Wealthy Families Backing Main Thai Parties

[webfact]

Wealthy families backing main parties

By Wattana Kamchoo,

Thanatpong Kongsai,

Nerisa Nerykhiew,

Prapan Jindalertudomdee

The Nation

With an election expected in the middle of the year, political parties are planning campaigns to woo votes and they need a lot of money to do the job effectively. And we are not talking about vote buying!

All political parties have occasional donors and regular financiers, although larger parties tend to have more of the latter. While many of the larger donors - most of them wealthy families and leading businesses - are proud to be associated with certain political parties, others often prefer their donations to be kept from the public - for fear of possible reprisal if the rival party rises to power.

The ruling Democrat Party - at 65, the country's oldest political party - has attracted many generous donors, particularly over the past two years it has been in power.

Records by the Election Commission show that last year the party received Bt1.38 million in donations from 197 people. Most are regular donors such as Democrat MPs, Cabinet members, executives and ordinary members.

Earlier this month, the party reported to the political party registrar that so far this year it had obtained Bt33.15 million from wealthy families connected to the Democrats, such as the Sophonpanichs (major shareholders of the Bangkok Bank), the Bhirombhakdis (who own the company that makes Singha Beer), the Chaisongkhrams, the Srivikorns, the Lamsams, the Thanadireks and Jirakitis.

There have also been donations of about Bt50 million from many of the country's leading businesses. They include Benchachinda Holding, Yip In Tsoi, Mitr Phol Sugar, and even Advanced Info Service - which was previously owned by the family of fugitive ex-premier Thaksin Shinawatra, the de-facto leader of the Democrats' rival party Pheu Thai.

Some businesses are not just donors; relatives of their owners are in the Democrat Party. These include the Charoen Pokphand Group, Metro Machinery, and Singha Corp. Young members of some of these families are expected to contest the upcoming election as candidates of the main ruling party.

On March 8, the Democrats held a high-profile fundraising event to mark the party's 65 years. The party has yet to report to the Election Commission about the sum raised but early reports put the figure over Bt700 million.

For the Democrats' arch rival Pheu Thai Party - which is expected to fight with the Democrats for the most House seats and the right to form the next government - it has been assured by Thaksin of his full financial backing. However, many wealthy individuals and businesses are ready to give him a hand - although some of them prefer to remain anonymous.

Last year, Pheu Thai got donations of Bt15 million, according to the EC. Among the major donors were wealthy people close to Thaksin, including Virun Tejapaiboon, Ong-art Ua-apinyakul, and Pichai Naripthaphand.

There are only a handful of regular financiers, such as Pongsak Raktapongpaisal and Songkhram Kitlertpairoj, who were key figures in Pheu Thai's "former lives" - Thai Rak Thai and People Power parties, which were both dissolved by court order. Wealthy businessman Paiwong Techanarong, owner of the Bonanza Khao Yai Resort, is also generous to the opposition party - providing his vast resort as the venue for regular gatherings of the pro-Pheu Thai red shirts.

Moreover, there is a group of businesses registered on the stock market, and from the textile and car industries that have contributed financially to Pheu Thai but whose bosses have been reluctant to be identified. They fear being viewed as siding with the party may bring adverse impacts to their businesses. In particular, a car-part business owner reportedly warned Pheu Thai the firm would withdraw support if it was named publicly as a major donor.

Moreover, important hotel businesses like Hyatt Erawan and Siam Intercontinental - both "luckily" escaped arson attacks in last year's riots although they are located near the burnt Central World - have retained strong ties with Pheu Thai.

Meanwhile, the coalition Bhum Jai Thai Party - which is expected to be a deciding factor in the two larger parties' fight for political power - has also attracted much financial backing.

According to EC records, the party got donations of almost Bt10 million last year, compared to as much as Bt35 million in 2009.

Among the generous donors are Chiang Mai Construction - which is owned by the father-in-law of banned politician Newin Chidchob, who is regarded as the party's de-facto leader - Sino-Thai Construction (owned by the family of party leader and Interior Minister Chaovarat Chanweerakul), and King Power.

The party is also close to such businesses as entertainment giant company GMM Grammy and East Water and wealthy figures with political backgrounds such as Somsak Thepsuthin, Sonthaya Khunplume, Sora-at Klinprathum, Suchart Tancharoen, and Teerapol Noprampa - who all are "political comrades" of Newin, who is believed to be pulling strings behind the party.

-- The Nation 2011-03-28

[bangkokeddy]

Moreover, there is a group of businesses registered on the stock market, and from the textile and car industries that have contributed financially to Pheu Thai but whose bosses have been reluctant to be identified. They fear being viewed as siding with the party may bring adverse impacts to their businesses.

What they have to fear? And why?

[webfact]

Democrats receive most donations from taxpayers

By Atthayut Butrsripoom

The Nation

The Democrat Party has received the most donations from taxpayers and allocations from the Political Parties Development Fund. Since a general election is coming up, parties have been busy holding fundraisers to cover campaigning costs, but they also have two other sources of support.

To encourage parties to become institutions with attachment to the people, the Political Parties Act of 2008 allows taxpayers to elect to have Bt100 deducted from the their tax payments for their favourite party.

Statistics show that not many taxpayers have taken this option in the past, even though it costs them nothing. Out of 10 million on the tax roll, only 69,774 exercised their right when this law took effect in 2008.

Their number increased in 2009 but not by much, with only 146,668 taxpayers signing up.

In 2008, 59,768 of the 69,774 taxpayers selected the Democrat Party, giving it Bt5.98 million, while the Pheu Thai Party was way behind with 7,491 naming it, so it received only Bt794,100. The other parties were selected by fewer than 100 taxpayers.

In the following year, the number of taxpayers using this feature more than doubled but most of them, 81,330, selected the Democrats to receive Bt8.13 million in total. The New Politics Party came second with 39,835 taxpayers naming it to receive Bt3.98 million. The Pheu Thai came next with 23,057 taxpayers and Bt2.31 million.

Parties are also supported by the Political Parties Development Fund under the Election Commission through allotments based on four factors - number of MPs, number of proportional votes in the last election and number of party members and party branches.

In the latest year, the Democrats were granted Bt60 million from the development fund while Pheu Thai, Chart Thai Pattana and Bhum Jai Thai were given only some Bt800,000 each because they were new parties set up after their old parties were dissolved.

-- The Nation 2011-03-28

[timekeeper]

Moreover, there is a group of businesses registered on the stock market, and from the textile and car industries that have contributed financially to Pheu Thai but whose bosses have been reluctant to be identified. They fear being viewed as siding with the party may bring adverse impacts to their businesses.

What they have to fear? And why?

do you really need to ask?

[londonthai]

they are afraid to be named as donors to the opposition, because the ruling party will try to squash them with taxes.

happens in many other situations - for example printing companies doing the red's literature are often visited by the officials, controls etc. That's why they are forced now to print in cambodia and bring it back through the green border.

the official figures from the election commission are only tip of an ice berg, and violations are difficult to prove in the courts (like with 300mln to the democrats a few years back).

this happens everywhere in the world, including the oldest democracies, like in the uk

Edited March 28, 2011 by londonthai

[otherstuff1957]

Moreover, there is a group of businesses registered on the stock market, and from the textile and car industries that have contributed financially to Pheu Thai but whose bosses have been reluctant to be identified. They fear being viewed as siding with the party may bring adverse impacts to their businesses.

What they have to fear? And why?

It's quite likely that the Bangkok middle class would boycott a business that was identified as being strongly pro-red.

[bangkokeddy]

Moreover, there is a group of businesses registered on the stock market, and from the textile and car industries that have contributed financially to Pheu Thai but whose bosses have been reluctant to be identified. They fear being viewed as siding with the party may bring adverse impacts to their businesses.

What they have to fear? And why?

It's quite likely that the Bangkok middle class would boycott a business that was identified as being strongly pro-red.

A consumer boycott by Bangkoks middle class is their fear? You mean like the big boycott of Krispy Kreme Doughnuts?

[otherstuff1957]

Moreover, there is a group of businesses registered on the stock market, and from the textile and car industries that have contributed financially to Pheu Thai but whose bosses have been reluctant to be identified. They fear being viewed as siding with the party may bring adverse impacts to their businesses.

What they have to fear? And why?

It's quite likely that the Bangkok middle class would boycott a business that was identified as being strongly pro-red.

A consumer boycott by Bangkoks middle class is their fear? You mean like the big boycott of Krispy Kreme Doughnuts?

Krispy Kreme didn't burn down any buildings in Bangkok.

[bangkokeddy]

Krispy Kreme didn't burn down any buildings in Bangkok.

Of course not, but there is a connection (close affiliations) of the people who own Krispy Kreme and Thaksin/TRT/PTP.

[anon467848]

'Statistics show that not many taxpayers have taken this option in the past, even though it costs them nothing. Out of 10 million on the tax roll, only 69,774 exercised their right when this law took effect in 2008.

Their number increased in 2009 but not by much, with only 146,668 taxpayers signing up.' Not by much, their number increased by 110%!!!!!!

Why can't we get news stories from a credible source. This daily rag and it's journalists are second rate at best.....

[hammered]

And of course none of these large corporate donations are made because something is expected in return. In some ways Thailand and its corporately owned parties are no different from in any other democracy

[givenall]

What a surprise. These politicians are their family memberor their own gangs. They help the rich become even more rich over here. Who saidpolitics is fair in Thailand

[steveromagnino]

they are afraid to be named as donors to the opposition, because the ruling party will try to squash them with taxes.

happens in many other situations - for example printing companies doing the red's literature are often visited by the officials, controls etc. That's why they are forced now to print in cambodia and bring it back through the green border.

In the case of the easily guessed car parts conglomorate, they wish to continue to receive significant advantages from future government policy, and have seen other companies fail or suffer from having backed the wrong horse; by privately backing but not going public, they can get all the benefits should PT/TRT/PPP be in power (with benefits ranging from tax holidays for large car manufacturers to locate here, ability to enjoy their own BOI privileges; protection on key aspects of FTAs and govt policy; even free PR with new technologies showcased in APEC evening dinners, etc etc). Should PT/TRT/PPP be either in opposition or unable to make any policy (as occurred in the Samak/Somchai governments)then they don't lose anything, and should the opposite side be in power, then at least publically they have not marked their territory and can also 'cross the floor' and do deals with the relevant politicians on the other side with another pay off.

Also, going public as a company involved with the red shirts would be a fairly stupid move right now in a major business, because there is no real telling what some may do - from Bramin throwing blood around to burning stuff to anti gay comments to blocking and searching cars to violence to threatening media to taking a senior telecoms figure hostage..... The Maleenonts were TRT faithful, and they still got a building torched (supposedly it was a mistaken target, but who knows); The Srivikorns were TRT faithful and have had their retail and hotel operations hugely damaged financially last year with no real opportunity for compensation. The odds of Thaksin returning and having any real power requires the backing of many of these big family conglomorates; many of whom have made their largest profits in the last 2 years (e.g. real estate) and have effectively switched sides or no longer see the need to even play sides, since the current government policy is often a summation of what that industry wants, so all players benefit somewhat anyhow.

Also, with more frequent elections, the 'investment' in an election to be paid off by government policy lately has been not so profitable. Ok, so the first 2 terms of TRT were both reasonably long, but the 2nd one, big payoffs to some, but not all investors in that government one could assume; since not so much happened in the TRT govt once diesel prices soared, and the focus moved to flogging chickens as a currency plus the new airport. The 2006 election was a lemon. The 2007 election was another lemon, since Samak did almost nothing even though the country and around the world was having financial issues.

If you had invested in the 2006,2007 elections, you'd be pretty cagey to invest again when the ROI was pretty low given a short period from which to milk the benefits.

For instance, if he wants the retailer families, then the only type of deal Thaksin could offer the retail families for instance, would be to break the Kingpower monopoly, reduce taxes, keep hamstringing the hyper markets, throw money into the monetary system with cheap credit and keep pretending publically to support mom and pops; but if he does that, then Kingpower would fight tooth and nail; the mom and pop vs. hypermarkets is now played out and it really is 7-11's day in the sun as a result of TRT's last effort doing this, taxes are important now and anyhow; the current government could do all of the above except the Kingpower deal, but even that is possible, and hardly a big vote winner. No; I think it's safe to say for retailers, they will never trust Thaksin again because they were already promised duty free reform; they were lied to with regards to the length and violence of the Ratchaprasong sit in, and they don't need him anymore.

It is quite an incestuous relationship between the major family businesses here, and perhaps TRT V1 in beginning 2000 was about the only time that they all lined up on one side with a fairly solid cabinet, a few basic policies and some nice protectionism in there and chance to push personal agendas where it mattered. By TRT 2 some of the families had already broken away as TRT moved back into the typical upcountry Jao Por approach to politics, with very few further policies pushed from 2004 onwards.

I can see maybe PT being strong in getting some of the construction firms and transporation as always; media and telecommunications of course; a few minor property players; agriculture - but mostly it isn't a choice of PT for favouritism or get nothing; it's a choice of PT for favouritism or Dems for reasonable fiscal policy and minor parties for favouritism with a stronger likelihood of getting to be part of govt. And few of these would want to associate themselves with a fugitive in self proclaimed exile; a fairly uncontrollable grass roots movement whose motives are likely to be increasingly pro poor and unlikely to be pro big business protection and who cannot be predicted; a party with no real leadership in Thailand and no PM candidate; a trackrecord of cheating; an agenda of constitutional manipulation ahead of business policies.

no, PT will be better to stick to their trusted gamebook; co-opt the regional factions and jao pors again, and get into power that way.

However, this time around it will be harder than ever; personally I don't see them doing it.

[samran]

There is a bit of a 'so what' about this article (like many from the Nation).

One of the TRT/PPP major donors is a board member of a company who's CFO is quite friendly with the Thai FM.

Like most places in the west, countries hedge their bets and have (and encourage) relationships across all parties.

[bangkokeddy]

What a surprise. These politicians are their family memberor their own gangs. They help the rich become even more rich over here. Who saidpolitics is fair in Thailand

People with money have political opinions too. And people with money support different political parties. just like the people with not so much money have political opinions and support different parties.

That is not a surprise.

Concerned i would be if the people with money support only one party and the people with not so much money support a completely different party. But that seems to be not the case.

What sounds little bit worth to concern is that some financial supporter of one specific party have a fear of being viewed as siding with the party.

[Buchholz]

, and even Advanced Info Service - which was previously owned by the family of fugitive ex-premier Thaksin Shinawatra, the de-facto leader of the Democrats' rival party Pheu Thai.

nice irony there...

For the Democrats' arch rival Pheu Thai Party - which is expected to fight with the Democrats for the most House seats and the right to form the next government - it has been assured by Thaksin of his full financial backing. However, many wealthy individuals and businesses are ready to give him a hand - although some of them prefer to remain anonymous.

Last year, Pheu Thai got donations of Bt15 million, according to the EC. Among the major donors were wealthy people close to Thaksin, including Virun Tejapaiboon, Ong-art Ua-apinyakul, and Pichai Naripthaphand.

There are only a handful of regular financiers, such as Pongsak Raktapongpaisal and Songkhram Kitlertpairoj, who were key figures in Pheu Thai's "former lives" - Thai Rak Thai and People Power parties, which were both dissolved by court order. Wealthy businessman Paiwong Techanarong, owner of the Bonanza Khao Yai Resort, is also generous to the opposition party - providing his vast resort as the venue for regular gatherings of the pro-Pheu Thai red shirts.

Good to see that the amatya and elite and aristocracy of Thailand are shown to support the PTP ( = Red Shirts = Thaksin).

Tends to take away some of the propaganda of how they all hate Thaksin and that PTP is all being about the poor rural farmers.

[katasyd]

Wealthy families backing main parties

By Wattana Kamchoo,

Thanatpong Kongsai,

Nerisa Nerykhiew,

Prapan Jindalertudomdee

The Nation

It took 4 to write this rubbish?

4 dam_n journalists can't string a decent news piece together is a disgrace.

[asiawatcher]

Wouldn't it be nice to have elections based on votes and not 'buying' probable paybacks once a ruling party gets in? This is all about 'insurance' for future Govt payouts and contracts. So transparent. Hardly a democratic process but then look at the example of the US - say no more.

[Ned]

Spare me the theatre. Bring in the tanks and stop all this costly nonsense.

[Orac]

"On March 8, the Democrats held a high-profile fundraising event to mark the party's 65 years. The party has yet to report to the Election Commission about the sum raised but early reports put the figure over Bt700 million."

That is a huge increase in donations for just one event whent you compare it with 1.38m for the whole of last year and 33m so far this year.

Not that I would possibly question the ability of 4 journalist from the Nation that it took to write the piece

[londonthai]

I would rather question quoted figures for the last year and the beginning of this one - it's obvious that 1.38 mill divided between 170 donors is an undercounting.

most probably 700mil collected during the fund rising event was announced during the event itself, now we have to wait how much would be declared to the electoral commission.

still, we are skimming through the tip of an iceberg - money flowing by billions to the parties and then back to the donors-investors, multiplying their wealth x10.

according to the post election polls, voters were offered 500-1000baht. There are some 30 million voters, so the budget for buying voters alone is up to 30bln (taking into consideration, that some voters take money from more than one party).

on top of that many times more have to be allocated for paid workers, billboards, tv/radio ads, literature, offices etc for some 10 different, competing parties

[Arkady]

they are afraid to be named as donors to the opposition, because the ruling party will try to squash them with taxes.

happens in many other situations - for example printing companies doing the red's literature are often visited by the officials, controls etc. That's why they are forced now to print in cambodia and bring it back through the green border.

In the case of the easily guessed car parts conglomorate, they wish to continue to receive significant advantages from future government policy, and have seen other companies fail or suffer from having backed the wrong horse; by privately backing but not going public, they can get all the benefits should PT/TRT/PPP be in power (with benefits ranging from tax holidays for large car manufacturers to locate here, ability to enjoy their own BOI privileges; protection on key aspects of FTAs and govt policy; even free PR with new technologies showcased in APEC evening dinners, etc etc). Should PT/TRT/PPP be either in opposition or unable to make any policy (as occurred in the Samak/Somchai governments)then they don't lose anything, and should the opposite side be in power, then at least publically they have not marked their territory and can also 'cross the floor' and do deals with the relevant politicians on the other side with another pay off.

Also, going public as a company involved with the red shirts would be a fairly stupid move right now in a major business, because there is no real telling what some may do - from Bramin throwing blood around to burning stuff to anti gay comments to blocking and searching cars to violence to threatening media to taking a senior telecoms figure hostage..... The Maleenonts were TRT faithful, and they still got a building torched (supposedly it was a mistaken target, but who knows); The Srivikorns were TRT faithful and have had their retail and hotel operations hugely damaged financially last year with no real opportunity for compensation. The odds of Thaksin returning and having any real power requires the backing of many of these big family conglomorates; many of whom have made their largest profits in the last 2 years (e.g. real estate) and have effectively switched sides or no longer see the need to even play sides, since the current government policy is often a summation of what that industry wants, so all players benefit somewhat anyhow.

Also, with more frequent elections, the 'investment' in an election to be paid off by government policy lately has been not so profitable. Ok, so the first 2 terms of TRT were both reasonably long, but the 2nd one, big payoffs to some, but not all investors in that government one could assume; since not so much happened in the TRT govt once diesel prices soared, and the focus moved to flogging chickens as a currency plus the new airport. The 2006 election was a lemon. The 2007 election was another lemon, since Samak did almost nothing even though the country and around the world was having financial issues.

If you had invested in the 2006,2007 elections, you'd be pretty cagey to invest again when the ROI was pretty low given a short period from which to milk the benefits.

For instance, if he wants the retailer families, then the only type of deal Thaksin could offer the retail families for instance, would be to break the Kingpower monopoly, reduce taxes, keep hamstringing the hyper markets, throw money into the monetary system with cheap credit and keep pretending publically to support mom and pops; but if he does that, then Kingpower would fight tooth and nail; the mom and pop vs. hypermarkets is now played out and it really is 7-11's day in the sun as a result of TRT's last effort doing this, taxes are important now and anyhow; the current government could do all of the above except the Kingpower deal, but even that is possible, and hardly a big vote winner. No; I think it's safe to say for retailers, they will never trust Thaksin again because they were already promised duty free reform; they were lied to with regards to the length and violence of the Ratchaprasong sit in, and they don't need him anymore.

It is quite an incestuous relationship between the major family businesses here, and perhaps TRT V1 in beginning 2000 was about the only time that they all lined up on one side with a fairly solid cabinet, a few basic policies and some nice protectionism in there and chance to push personal agendas where it mattered. By TRT 2 some of the families had already broken away as TRT moved back into the typical upcountry Jao Por approach to politics, with very few further policies pushed from 2004 onwards.

I can see maybe PT being strong in getting some of the construction firms and transporation as always; media and telecommunications of course; a few minor property players; agriculture - but mostly it isn't a choice of PT for favouritism or get nothing; it's a choice of PT for favouritism or Dems for reasonable fiscal policy and minor parties for favouritism with a stronger likelihood of getting to be part of govt. And few of these would want to associate themselves with a fugitive in self proclaimed exile; a fairly uncontrollable grass roots movement whose motives are likely to be increasingly pro poor and unlikely to be pro big business protection and who cannot be predicted; a party with no real leadership in Thailand and no PM candidate; a trackrecord of cheating; an agenda of constitutional manipulation ahead of business policies.

no, PT will be better to stick to their trusted gamebook; co-opt the regional factions and jao pors again, and get into power that way.

However, this time around it will be harder than ever; personally I don't see them doing it.

A pretty good analysis. The protectionism angle is interesting. Thaksin started off very protectionist, blaming the IMF for forcing cracks into the FBA, e.g. the opening of the retail sector to foreigners. He was also down on farang businesses, attempting a Mahathir style "Look East" policy to favour East Asia (particularly his beloved ancestral homeland) over farang countries. To benefit himself he increased the foreign ownership limit in telcos. Towards the end of his regime, he alienated the protectionist business lobby by turning full circle. He pushed hard for the US FTA that would have given free access to financial services, allowing US banks to open with 100% foreign ownership and unlimited branches by simply registering with the Bank of Thailand. This was even shot down by his own cabinet. Then, of course, he increased the foreign ownership limit on telcos to facilitate his own exit from AIS. His record on protectionism is a good illustration of the fact that Thaksin is completely mercurial and superficial and has no deep convictions over economic (or other) policy. He is driven purely by opportunism and whatever works at the time. He is so deeply egocentric that he probably doesn't even perceive over inconsistencies over time. On social and political policy, he didn't early in his regime show any signs of really caring about the masses or democracy and even publicly stated that democracy was just a means to an end (without specifying the end). It was the international media, particularly CNN and the BBC, that discovered the "champion of democracy" in him after his ouster. He tried the democracy cap on, had a look in the mirror and decided it would be a good fit at least until he could get back into power when some one would come out with a new fashion he could wear.

Re donations. I would think that many of the families and businesses reported as donating to the Dems have also discretely donated to PT. AIS is a dead ringer for that. Its top management still includes many died in the wool Thaksinites and they have often refused to join roadshows where the current finance minster is also speaking. CP Group allegedly made donations to the red shirt rallies but may have changed stance after they 7-11s got looted (apart from the book sections of course) by the mob. Bangkok Bank traditionally gave something to all major parties and were previously very chummy with Thaksin, as a businessman and a politician, but now have a deep loathing of PT and the red shirts after they and their honorary chairman, Prem Tinsulanonda, were targeted by the mob leaders. I would assume, however, that they will discretely donate to Bhum Jai Thai to help them take seats from PT in Isaan. Despite the evidence of discrete donations to PT, I think it is pretty clear that Thaksin will be again the main donor and that PT and the red shirts would collapse in short order without his continuing financial support.

[jayboy]

Thanks Steve and Arkady.It's always pleasurable to read well informed, balanced and thoughtful posts like these - made particularly convincing by the obvious understanding of history and context.The shrill and one dimensional posters, of whatever political view, could learn much from the depth and tone of these excellent posts.

Just as a postscript I think as everywhere the major corporates will in their financial support reflect to some degree the political affiliations of society at large and of course will not wish to burn their boats with any grouping that has a reasonable expectation of achieving power.

Edited March 29, 2011 by jayboy