The Private Sector Can Lead The Fight Against Graft: Thai Opinion

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EDITORIAL

The private sector can lead the fight against graft

The Nation

Most people have given up hope of the government ever taking action to end corruption, which is why a coalition of companies is taking up the cause

The Thai private sector has stepped forward to take an active role in promoting transparency and reducing corruption. Thailand's Private-Sector Collective-Action Coalition Against Corruption recently came out to support a campaign to urge the government to make public the benchmark prices for items listed under its procurement projects. While the demand has not been accepted by the government, the move marks an important signal from the private sector that it will not tolerate widespread corruption any longer.

The World Bank estimates that the Thai government is likely to spend more than Bt736 billion to rehabilitate the economy in the wake of this year's flood disaster. With this massive amount of money at stake, the private sector, via the coalition, has voiced concern that a large amount of this budget will find its way into the hands of unscrupulous politicians and officials.

The private-sector coalition, consisting of Thai businesses, said that corruption inside the government sector is usually carried out via five means: the concealment of information; fabrication of statements; tax evasion; the violation of legal procedures, through bribery; and in procurement and auction deals.

Corruption within the private sector usually manifests itself via insider information, creating artificial prices, embezzlement or money laundering.

A recent survey by the Thai Chamber of Commerce University showed that 69.8 per cent of respondents said they believed that there was corruption involved in the flood-relief effort. The survey in November also showed a declining number of people saying they would act against corruption, with 60.7 per cent saying they would act, down from 75 per cent in a similar survey in September. Moreover, 41 per cent of respondents said they were likely at some point to be adversely affected by corrupt practices.

While corruption is endemic in Thai society, the business sector has increasingly felt the pain from graft. A recently concluded meeting of the chambers of commerce in Thailand, held in Rayong province, concluded that corruption would continue to affect business. The problem ranks third in the list of risk factors, closely behind the domestic political situation and overall economic confidence.

The latest move by the private sector shows that businesses will actively take part in a public campaign to fight graft because its members are those who are most adversely affected.

The call for public dissemination of benchmark prices for procurement items is likely to be delayed because of technical procedures, as is conveniently claimed by the government. In the meantime, the private sector can do more. The business umbrella bodies should insist that members report malpractice and suspicious activities, and make it a condition that members refuse to be involved in bribery. Indeed, if the business sector refused to conspire in corruption, our culture of money politics would not be possible.

Nevertheless, the handing over of "tea money" in order to facilitate business transactions seems to be the norm. And it's still true that many businesses feel that they have to cater to corrupt officials and politicians to win business contracts. The recent burglary scandal at the home of the permanent secretary for transport is a classic case in point; one which raises the suspicions of everyone of how a civil servant could allegedly accumulate such a massive amount of money. But that case is ongoing and nothing has been proven so far.

The private sector coalition should translate its pledge to combat corruption into more action. The coalition said it plans to promote transparency in operations by providing certain information to the public. The government will almost certainly be reluctant to follow suit, which is why the private sector must take the lead and ramp up the pressure. In addition, the private sector can also press for watchdogs to monitor the government's work, especially the creation of an independent agency. It can also receive and catalogue complaints from the public.

The survey by the Thai Chamber of Commerce also shows that more than 67 per cent of respondents believe that corruption will become exacerbated one year from now if the government does not seriously address the issue now.

While people may be losing hope that the government will ever act against corruption, it is welcome news that the private sector is taking matters into its own hands.

-- The Nation 2011-12-16

[slapout]

I am sure the private sector could put the breaks on most of the corruption, as they seem to be the avenue for the funds that ultimately end up back in the politicians pocket/house. The system was/is set up by politicians, for politicians, and usually monitored by politicians and/or their appointed gofers. With all the grandiose plans proposed which are at committee, budget request, bidding, etc, stage, the doughnut boxes may have to be exchanged for duffel bags. Six to seven dozen duffel bags should fit in the cargo hold much more readily than those expense suitcases, save loads on out of pocket expense for the traveler/thief also.

[noitom]

Everyone is eager to get in to monitoring and influencing the flow and distribution of that Bt.736 million. The shakedowns and cons will now begin in earnest. Form more committees, take more surveys, keep up the hustle. It's good diversion from the reality that most of that money is already sliced up. All the Mr. 20%s are already in action and some are up to 40% depending on how big their swinging you know what is.

[hanuman2543]

"Just say no" to teamoney and the problem will disappear

[wintermute]

The Thai private sector is actually the cause of the problem in most cases. There are various near monopolies operating in Thailand who pay off government officials so they can continue to have near monopolies. They usually get special contracts, logistics, and agricultural subsidies.

This article might be referring to foreign businesses who should rightfully refuse to pay corruption money. However, that's the cost of doing business in SE Asia. The entire region is corrupt.

[surangw]

The thai system depends on corruption to get thing done.

NO corruption involved in a "deal" would raise suspicion.