DSI probes graft allegations in govt's rice-pledging scheme

The Nation

BANGKOK: -- The Department of Special Investigation (DSI) is investigating complaints of corruption in the government's rice-pledging scheme.

Vichai Kruetreepradit, senior executive vice president of the Bank for Agriculture and Agricultural Cooperatives (BAAC) said yesterday that the DSI has asked for information on all customers participating in the rice-pledging programme.

"We will provide full cooperation," he said.

The BAAC has paid about Bt146 billion to farmers who've presented the certification documents issued by the Public Warehouse Organisation and the Agricultural Extension Department for the 2011-12 growing season.

"The amount of money is for 9.6 million tonnes of rice," Vichai said.

In Ayutthaya, police chief Maj-General Anurak Taengkasem said officers had since last week inspected 26 rice warehouses in collaboration with the DSI officials.

Pol Lt-Colonel Pong-in Intarakhao, who heads the DSI Bureau of Security Crime, said the investigation has not yet found any evidence of irregularities.

"If we find grounds of corruption, we will take tough actions against wrongdoers," he said.

An informed source said the Commerce Ministry has been planning to seek a big loan to finance the rice-pledging scheme for the 2012-13 season.

"The issue will be raised at the Cabinet meeting next Tuesday," the source said.

The loan would be as high as Bt260 billion. In total, the budget for the scheme would be around Bt410 billion.

"The difference will be shouldered by the proceeds the Commerce Ministry will get by selling rice in its stock," the source said.

-- The Nation 2012-08-17

Sounds like someone out there is upset they are not getting what they think is their fair share of graft money hence crying foul.

Pol Lt-Colonel Pong-in Intarakhao, who heads the DSI Bureau of Security Crime, said the investigation has not yet found any evidence of irregularities.

So the hundreds of articles about this scheme from local and foreign sources are just dreaming this up. Even the Thai development research institute (witch is for this program) and the PM incharge has stated there is in fact corruption in the program.

But yet the DSI has not found any irregularities at all, yet and most likely never will. "and the wheel keeps turning round and round"

Those that have benefited most from this program- 63% millers and merchants. 32% large scale rice operations. 5% small (poor) farmer. http://interceder.net/latest_news/Thailand-Development-Research-Institute

This phenomenon is not new.

The authorities can never find shops selling copied CDs.

The authorities can never find shops selling pornography.

Brothels can never be found.

Casinos can never be found.

Drug lords can never be found

Okay chaps gather around, when you have finished this little number , we then move on to the next gov dept and so forth and so forth , about 100years from now we might ,I say might , have made some progress.

This phenomenon is not new.

The authorities can never find shops selling copied CDs.

The authorities can never find shops selling pornography.

Brothels can never be found.

Casinos can never be found.

Drug lords can never be found

They are clearly looking in the wrong places.

Either that, or the fact that just maybe, their bosses have instructed them to go in with their eyes closed and wearing plugs in their ears whilst putting tape over their mouths - see no..........!!!

A cartoon was printed, in the Si Krung news paper, on 4 August 1931. It the caption to the cartoon was " Cruel-faced giant does,t plough the fields but on the back of the people" . Which translates farming on the backs of the peole. It appears hothing has changed in the last 80 years of democracy. The rich politicians are leaches on the backs of the people.

The farmers are going deeper into debt, and the corrupt officials are making new rooms to keep the money. Thr rice pledge was for the farmer to get 15,000 baht per ton, but they are being cheated. For the farmer to raise a crop he goes into debt for seed and fertilizer. Some farmet are in debt for an avarage of 100,000 baht, to be able pay back the loan he must harvest 7 tons of rice. This does not count for the cost of production and living expensed.

This is Thailand, and there are large sums of money involved.

The chances of a portion of that money being siphoned off to benefit a few is very high.

The chances of anyone being found guilty of any wrongdoing is almost zero.

The loan would be as high as Bt 260 billion. In total, the budget for the scheme would be around Bt410 billion.

"The difference would be shouldered by the proceeds the Commerce Ministry will get by selling rice in its stock," the source said.

So either the government is heavily-discounting the current-stock in order to sell them, and thus making a massive loss at current world market-prices, or can't sell its rice at all, and thus the funds to finance the new crop must be borrowed from the bank, which (according to Wikipedia) is a state-enterprise under the jurisdiction of the Ministry of Finance, originally set-up to extend credit to individual farmers rather than the government itself ?

So one part of the government lends another part of the government money, to enable it to make even larger losses, on this wonderful scheme which helps the rice-millers/middle-men poor farmers.

I somehow foresee a long-term problem at the BAAC, if this sort of pass-the-parcel financing continues, perhaps someone can work out how to stick the losses to the Bank of Thailand's accumulated-reserves, once again ? Or maybe the BAAC can get its capital from overseas, so any problems belong to the farang lenders, instead.

Hopefully the powers-that-be will be out-of-power by the time the chickens come home to roost, coughing with financial Bird-Flu, so nobody need worry about the consequences ?

Edited August 17, 201213 yr by Ricardo

"If we find grounds of corruption, we will take tough actions against wrongdoers," he said.

(unless they're rich and powerful)

An informed source said the Commerce Ministry has been planning to seek a big loan to finance the rice-pledging scheme for the 2012-13 season.

"The issue will be raised at the Cabinet meeting next Tuesday," the source said.

The loan would be as high as Bt260 billion. In total, the budget for the scheme would be around Bt410 billion.

"The difference will be shouldered by the proceeds the Commerce Ministry will get by selling rice in its stock," the source said.

So, 410 - 260 = THB 150 billion will be provided by the Commerce Ministry selling rice from stock during the 2012-2013 period.

Say 1,000,000 tn. sells for 15,000/tn., so only 10,000,000 tn. needs to be sold in the 2012/2013 financial year. Maybe my figures are a bit off?