopoly (TTM) to find the culprits accused of being involved in irregularities in a multi-million-dollar sales contract. The alleged bribery has been exposed by the US Securities and Exchange Commission (SEC).

A thorough and transparent investigation will show that the Abhisit administration does not tolerate corruption. The prime minister has no choice but to live up to his words on this subject and order the investigation without delay. The Thai recipients who are said to have benefited from bribes, allegedly offered by two global tobacco companies, must be uncovered and the entire result of the case be made public.

The US Securities and Exchange Commission has charged the two major tobacco companies - Universal Corporation, and Alliance One International - with violating, among other things, the anti-bribery provisions of the US Foreign Corrupt Practices Act of 1977 (FCPA). According to information released by the US authorities, the companies are alleged to have been involved in a graft scheme with government officials in Thailand to obtain nearly US$30 million in sales contracts to supply tobacco.

According to the SEC, between 2000 and 2004, Universal, in coordination with two of its competitors-Dimon, and Standard Commercial Corporation - paid approximately $800,000 to bribe officials of the state-owned TTM in exchange for securing approximately $11.5 million in sales contracts for its subsidiaries in Brazil and Europe.

As for the charge against Alliance One, the US authorities said that from 2000 to 2004, in a coordinated bribery scheme with Universal, Dimon and Standard, Alliance paid bribes of more than $1.2 million to TTM officials in order to obtain more than $18.3 million in sales contracts. (In May 2005, Dimon and Standard merged to form Alliance One).

Dimon has characterised the payment of alleged bribes to TTM officials as commissions paid to Dimon's agent in Thailand. Similarly, Standard personnel are said to have authorised improper payments to TTM officials and failed to record those payments accurately in Standard's accounting records.

This shameful case has emerged even after a series of Thai-related bribery cases discovered by the US authorities, including the CTX bomb detecting machines for Suvarnabhumi Airport. Now that the US has done its part by taking action against the companies under its own jurisdiction, the Thai authorities must follow up on these cases to prove the country's integrity. The investigation must start quickly. And the government and law enforcement agencies have no excuse not to, as the documents and evidence are already available from the US Justice Department.

Finance Minister Korn Chatikavvanij earlier this week pledged to investigate the case promptly. This is a positive signal. However, action - not just words - will prove whether the minister is serious about tackling corruption, especially corruption that happens right under the nose of the Finance Ministry.

Former prime minister Chuan Leekpai recently warned of the corruption which still pervades all levels of Thai society. Unfortunately, however, politicians and state officials seem unable to help themselves, and will continue to become involved in graft of all kinds. Such people do nothing except further erode the credibility of political and state institutions in the eyes of the public.

A series of recent surveys among Thais shows that the public is fed up with corruption and bribery cases, all of which wreck the competitiveness of Thai businesses and industries at the expense of the country's interest.

Corruption not only adds unnecessary costs at the expense of consumers but also instils the negative mentality, especially among the young, that corruption is acceptable. The ongoing political crisis is also a result of the public's anger against corrupt officials. Thailand will never be reformed unless the corruption issue is seriously tackled and those found guilty are properly held accountable for their actions.

There are so many corruption scandals but few are ever pursued to the final dispensation of justice. Even if they are, the results of the investigations are never made public.

It is imperative that the government proves the validity of every case that is brought to public attention. If an investigation pinpoints any culprit, he or she must be punished as an example. We can no longer allow corrupt politicians and officials to get away with their selfish actions. If, however, an investigation shows that there is no wrongdoing, then the Thai government can gladly show the public that politicians and civil servants are in fact cleaner than the prevailing, widely perceived image.

-- The Nation 2010-08-12

Edited August 12, 2010 by webfact

[Samuian]

Well and then the culprits will be transferred to the Ministry of inactive Posts...

[badgerbailey]

A thorough and transparent investigation will show that the Abhisit administration does not tolerate corruption

I nearly choked on my sticky rice reading this, guess that doesn't include Suthep and most of the other greedy old cronies.

[ChiangMaiFun]

An old Russian saying... 'a fish stinks from the head' - it needs clear, transparent and honest leadership - something which, alas, has been and is lacking here in all areas of society - politics, business and the public sector.

[zzaa09]

An old Russian saying... 'a fish stinks from the head' - it needs clear, transparent and honest leadership - something which, alas, has been and is lacking here in all areas of society - politics, business and the public sector.

.....for how long now? As long as memory serves. This paradigm of contradictory rhetoric will shift as individuals, respectively, dismiss any such lifestyles that promote such shenanigans. The change will come en mass.

[phetaroi]

I think what is going to make corruption so difficult to tame in Thailand is that in Thailand it is virtually endemic. Everyone accepts it and lives by it (notice I didn't say "lives with it").

For example:

Don't we all assume that except in rare situations, that if we get stopped by police for a traffic violation that we won't really get a ticket if we just as them "if we can pay them the fine" instead of going through the formalities?

When I went to immigration with my legal rep for my first visa, I readily accepted his advice that, "We can either sit here for several hours, or for 1000 baht you can be next in line."

Thais readily pay temples/monks for interceding in ways that are not in the Dhamma.

When you go to Central Department Store the price is almost never the price...there's almost always a hidden discount. Wink, wink.

"Making deals" is just the way virtually everything is done in Thailand. At all levels of society. In everyday life. It is a way of living.

[MaiChai]

An old Russian saying... 'a fish stinks from the head' - it needs clear, transparent and honest leadership - something which, alas, has been and is lacking here in all areas of society - politics, business and the public sector.

I believe Abhisit may be the only one not corrupt! I think he means well and trys to do things in a transparent way. However he is only a small part of a greater whole and the greater whole is used to doing things the old corrupt ways. Corruption is so engrained in Thai society that its so difficult to remove it. If you look at Thai history and ways, the way you bettered yourself in life was to align yourself with someone more powerful than you and then give them your full support. This benevolence way worked all the way from the top down and was the way things were done here. The idea of fairness and doing things in a transparent way is a very modern new western concept and these new ideas take time to get rooted into the mindset. Akin to democracy here too; it will be a slow, hard, arduous path to eventually implement democracy, with plenty of diversions on the way.

[selftaopath]

An old Russian saying... 'a fish stinks from the head' - it needs clear, transparent and honest leadership - something which, alas, has been and is lacking here in all areas of society - politics, business and the public sector.

There is an ancient proverb: What you allow you condone.

Without sanctions/punishment there will be little, if any, change. I laughed at the sentence: Prove the country's integrity. LOL Somehow I can not seem to - even remotely - relate integrity to Thailand (LOS= Land of Scams)

Pity b/c (most of ) the Thai people deserve better.

[ChiangMaiFun]

Without sanctions/punishment there will be little, if any, change. I laughed at the sentence: Prove the country's integrity. LOL Somehow I can not seem to - even remotely - relate integrity to Thailand (LOS= Land of Scams)

Pity b/c (most of ) the Thai people deserve better.

I agree - the Thai people deserve better - where is the ONE honest man (or woman) who will stand up? I don't see anybody. If only they would truly believe and practise their religeon - that would be the saving grace... honesty, integrity and an understanding of karma!

[HAL9000]

This is a really bad headline.

Reigning in corruption is part of the cycle of the evolution of nations as they progress along the line from tribal governments to civilized nations.

Thailand can bite the bullet and make it happen just like several other emerging nations have managed to do recently.

[Lancelot]

I don't see the culture of corruption ending in Thailand any time soon. On the other hand, corruption exists in all societies, its just a matter of how prevelant -and accepted- it is.

I liked the response that the US ambassador to Cambodia (circa 2007?) gave when he was asked to commment on the (corruption) problem there. "Yes, the Cambodian government needs to eliminate corruption and make it's financial transactions open and transparent. Corruption also exists in the USA; the difference is that we convict and incarcerate about 600 people annually for committing those acts..."

[Piengrudee]

Small corruption is OK. Like 100 Baht to the police for speeding. Big corruption is a no no.

[nisakiman]

Small corruption is OK. Like 100 Baht to the police for speeding. Big corruption is a no no.

Corruption is corruption is corruption. Makes no difference if it's 100 Baht or a100,000,000 Baht. It's still graft.

[whybother]

Small corruption is OK. Like 100 Baht to the police for speeding. Big corruption is a no no.

So, where do you draw the line.

[Piengrudee]

Small corruption is OK. Like 100 Baht to the police for speeding. Big corruption is a no no.

Corruption is corruption is corruption. Makes no difference if it's 100 Baht or a100,000,000 Baht. It's still graft.

Does you company allow gift from suppliers up to 3,000 Baht during New year? My does. We know that this is corruption, but small scale is OK. Usually we get a fruit basket, or a scarf, or something like that.

[Chang_paarp]

Just like the former TAT governor who has had a stern letter sent to her following the conviction of some of her "friends" for corruption. The authorities will eventually write a stern letter to "suspects" . (see related thread here. http://www.thaivisa.com/forum/topic/390546-jail-for-us-pair-in-thai-film-fest-graft-scandal/ )

Edited August 13, 2010 by Chang_paarp

[phetaroi]

Small corruption is OK. Like 100 Baht to the police for speeding. Big corruption is a no no.

No. Corruption is either right or it is wrong. It is either moral or it is immoral.

You just want to do what all Thais want to do...use corruption to your advantage. Speeding is either legal or illegal. But you are basically saying, if you do it, it's okay. And that's exactly the attitude that means it won't change. Exactly why I said earlier that corruption in Thailand is endemic.

[phetaroi]

Small corruption is OK. Like 100 Baht to the police for speeding. Big corruption is a no no.

Corruption is corruption is corruption. Makes no difference if it's 100 Baht or a100,000,000 Baht. It's still graft.

Does you company allow gift from suppliers up to 3,000 Baht during New year? My does. We know that this is corruption, but small scale is OK. Usually we get a fruit basket, or a scarf, or something like that.

It's not a question of allowing.

It's a question of whether that "gift" is "thanking you" or "pressure to buy from that supplier again". That's a fine line.

For example, in our school system in the States we had three yearbook companies that we could do business with. Each of the three gave us little gifts...desk supplies, calendar books, etc. And then, each and every year I went with the company that offered the best contract for the school. On the other hand, there was a time when there would be money under the table in some school contact awardings even at the local level...and those principals got demoted or fired, because it wasn't about a tiny gift, it was about not accepting the best contract for the school. In Thailand you have that at the corporate and at the government level.

[chantorn]

The super non-corruptible auditor. Good reading http://en.wikipedia.org/wiki/Jaruvan_Maintaka

[surangw]

try and get something done with a gov ( thai) agency or petty offical, and if no tea money is involved everyone gets nervous

[yellow1red1]

Why prosecute? they will do like Leekpai's brother, leave for 6 yrs, charges die, come back, enjoy the money.

They should cut the purse strings these crooks.

[chantorn]

Why prosecute? they will do like Leekpai's brother, leave for 6 yrs, charges die, come back, enjoy the money.

They should cut the purse strings these crooks.

Stop playing the dirty game. Chuan brother is age over 18, made his own decision, and got nothing to do with Chuan.

(unlike Thaksin children & brother in law, who are proxies for Thaksin).

[selftaopath]

Small corruption is OK. Like 100 Baht to the police for speeding. Big corruption is a no no.

Corruption is corruption is corruption. Makes no difference if it's 100 Baht or a100,000,000 Baht. It's still graft.

I agree. I can see another example of corruption diminishing the quality of life for the typical Thai. In our village in Isaan there is virtually NO trash pick up/removal. Residents seem to have one obvious choice. Burn the trash. This pollutes the air and items that did not burn e.g. cans etc remain on the ground adding to the litter problem. One might argue this is not a/b corruption, but I suggest all monies received by corruption is not taxed hence (possibly) not allowing for such basic things as trash removal.

[yellow1red1]

Why prosecute? they will do like Leekpai's brother, leave for 6 yrs, charges die, come back, enjoy the money.

They should cut the purse strings these crooks.

Stop playing the dirty game. Chuan brother is age over 18, made his own decision, and got nothing to do with Chuan.

(unlike Thaksin children & brother in law, who are proxies for Thaksin).

stop put words in mouth game. never said 1 sentence Khun Chuan Leekpai was an accomplice, you infer it more than me,

Do you know how Chuan's sons gets money to splash around? i'm curious is all

Edit; i hope brother never built nice home on family land that all, including Chuan enjoy on Mothers' Day, huh? I hope not, just used all the money for his own fun stuff, over 18 and over 50 , too

Edited August 14, 2010 by yellow1red1

[chantorn]

Why prosecute? they will do like Leekpai's brother, leave for 6 yrs, charges die, come back, enjoy the money.

They should cut the purse strings these crooks.

Stop playing the dirty game. Chuan brother is age over 18, made his own decision, and got nothing to do with Chuan.

(unlike Thaksin children & brother in law, who are proxies for Thaksin).

stop put words in mouth game. never said 1 sentence Khun Chuan Leekpai was an accomplice, you infer it more than me,

Do you know how Chuan's sons gets money to splash around? i'm curious is all

Edit; i hope brother never built nice home on family land that all, including Chuan enjoy on Mothers' Day, huh? I hope not, just used all the money for his own fun stuff, over 18 and over 50 , too

So you are saying that Chuan's son drive 10+ million Baht European's sport car to impress girls in his university rumor it true?

That car itself is worth more that everything that his father declared in total; including house, car, bank saving, and some shares he conveniently forgot to declare (which got him into trouble later)

[robsamui]

Small corruption is OK. Like 100 Baht to the police for speeding. Big corruption is a no no.

And here we have the voice and spirit of Thailand in a nutshell - this is why bribery and corruption will not disappear.

"Small" is a relative concept. One hundred baht is "small" to a shop worker, but to a businessman 100,000 baht is "small", too. And the higher up the ladder of domestic, public and political office you climb, the bigger the amounts you deal with and the larger the concept of a "small bribe" becomes.

Corruption and bribery are either socially acceptable* or they are not - never mind the law. There is no such thing as a legally small bribe, all bribes are illegal. It is evident that Piengrudee is not concerned with the law; he/she (whether Thai or not) responds on a child-like and instinctive level to the concept of this topic - "as long as I personally don't see any harm in this (one hundred/one million baht) then it's OK".

This whole business is not about "the law" - it's about morality. And as long as the Thai nation sees nothing morally disturbing about taking a bribe/gift/concession (however you want to dress it up and whatever form it takes) then there will always be bribery and corruption in Thailand at every level.

*Like one other post has remarked - the difference between the US and Cambodia is that although corruption exists in both countries, the USA prosecutes 600 offenders a year.

R

Edited August 14, 2010 by robsamui

[yellow1red1]

Why prosecute? they will do like Leekpai's brother, leave for 6 yrs, charges die, come back, enjoy the money.

They should cut the purse strings these crooks.

Stop playing the dirty game. Chuan brother is age over 18, made his own decision, and got nothing to do with Chuan.

(unlike Thaksin children & brother in law, who are proxies for Thaksin).

stop put words in mouth game. never said 1 sentence Khun Chuan Leekpai was an accomplice, you infer it more than me,

Do you know how Chuan's sons gets money to splash around? i'm curious is all

Edit; i hope brother never built nice home on family land that all, including Chuan enjoy on Mothers' Day, huh? I hope not, just used all the money for his own fun stuff, over 18 and over 50 , too

So you are saying that Chuan's son drive 10+ million Baht European's sport car to impress girls in his university rumor it true?

That car itself is worth more that everything that his father declared in total; including house, car, bank saving, and some shares he conveniently forgot to declare (which got him into trouble later)

The Topic is bribery, and the few that get investigated just leave the country for a few years until charges are dropped. My Point is the embezzled or pay off money should be cut off. I used Leekpai's brother as an example, only, as he is the most famous one. Leekpai is reported to be one of the least corrupt politicians 'by Thai standards', and did this with all of Cabinet Ministers and his brother doing corrupt. he was black sheep among them.

and yes , if daddy drives an old Volvo how does son in Uni have expensive sports car? I am only curious. did his uncle with embezzled money from Kasikorn Bank bye him a present?

Does he have a manager job at 7/11?

Edit; The police should follow the money in many cases!

Edited August 14, 2010 by yellow1red1

[elkangorito]

Small corruption is OK. Like 100 Baht to the police for speeding. Big corruption is a no no.

And here we have the voice and spirit of Thailand in a nutshell - this is why bribery and corruption will not disappear.

"Small" is a relative concept. One hundred baht is "small" to a shop worker, but to a businessman 100,000 baht is "small", too. And the higher up the ladder of domestic, public and political office you climb, the bigger the amounts you deal with and the larger the concept of a "small bribe" becomes.

Corruption and bribery are either socially acceptable* or they are not - never mind the law. There is no such thing as a legally small bribe, all bribes are illegal. It is evident that Piengrudee is not concerned with the law; he/she (whether Thai or not) responds on a child-like and instinctive level to the concept of this topic - "as long as I personally don't see any harm in this (one hundred/one million baht) then it's OK".

This whole business is not about "the law" - it's about morality. And as long as the Thai nation sees nothing morally disturbing about taking a bribe/gift/concession (however you want to dress it up and whatever form it takes) then there will always be bribery and corruption in Thailand at every level.

*Like one other post has remarked - the difference between the US and Cambodia is that although corruption exists in both countries, the USA prosecutes 600 offenders a year.

R

I totally detest the word 'morality'...it's very pious.

On the other hand, Thailand 'preaches' morality at every school etc etc and clearly, no such thing exists here.

Clearly (& sadly), the Thai version of 'morality' is something very different from the original meaning.

[moe666]

In many countries bribery is a way of life no different than Thailand. I visit Thailand on a regular basis I for one cannot judge this, yes we can get on our hi-horse and declare it is illegal(which it is) but it is the responsibility of the Thai people to resolve this amongst themselves.

[phetaroi]

In many countries bribery is a way of life no different than Thailand. I visit Thailand on a regular basis I for one cannot judge this, yes we can get on our hi-horse and declare it is illegal(which it is) but it is the responsibility of the Thai people to resolve this amongst themselves.

Just because bribery is common in many third world countries, that doesn't make it right, not does it excuse it in Thailand.