Love-Motel Operator Sold FROC Overpriced Boats: Thai Democrat

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FLOODS OF CONFLICTS

Love-motel operator sold FROC overpriced boats: Democrat

The Nation

An opposition MP yesterday came up with "new information" to support his allegation of irregularities involving the government's Flood Relief Operations Centre (FROC).

At a press conference held at the Parliament building, Vilas Chantharapitak, a Democrat MP from Bangkok, questioned the FROC director Pracha Promnok's approval for the purchase of 2,500 small boats for Bt14.2 million. Pracha is also the justice minister.

The purchase was made by the Interior Ministry's Department of Disaster Prevention and Mitigation.

Vilas said the department paid far above market prices for the boats, 2,000 of which are made of plastic and 500 of fibreglass.

The opposition MP said the 7-foot (2.13m) plastic boats, bought for Bt4,500 each, could be acquired for Bt2,000 on the market. The highest price for the same type of boat available online is Bt3,500, he said.

Boats made of high-density polyethylene (HDPE) bought for Bt6,000 each could be bought from the market at only Bt3,450, and for just Bt3,000 through a website, according to Vilas.

The Democrat said that while he was unable to find the 10-foot fibreglass boats purchased for Bt7,500 each, he did locate a 12-foot steel boat selling for Bt3,000.

Vilas said the FROC and Pracha could not avoid responsibility for possible irregularities in the purchase of the boats, as the Department of Disaster Prevention and Mitigation cannot make such purchase without approval from the FROC and its director.

"There will be more controversies involving the FROC. This purchase is just one among tens of thousands of boats bought" by government agencies during the flooding, the Democrat MP said.

Vilas told yesterday's press conference he had also discovered that the private company involved in supplying the boats to the agency is located on Ratchadaphisek Road and operates a love motel.

"To my knowledge, this company is not involved in the manufacturing of boats," he said.

The MP said he would submit to the National Anti-Corruption Commission the information he had received involving the purchase of boats, and similar questionable deals regarding the procurement of relief supplies and other items worth Bt158 million. He said he could buy the same items at least 30 per cent cheaper from provinces as far away as Chiang Mai in the North and Songkhla in the South.

-- The Nation 2011-12-03

[bkkjames]

The love boat is sailing....

Where is captain stubing (man I am old) lol

[mca]

Love-motel operator sold FROC overpriced boats: Democrat

Does the Nation have a random headline generator installed in their office?

[jonclark]

It wasn't Chuwit who sold em the boats was it?

[exeter]

Not making a profit out of the floods were they? I expect the 12' steel boats had air con thats why they were more expensive .

[OzMick]

Now we know what they were doing while waiting for the floodwaters to arrive - setting up the scams. Explains why canals weren't cleaned until flooded and semi-blocked.

Why hasn't Pracha's 1000 boat scheme been looked at? If ever there was a plan waiting for a scam that was it.

[IAMSOBAD]

Were the rubber boats made from used RUBBERS from the LOVE HOTEL?

That could mean the captains of each boat is a true seeeeman!

[nikster]

Pretty weak accusation really... prices for small boats soared during the floods, everyone knows that?! Supply and demand...

[PoorSucker]

Pretty weak accusation really... prices for small boats soared during the floods, everyone knows that?! Supply and demand...

And was price controlled by the government with up to 7 years in prison on the scale for violations.

[Orac]

No reason it shouldn't be investigated but it shouldn't be too difficult to defend against due to the demand situation.

It is one thing to find a boat online now and get a decent price for it - i would be very surprised if the prices weren't significantly lower now as the supply must have gone through the roof. On the other hand, if you had gone to 'the market' just before the floods were hitting their peak and placed an order for 1000's of boats for immediate delivery the price would probably not be the same.

An analogy would be going to your local market a few weeks ago and saying that you bought some eggs at 30 baht a dozen in April so would like to buy 1 million now at the same price and would be back in an hour to pick them up (I haven't got a clue what the price of eggs is but it is the principle I am getting at).

[jaltsc]

Let's see...Government buys a product at an inflated price. Supplier makes unusually high profits (Well, high if it were a retail purchase). Supplier probably has some sort of business arrangement with government officials.

I DON'T SEE WHY THIS IS NEWS!!!

Now, if the government bought the product at a normal discount price (considering that this was a bulk purchase), and there were no signs of a kickback...

THAT WOULD BE NEWS!!!

Edited December 3, 2011 by jaltsc

[saintofsilence]

Another option now when looking for a motel try a boat shop.

[hammered]

There is an irony in this somewhere for a party that happily seated a certain minister to now stress certain aspects of this case....

I also wonder if the MP raising the price issue is aware of how the market price of boats varied rather a lot during the floods. There certainly wasnt a set price and it was all over the place and that it was more for people and I guess government about actually getting the things (supply) than about looking around for the best price. Fo rthat reason even if there were something odd about this case it one that can never be proven as anyone who observed what was happening with the desperate search and supply of boats will be fully aware.

Demand goes up, supply diminishes, price goes up. Floods recede, demand drops, supply more plentiful, price drops.

[animatic]

There is an irony in this somewhere for a party that happily seated a certain minister to now stress certain aspects of this case....

I also wonder if the MP raising the price issue is aware of how the market price of boats varied rather a lot during the floods. There certainly wasnt a set price and it was all over the place and that it was more for people and I guess government about actually getting the things (supply) than about looking around for the best price. Fo rthat reason even if there were something odd about this case it one that can never be proven as anyone who observed what was happening with the desperate search and supply of boats will be fully aware.

Demand goes up, supply diminishes, price goes up. Floods recede, demand drops, supply more plentiful, price drops.

And as the by far largest purchaser of BOATS for the flood, the EMERGENCY COMMITTEE,

should be able to get a bargain basement price, not the highest possible price.

Bulk pricing for emergency use. End of story.

[geriatrickid]

It wasn't Chuwit who sold em the boats was it?

no.

[geriatrickid]

Pretty weak accusation really... prices for small boats soared during the floods, everyone knows that?! Supply and demand...

And was price controlled by the government with up to 7 years in prison on the scale for violations.

No.

[AleG]

Pretty weak accusation really... prices for small boats soared during the floods, everyone knows that?! Supply and demand...

And was price controlled by the government with up to 7 years in prison on the scale for violations.

No.

Yes

Deputy Government Spokesperson Anuttama Amornwiwat stated that the Cabinet had resolved to categorize 16 additional items as price-controlled products after they became highly demanded amid the flood crisis. The items include bottled water, tissue paper, flashlights, toothpaste, toothbrushes, sand, concrete blocks, life vests, small boats, rubber boots, water tanks, water pumps and candles.

[animatic]

It wasn't Chuwit who sold em the boats was it?

no.

A sarcasm free zone it seems.

[Scott]

An off-topic post inferring that the PM was at a Love Motel has been deleted along with multiple posts replying to it.

When you find an obvious troll, it's best not to quote their post, since yours will be removed as well.

[LandOfSmileys]

The true value (or price) of something, is determined by what somebody pays for it. So if the boats were bought, then the value is, the price paid. I think. Why is there no boat emoticon? <\ /> some oars maybe?

[ballpoint]

The true value (or price) of something, is determined by what somebody pays for it. So if the boats were bought, then the value is, the price paid. I think. Why is there no boat emoticon? <\ /> some oars maybe?

Thanks to your post I've figured out the motel connection. The boats were sourced elsewhere, the love motel just supplied the 'ores.

[geriatrickid]

My response was inappropriately added as I was responding to the statement " And was price controlled by the government with up to 7 years in prison on the scale for violations"

First, let's look at what the price control declaration was;

Manufacturers are required to declare production costs and the prices of raw materials used in manufacturing the products. Violators would receive a maximum five-year jail sentence, a fine of up to 100,000 baht, or both. Retailers who sold products higher than the recommended prices would be punished with a maximum jail sentence of seven years and fined up to 140,000 baht.

Manufacturers did indeed declare their production costs and prices of raw materials. For the most part, I think the manufacturers tried to respect the intent of the price controls. Where the system didn't work was with some of the retailers. For the most part, the large chains behaved responsibly. As much as we like to bash corporations, Tesco, 7-11, Singha etc., had corporate policies and positions that were supportive of the goal of affordable assistance and some of these big distributors and retail chains absorbed the added distribution costs. Where the system had serious problems was with independent and small retailers, the so called "middle class" and "merchant class" class" that always gets portrayed as suffering etc.

I am impressed that some people have the common sense to understand the concept of supply and demand and appreciate that when demand increases with supplies of products decreased, that prices almost always increase. Unless there is a central distribution or entry point for the goods, it is difficult to impose price controls. That is why it can work with key goods such as rice or oil and gas. Where it is difficult to enforce is with small ticket consumer goods. Whenever there is "rationing" or quasi rationing, scoundrels will always find away to create a black market or circumvent the intended pricing structure.

[muchogra]

'Vilas told yesterday's press conference he had also discovered that the private company involved in supplying the boats to the agency is located on Ratchadaphisek Road and operates a love motel.'

Defense: Boats are acquired to satisfy the fetish freaks.

Ain't nothing wrong with that, is it? LMAO!

[noitom]

A headline with provocative headline pointing out that that it was a "Love-Motel Operator" who sold the the boats. No Love-Motel Operator was identified in the story so why was this allegation kept anonymous? If it was kept anonymous, why was it worth a news story and worse, a headline? Readers like to correlate headlines with facts. Let's get at the facts The Nation, and get some professional investigative journalism standards. We want to know who the Love-Motel Operator is who sold the boats at inflated prices. Isn't that what the headline and story is all about?

[ralphlsasser]

The Nation is so bias, it's hard to believe anything they write. It's obvious they are pro Damacrat.

[billd766]

'Vilas told yesterday's press conference he had also discovered that the private company involved in supplying the boats to the agency is located on Ratchadaphisek Road and operates a love motel.'

Defense: Boats are acquired to satisfy the fetish freaks.

Ain't nothing wrong with that, is it? LMAO!

Whatever floats your boat.

Did they come with or without waterbeds?

Edited December 4, 2011 by billd766