Ousted Thirachai Mounts Fresh Facebook Attack On Finance Minister Kittiratt

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Kittiratt under fire on decrees

THE NATION

Ousted Thirachai mounts fresh Facebook attack on finance minister

Deputy Premier and Finance Minister Kittiratt Na-Ranong faces new criticism for the haste in which the four borrowing executive decrees are being issued. Critics - including the former finance minister - point out the government could issue a law and subsequently subject the flood-related investment projects to parliamentary screening, which is not required of executive decrees.

In the third post on his Facebook page after being dismissed from the Yingluck government, former Finance Minister Thirachai Phuvanatnaranubala said Kittiratt backed up his decision on the debt move with incorrect figures. Last Friday, he attacked the government for a proposal involving dilution of state ownership in PTT Plc, which forced Kittiratt to delay the move. That was followed by a post on the government's attempts to understate public debt, which Thirachai called an act against fiscal discipline.

Kittiratt proposed the four executive decrees to the Cabinet on January 4. Six days later, he stressed it was necessary the executive decrees be issued, instead of royal decrees, given the urgency regarding the government’s debt repayment ability. At present, for reasons of fiscal discipline, the government was liable to keep the annual debt repayment (principal and interest) at 15 per cent of expenditure or lower.

Thirachai said Kittiratt told the Cabinet the repayment level at the time was 12 per cent. As such, the Financial Institutions Development Fund (FIDF)’s debt needed to be moved out of the government's account to free the government from its interest burden. Such a burden, estimated at Bt45-Bt65 billion annually depending on interest rates, would limit the government’s ability to borrow more.

"I learnt later that he got this information (the repayment level) from the NESDB (National Economic and Social Development Board), based on its own economic projections. I also used the same figures in my interviews. Yet, a day before I was dismissed, I was informed by a Finance Ministry officer about the Public Debt Management Office’s figure. In the 2012 fiscal year, the level is only 9.33 per cent (7.36 per cent as interest payment and 1.97 as principal repayment). This was based on the official projection as presented to Parliament.

"(Based on the low level), this completely overrides the urgency in issuing the executive decrees," he said.

As the NESDB reports to the deputy prime minister on economic affairs, while the Public Debt Management Office is under the Finance Ministry, Thirachai urged Kittiratt - who is now the direct supervisor - to compare the discrepancy and look into the data collection and calculation.

Observers believe Thirachai was dismissed because of his conflicting opinions, chiefly on the government's solutions to tackle the FIDF debt. Originally, Kittiratt wanted outright transfer to the central bank and pondered government control of the central bank's assets - which include the near US$200 billion foreign reserves.

Some senators earlier urged the government to issue a law, to allow parliamentary screening of investment projects. Executive decrees need no parliamentary screening. One of the executive decrees commanded the transfer of the FIDF's Bt1.14 trillion debt to the Bank of Thailand, and another would allow the government’s borrowing of Bt350 billion to finance flood-related investment.

Yesterday, while vetting the 2012 budget bill, the Senate also expressed concern over the Bt400 billion central budget as well as the executive decree to borrow another Bt350 billion. The central budget normally contains no details of spending. Fearing corruption, they urged the government to closely monitor the flood rehabilitation spending in the short and long term.

In her address, Prime Minister Yingluck Shinawatra assured the Senate that the budget would be spent efficiently and transparently, with two focuses - rehabilitating the economy and preventing another disaster. She insisted the government needed to resort to a new budgeting approach this year, in the aftermath of the disastrous floods.

The expenditure this year is fixed at Bt2.38 trillion.

-- The Nation 2012-01-24

[Buchholz]

Pheu Thai Party in-fighting returns.

.

[Moruya]

You wouldnt want this lot in charge of your pension fund.

Theyll be selling school grounds next

[geriatrickid]

This isn't about infighting, but is a clash of fiscal policy. As I stated from the first day, former Finance Minister Thirachai Phuvanatnaranubala was a believer in fiscal restrain, of not spending money one did not have and of prudent management. His views are shared by many PTP and Democrat supporters.

His replacement is from the same group think production cycle as the previous finance minister Korn. They have a similar slick fiscal policy position. The investment fund and hedge fund managers love people like former minister Korn and Finance Minister Kittiratt Na-Ranong because of the opportunities to make money on the "stimulus" programs and the bundling and sale of loans. These two loosey goosey MBAs appeal to the younger supporters of the PTP and the Democrats with their get rich quick approach to life. The former finance minister understood what a balanced budget was and did not rely on extravagent financial tools to hush up debt and deficits.

Thirachai Phuvanatnaranubala had the long term strategy and vision that Thailand needed. Throwing him under the bus is a travesty. Former minister Korn can smirk all he wants, but his nemesis isn't finished quite yet. In the event that there is a change in government that does not feature the PTP or the Democrats, I expect the internationally respected and well regarded Thirachai Phuvanatnaranubala will be back.

Kittiratt Na-Ranong and Korn are the same thing; Pie in the sky snake oil salesmen that honed their skills in the industry that gave the world the current financial crisis. Thirachai Phuvanatnaranubala was a man of substance and integrity that most likely scared many people, especially the corrupt.

Edited January 24, 2012 by geriatrickid

[whybother]

<snip>

In the event that there is a change in government that does not feature the PTP or the Democrats, I expect the internationally respected and well regarded Thirachai Phuvanatnaranubala will be back.

<snip>

Which is unlikely to happen given that the two parties have had more than 75% of the vote in the last 4 elections (excl 2006).

[Old Man River]

This isn't about infighting, but is a clash of fiscal policy. As I stated from the first day, former Finance Minister Thirachai Phuvanatnaranubala was a believer in fiscal restrain, of not spending money one did not have and of prudent management. His views are shared by many PTP and Democrat supporters.

His replacement is from the same group think production cycle as the previous finance minister Korn. They have a similar slick fiscal policy position. The investment fund and hedge fund managers love people like former minister Korn and Finance Minister Kittiratt Na-Ranong because of the opportunities to make money on the "stimulus" programs and the bundling and sale of loans. These two loosey goosey MBAs appeal to the younger supporters of the PTP and the Democrats with their get rich quick approach to life. The former finance minister understood what a balanced budget was and did not rely on extravagent financial tools to hush up debt and deficits.

Thirachai Phuvanatnaranubala had the long term strategy and vision that Thailand needed. Throwing him under the bus is a travesty. Former minister Korn can smirk all he wants, but his nemesis isn't finished quite yet. In the event that there is a change in government that does not feature the PTP or the Democrats, I expect the internationally respected and well regarded Thirachai Phuvanatnaranubala will be back.

Kittiratt Na-Ranong and Korn are the same thing; Pie in the sky snake oil salesmen that honed their skills in the industry that gave the world the current financial crisis. Thirachai Phuvanatnaranubala was a man of substance and integrity that most likely scared many people, especially the corrupt.

As usual, some real facts bundled with personal opinions as if the opinions are real facts and probably believed by some.

On Korn, I admit he has one of those dodgy British educations (Winchester College and Oxford), but he has done OK despite it. Anyone with real interest can google his accomplishments.

One of the main issues Korn has with Thirachai, and Korn has written this publicly, was when, as a Democrat, he openly called on Thirachai (then head of the SEC) to look into Thaksin's offshore accounts (Ample Rich etc.) when he sold his assets to Singapore. However, your fiscally responsible Thirachai refused, thus allowing the former PM et. al. to not pay taxes on the transaction. Of course, this was all later overturned as we know and taxes have been paid.

Given his loyalty to the former PM, it is odd that they have thrown him under the bus. He must have really pissed the other politicians off.

Edited January 24, 2012 by Old Man River