Outspoken Thai Official Somchai Made Some Valid Points

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STREET WISE

Outspoken offIcial Somchai made some valid points

By Achara Deboonme

Somchai Sajjapongse, when floating the idea of creating a holding company that could control the stakes of commercial state enterprises, admitted that the State Enterprise Policy Office is just a rubber stamp when it comes to appointment of directors to the agencies.

Indeed, the "rubber stamp" status is applied to several other things.

Though supposed to be in charge of the direction of the agencies, generally the Office has no say in anything as true power lies with the ministries which regulate the industries the agencies are in. For example, any internal problems at Thai Airways International are out of its reach though they may affect the long-term stability of the airline. Only the ministries of Finance and Transport are in the picture. Regarding THAI's plea for greater flexibility, probably by ending its state-enterprise status, all he could do was lash out at THAI President Piyasvasti Amranand. "That can be done. But is it really ready for consequences? Or is it just the executive?"

No matter how concerned Somchai is about the financial health of specialised banks due to government policies, at best he could only express concern. In particular, Government Housing Bank's zero interest loan scheme. He noted that the scheme was launched when the government was nearing the end of its term. Plus, GHB is doing something that is hurting its fiscal discipline. The bank asked for not sending some returns to the Finance Ministry, in return for the scheme. However, all he can do is send a message of concern.

SEPO is also concerned about the new business of Thailand Post. Bank@Post is set to commence operations in lending to grassroots people, using the nationwide network of the postal company. Somchai said at the seminar that Thailand Post is one of the state enterprises that has coped well with competition. "From a profit centre, the post bank could become "a cost centre"," he said at the seminar, in the presence of the enterprise's chief. "Whatever, I lit an incense stick, praying that it would kick off and be well. Just make sure that you can kick off the lending programme in Om Koi." That raised laughter, following news that there are problems in Om Koi - the first destination of such postal bank service.

He also acknowledged that specialised banks have been set up to serve the government. But one way to prevent excessive schemes could be through reform. Specialised banks, which are not asked to launch social programmes, should not get their fingers into the areas. He also envisioned the mergers of some specialised banks, or dissolution of some to reduce redundancy.

During the seminar, he understood that he complained too much and this could cost him dearly.

"A new round of reshuffle is coming this October. I still don't know if I will remain where I am, or I'll moved somewhere else."

If he is moved to other units, it would be a pity both for him and the country. This man obviously has a lot in his head, designed for the greater strength of state enterprises. It would be sad if he is moved elsewhere and if his successor does not follow through his plans. If so, a big eraser is in the picture, to wipe out both Somchai and his plans.

-- The Nation 2011-06-20

[fstarbkk]

Good to know that there are a few people of integrity in senior positions in the Government Bureaucracy. Unfortunately too few to make a real difference, it seems.

[WithMarco]

too little, too late.

nothing will ever change in thailand.