Rice-Pledging: 'Huge Loss' On The Cards

[webfact]

Rice-pledging: 'Huge loss' on the cards

Petchanet Pratruangkrai

The Nation

At least Bt1.3 billion could be lost to corruption under the government's rice-pledging project, with warehouses alleging that officials have insisted on under-the-table money for allowing them to join the scheme.

A source from a warehouse operator taking part in the programme said each warehouse would have to pay Bt2 per 100-kilogram bag of rice to officials in exchange for joining the project.

"Officials from the Public Warehouses Organisation [PWO], which is responsible for rice stockpiles, have asked for 'tea money'. If we [warehouses] don't pay them, we will not be allowed to store the government's rice stockpile," said the source, who asked not to be named.

Under the scheme, warehouse operators will enjoy a monthly service fee for rice maintenance at Bt15 per 100kg bag.

The source said warehouses, particularly small and medium-sized operators, had no choice but to accept such a corrupt practice if they wanted to participate in the programme.

If they refused to pay the bribe, they would lose out as most rice farmers want to take part in the government's pledging project, which has set a high guarantee price to Bt15,000 per tonne for white rice, and Bt20,000 for jasmine rice.

Stockpiles

Under the plan, about 10 million tonnes of paddy rice are expected to go into the government's stockpiles. After polishing, this amount would produce about 6.6 million tonnes of rice.

If warehouses have to hand over Bt2 per 100kg bag, about Bt1.3 billion would go to corrupt officials.

To ensure transparency in the rice-pledging project, the source called for Deputy Prime Minister and Commerce Minister Kittiratt Na-Ranong to urgently inspect the work of the PWO and other related agencies, as there were "giant loopholes" in the scheme.

Although the government has a subcommittee to inspect and monitor rice pledging, the panel has to date only called for a meeting at its office, and there has been no inspection of the pledging areas.

Meanwhile, Deputy Commerce Minister Poom Sarapol, who is responsible for the rice-pledging scheme, yesterday refused to comment directly on the corruption rumour.

To ensure transparency in the pledging project, Poom has however set up three inspection subcommittees to investigate the matter.

Poom said that if any officials were found guilty of corruption, they would be subject to punishment under the law as well as disciplinary action.

-- The Nation 2011-11-16

[Moruya]

I'm so shocked that there could possibly be corruption in government schemes.

[zakk9]

Nah... this story must be from some other country. Corruption in Thailand? Can't be

[slapout]

The real corruption is stated as 15 baht per month per 100 kilo to store the rice. When you add storage fee to cost of rice at 300 baht per month/ton which is tax payer money, you have more instant inflation. Wonder how many storage facilities the people have who wrote this scam up. Throw in milling fees, weight lose, sale of cracked rice/husks, theft, spoilage, and a few empty bags counted on inventory. Might be possible to lose 50 to 60% of taxpayer monies.

[Buchholz]

The real corruption is stated as 15 baht per month per 100 kilo to store the rice. When you add storage fee to cost of rice at 300 baht per month/ton which is tax payer money, you have more instant inflation. Wonder how many storage facilities the people have who wrote this scam up. Throw in milling fees, weight lose, sale of cracked rice/husks, theft, spoilage, and a few empty bags counted on inventory. Might be possible to lose 50 to 60% of taxpayer monies.

Placing it at many, many times the figure of the OP's 1.3 Billion Baht in corruption, which admittedly, is only the starting point in this 400 Billion Baht scheme.

200 Billion Baht is a nice payday.

[BlueTerrace]

Wasn't the rice pledging scheme was a giant bribe to win rural votes anyway?

[schuimpje]

1321407434[/url]' post='4849814']

The real corruption is stated as 15 baht per month per 100 kilo to store the rice. When you add storage fee to cost of rice at 300 baht per month/ton which is tax payer money, you have more instant inflation. Wonder how many storage facilities the people have who wrote this scam up. Throw in milling fees, weight lose, sale of cracked rice/husks, theft, spoilage, and a few empty bags counted on inventory. Might be possible to lose 50 to 60% of taxpayer monies.

No need to count empty bags...there's millions of sandbags out there right now...

[animatic]

Wasn't the rice pledging scheme was a giant bribe to win rural votes anyway?

Of course, but aimed at the rice mafia and their canvaser teams, as the payback for Puyais that delivered the voters to the right side. It was the rushed into practice 'Rice Pledging Scheme' almost implement faster than pro Thaksin initiatives.

Of course protecting the rice harvest of the most influential vote deliverers and party partners from "god's holy retribution rain' and incompetence driven floods, has backfired beyond possible worse case nightmares... and yet the rice pledging guys are still going for the gold one way or another.

Everybody gets a piece of the rotting pie.

But I'd surmise that 'some pigs are more equal than other pigs', because they delivered higher numbers of voters, so their 'fee structure' for the pledging is considerably friendlier than those who barely delivered a district, or not at all.

Wanna bet whether those complaining in the OP are in the later group?

Bejing has a strong idea to stomp out this gross corruption;

Convict them quickly, but legally and impartially,

and then shoot them in the head in public before football matches.

Seems this is the only way that the point has been driven home in China.

Not pretty, hardly nice, but it has slowed the idiocies there.

Sadly it seems Thailand would have little alternative choices to really

wipe out the vile abuse of public finances that is chronic and endemic here.

Let the flames begin!

Edited November 16, 2011 by animatic

[Buchholz]

Wasn't the rice pledging scheme was a giant bribe to win rural votes anyway?

It would certainly seem so.

[moe666]

How much of the total gets kicked back up to the creators.

[sparebox2]

Yes, that is correct. Rice pleding should be a big loss to the government, hence a big win for the poor rural ill-educated farmers, who turns out to be human too.

Or who you rather the government make a big profit from such scheme? On the back of poor rural ill-educated farmers?

[animatic]

A man without ethics is a wild beast loosed upon this world.

Albert Camus

[animatic]

Yes, that is correct. Rice pleding should be a big loss to the government, hence a big win for the poor rural ill-educated farmers, who turns out to be human too.

Or who you rather the government make a big profit from such scheme? On the back of poor rural ill-educated farmers?

You really think the farmers are getting most of this cash?

In a word: 555555555

Loop holes....many, many, loop holes into which the money will fall

The farmers may get a 5-6% raise, and 94% goes into other pockets.

Edited November 16, 2011 by animatic

[RickBradford]

Convict them quickly, but legally and impartially, and then shoot them in the head in public before football matches.

Well, that's one way to boost attendances.

It seems in this country, whenever a scheme is mooted, it is designed and implemented by people whose aim is personal enrichment rather than any foolish notions of social good.

Is it any wonder they all fail to deliver what they claimed to do?

Edited November 16, 2011 by RickBradford

[outre99]

Yes, that is correct. Rice pleding should be a big loss to the government, hence a big win for the poor rural ill-educated farmers, who turns out to be human too.

Or who you rather the government make a big profit from such scheme? On the back of poor rural ill-educated farmers?

Ah, that all chestnut again.

The proverbial poor rural ill-educated farmers will not see much of anything in this scheme. Just like in its previous incarnations all of the extra benefits went to the processors and brokers.

If the government really wanted to help the poor rural ill-educated farmers they should spend the money on education, farming equipment/practice improvements and rural infrastructure.

Because an ill-educated farmer is not in good position to do anything remotely useful if somebody handed him some extra cash. The whole fish vs fishing skills dilemma.

Like the previous posters noted, this whole scheme is the payout to the guys who delivered the votes, not to the voters themselves. Big difference.

[animatic]

Convict them quickly, but legally and impartially, and then shoot them in the head in public before football matches.

Well, that's one way to boost attendances.

It seems in this country, whenever a scheme is mooted, it is designed and implemented by people whose aim is personal enrichment rather than any foolish notions of social good.

Is it any wonder they all fail to deliver what they claimed to do?

Sadly, all the 'claims' are just a tool to get at the ability to 'run a scheme', so a scam.

In this case they will pass down to the farmers just enough extra, so they will believe the next scam coming down the pike, but no more than necessary to pull it off.

Edited November 16, 2011 by animatic

[alant]

Nah... this story must be from some other country. Corruption in Thailand? Can't be

[Payboy]

Under the plan, about 10 million tonnes of paddy rice are expected to go into the government's stockpiles. After polishing, this amount would produce about 6.6 million tonnes of rice.

Someone needs to audit those milling yield figures.

[steveromagnino]

In a parallel universe....

PM:

I am shocked SHOCKED to find that corruption is happening in our rice pledging schemes

MINISTER OF AGRICULTURE:

Your winnings madam

PM:

(kop khun ka)

EVERYONE OUT AT ONCE!

[renaissanc]

But the government promised us that there would be no corruption in the rice mortgage scheme! I am so shocked and disappointed! Government corruption in Thailand?

[robokop]

Nah... this story must be from some other country. Corruption in Thailand? Can't be

I agree and am shocked that one would even think the Government would make money off a basic food item of the Thai people. Is this Government for the Government, by the Government, shall not perish from this earth.

[easybullet3]

Can I ask a simple question:

As I am aware, Rice grows UNDER WATER...

so,, technically, a LOT of rice in the flooded areas can still be harvested, right?

so is it possible that contaminated rice WILL eventually be sold and distributed and end up on our plates?

does anyone else here think its possible?

hence, should we avoid rice for the next 6 months?

[renaissanc]

"To ensure transparency in the pledging project, Poom has however set up three inspection subcommittees to investigate the matter. Poom said that if any officials were found guilty of corruption, they would be subject to punishment under the law as well as disciplinary action."

The Official Report will state: "After 6 months of exhaustive investigation all over the country by our officials we have not found enough evidence to say that there is any corruption in the scheme. If any warehouse operators have any evidence, they should come forward and provide it. There will be no retribution on the warehouse operators. You have my word as an official from the Public Warehouses Organisation."

[TAWP]

Once again the poor is tricked into thinking something will help them while in reality they will get the table-scraps of the founds while the usual suspects of regional feudal lords get their majority as thanks for controlling their districts - all for the benefit of the paymaster.

[Ricardo]

This scam would be less wrong, if the vast majority of the benefit were going to end up with the poor rice-farmers, rather than their feudal-overlords and commercial middle-man masters.

It will be paid for by the other poor, the consumers who have to pay the increased-price, for their daily food. Where will PTP be then ?

One can only hope that the crops won't lie unsold, and rot in their government warehouses, as with the dried-fruit scam, until further cost is incurred in having to dump part of the crop. Certainly there are plenty of other countries eager to export their rice to the world.

Welcome Back to the Good Old Days !

[animatic]

Can I ask a simple question:

As I am aware, Rice grows UNDER WATER...

so,, technically, a LOT of rice in the flooded areas can still be harvested, right?

so is it possible that contaminated rice WILL eventually be sold and distributed and end up on our plates?

does anyone else here think its possible?

hence, should we avoid rice for the next 6 months?

Not if it is contaminated by millions of different carcinogens leached from the towns and business flooded up stream. It would be tantamount to exporting death, to your own people... not that THIS is unheard of in Thailand...

But they might export some to India and Bangladesh and similar countries for back country poor's use.etc.

Edited November 16, 2011 by animatic

[SICHONSTEVE]

Under the plan, about 10 million tonnes of paddy rice are expected to go into the government's stockpiles. After polishing, this amount would produce about 6.6 million tonnes of rice.

Someone needs to audit those milling yield figures.

What, you mean set up a corrupt government body to monitor it - that will make a big difference. All it will do is put more people on the "corruption merry go round" as they take their cut and let them carry on as normal under the pretence that it is transparent, honest and non-corrupted !!!!.

[RickBradford]

As I am aware, Rice grows UNDER WATER.

Not exactly -- it can germinate underwater in clean water, but soon needs oxygen in the form of air to grow properly. Rice paddy ready for harvesting looks a bit like a cornfield, stalks up to 80cm tall, and quite dry.

At any rate, it cannot survive properly being completely submerged for long periods.

[allan michaud]

Bejing has a strong idea to stomp out this gross corruption;

Convict them quickly, but legally and impartially,

and then shoot them in the head in public before football matches.

Nice idea but I cant help thinking that only the low level officials would get the chop... as usual.

TIT

[whybother]

So not only will the government be paying 5-8,000 baht over normal price to buy the rice, they will also have to pay to store it.

The millers get their cut, since they're the ones selling it to the government.

The warehouses get their cut to store it.

The officials get their cut when they select who is allowed to store it.

The poor get screwed again.