BURNING ISSUE

Bt2 trillion plan raises fears of graft

Piyanart Srivalo

The Nation

BANGKOK: -- The plan to borrow Bt2 trillion to finance infrastructure projects is expected to see the ghost of corruption return to haunt the Yingluck Shinawatra government once again.

The plan was announced when Yingluck outlined her government's national strategy on Tuesday.

The announcement was made to a meeting of heads of government agencies and provincial governors to unveil the prime minister's vision for running the country in her second year in office.

The prime minister also explained the preparations for the 2014 fiscal year budget bill. The budget would gear the country up to be ready for full integration into the Asean Economic Community (AEC). The prime minister said projects in various clusters in the provinces had to respond to the national strategies.

The framework for drafting the 2014 fiscal year budget bill was approved by the Cabinet on Monday, while the bill to allow the Finance Ministry to borrow the Bt2 trillion would be submitted to the Cabinet for deliberation on February 5.

Yingluck said most of the loan would be used to finance transport infrastructure during the seven-year plan. The Transport Ministry will own most of the projects, including land, marine and air-transportation projects.

Up to Bt1.6 trillion would be used on rail projects, including 10 electric train projects, high-speed train projects and double-track railway projects. And Bt320 billion would be used for road-construction projects, including expansion of provincial roads from two to four lanes and construction of motorways to link provinces and regions in preparation for the AEC.

The government plans to spend Bt30 million from the loan to invest in marine-transportation projects, including a deep seaport project in Songkhla, a seaport project in Chumphon and the Pakbara seaport project in Satun.

It seems the "big boss", former prime minister Thaksin Shinawatra, has made preparations for these various transport mega-projects. Thaksin has had Chadchart Sittipunt, whom he trusts, promoted from the position of deputy transport minister to become transport minister. Chadchart is known to be an expert in handling infrastructure projects.

But the amount of the new loan will be very high and thus will rekindle perceptions of alleged irregularities and siphoning off of funds, which hit the government before.

So far, the government has not completely cleared itself from the suspicion that most of its budget has been siphoned off and ended up in the pockets of party funders, politicians and those close to the government, rather than stimulating the economy. But now there will be several new mega projects.

Anyway, this time the government has come up with measures to be more prudent in spending the Bt2 trillion in loan funds. It has come up with a strategic plan to develop the transport infrastructure before seeking the loans, unlike the Bt350 billion the government earlier borrowed for handling comprehensive flood-prevention projects.

Critics said the Bt350 billion loan was like issuing a blank cheque by the government because it obtained the loans before drafting the projects. Critics alleged the government later came up with projects just to spend money from the Bt350 billion. Such practices led to a lack of transparency and caused the budget to be siphoned off, critics alleged.

Worse still, the drawing of money from the Bt350 billion loan occurred slowly. The Bt350 billion loan executive decree took effect on February 8, 2012, but so far only Bt3 billion has been drawn out to finance projects. This has led to allegations that someone influential ordered the delay of the loan spending.

With a large part of the Bt350 billion remaining, a big new loan will be acquired by the government soon.

It will worsen the public debt crisis. Worse still, it will provide new ammunition for attacking the government over alleged corruption in various projects.

-- The Nation 2013-01-24

"The prime minister said projects in various clusters in the provinces had to respond to the national strategies."

Can some one explain that to me maybe I am wrong but it sure sounds like gobbledegook to me.

"Yingluck said most of the loan would be used to finance transport infrastructure during the seven-year plan. The Transport Ministry will own most of the projects, including land, marine and air-transportation projects."

Going to be one rich transportation Minister.

the numbers don't seem to work out. 2 trillion baht loan and spend 1.6 trillion on infrastructure. Well let us see 30% of 2 trillion =.6 trillion that plus the 1.6 trillion =2.2 trillion. Just seems to be some thing wrong here. Maybe they didn't have any math classes in Kentucky,

Bt2 trillion plan raises fears guarantees the reality of graft.

and...

Chadchart is known to be an expert in handling infrastructure projects.

Another contradiction in terms, I see.

Edited January 24, 201313 yr by arthurboy

Is it safe to assume there will be no additional funding (B2 bill year at the moment) for waste water, garbage and pollution control within this decade?

"The prime minister said projects in various clusters in the provinces had to respond to the national strategies."

Can some one explain that to me maybe I am wrong but it sure sounds like gobbledegook to me.

I think it means it's nothing to do with us if it goes wrong. It clearly puts the responsibility on the 'projects in various clusters in the provinces'.

I assume the government is just responsible for the money and it's distribution. You can make your own assumptions about that.

Thailand does not need to borrow more, it needs to collectively manage what it has and remove corruption from the equation. But that is wishful thinking and way beyond the capabilities of the PM who, at behest of her brother, is doing his bidding in trying to bankrupt Thailand so he can return as the conquering saviour with all the pomp and ceremony attached to creating himself as the icon with the answers. Welcome to Shinawatland.

"Anyway, this time the government has come up with measures to be more prudent in spending the Bt2 trillion in loan funds. It has come up with a strategic plan to develop the

transport infrastructure before seeking the loans, unlike the Bt350 billion the government earlier borrowed for handling comprehensive flood-prevention projects."

I take it the author means the Government will plan the projects prior to taking the loan.....if so, what's the difference.....planning or not..the moneywill go

"The prime minister said projects in various clusters in the provinces had to respond to the national strategies."

Can some one explain that to me maybe I am wrong but it sure sounds like gobbledegook to me.

I believe the Americans have a very well known phrase that might cover her statement.

It goes something like this "The p.m. said her government is one big "fluster cluck" or words to that effect.

Bt2 trillion plan raises fears guarantees the reality of graft.

and...

Chadchart is known to be an expert in handling infrastructure projects.

Another contradiction in terms, I see.

anything involving money in Thailand raises fears of graf

"The prime minister said projects in various clusters in the provinces had to respond to the national strategies."

Can some one explain that to me maybe I am wrong but it sure sounds like gobbledegook to me.

Maybe the Skype connection from Dubai was bad and she didn't hear the quote correctly

"The plan to borrow Bt2 trillion to finance infrastructure projects is expected to see the ghost of corruption return".

Precisely when did the "ghost of corruption" go away?

Much as the poor will always be with us, so will corrupt politicians and others of that ilk.

Corruption 101.....all these folks will get some of the people's money-no doubt about it. They are drooling at the bit, can't wait until that money is released.............where will they hide it all??? Under their beds? A couple of year's ago friends told me the mayor of Chiang Mai spent 50,000,000 baht to get elected, but not to worry...said the family will make 5 times that amount when he's in power.

"Yingluck said most of the loan would be used to finance transport infrastructure during the seven-year plan. The Transport Ministry will own most of the projects, including land, marine and air-transportation projects."

Going to be one rich transportation Minister.

the numbers don't seem to work out. 2 trillion baht loan and spend 1.6 trillion on infrastructure. Well let us see 30% of 2 trillion =.6 trillion that plus the 1.6 trillion =2.2 trillion. Just seems to be some thing wrong here. Maybe they didn't have any math classes in Kentucky,

Now, now hellodolly don't be casting aspersions on my home state. Although I will have to admit that KSU where our esteemed PM attended is not known for teaching much of anything.

Corruption 101.....all these folks will get some of the people's money-no doubt about it. They are drooling at the bit, can't wait until that money is released.............where will they hide it all??? Under their beds? A couple of year's ago friends told me the mayor of Chiang Mai spent 50,000,000 baht to get elected, but not to worry...said the family will make 5 times that amount when he's in power.

I know what you mean. My friend from the UK has a Thai wife here in this village. She spent B200,000 buying votes to get a job (puyai ban) that at that time paid B5,000 per month. Go figure.

Wow, it seems the PM (the real one) has been a busy boy in Dubai coming up with all these projects, appointing lackeys to oversee them and organise the finance.

Just as well his sister assures us there is no corruption in his government otherwise it might become a free for all..

Perhaps before borrowing this 2 Trillion Yingluck would be so kind as to explain, in detail, what the f### have they done so far with the 350 Billion they borrowed last year for water management.

I'm not particularly thrilled about seeing the money I pay in taxes go down a black hole.

Edited January 24, 201313 yr by AleG

Is it safe to assume there will be no additional funding (B2 bill year at the moment) for waste water, garbage and pollution control within this decade?

These particular items above are the polluting factors that emanate from the current maladministration and its rhetoric, waste liquid and more than enough solid bovine fecal matter water and of course flatulence therefore of course no funds will be made available to deal with the aforementioned problems.

Never in the history of Thailand have so many people been charged so much by so few people so as to line the pockets of those few people.

My apologies to Sir Wiston Churchill for the modification of one of his quotes

" the ghost of corruption"

I kinda like this term. Now I believe some ghost are very real...

With all this money printing and corruption eating it all up and precious little going to anything worthwhile, I cannot imagine for the life of me why the baht is so strong - people should be selling it like mad before the end comes.

With all this money printing and corruption eating it all up and precious little going to anything worthwhile, I cannot imagine for the life of me why the baht is so strong - people should be selling it like mad before the end comes.

They are printing money too?

The road to economic ruin begins with borrowing money for things that you want rather than need.

With all this money printing and corruption eating it all up and precious little going to anything worthwhile, I cannot imagine for the life of me why the baht is so strong - people should be selling it like mad before the end comes.

very simple, dollar are worst

All these populist policies, graft, borrowing etc. will eventually mainly hurt those who support it - the poor (red shirts), so I don't really care.

The poor may get a bunch of freebies now, but eventually Thailand will have borrowed so much money that the lenders say stop. When that happens the situation will be similar to Greece, except that Thailand cannot get the EU to bail it out, and I seriously doubt ASEAN will step in. Then all public spending will automatically stop and public schools, hospitals and all other forms of welfare will deteriorate rapidly. Alot of people will lose their jobs too. Needless to say, this will hurt the poor most, but no matter how much they protest, or how many building they set on fire, there will be no more money to throw at the problems

The rich however will have moved their money out of the country by then, and they will be using private schools and private hospitals etc., so for them nothing much will change.

As it is the poor who insist the government spends money we don't have, I believe it is only fair that it is the poor that pay the bill in the end! I just wish for their sake, that they could see the future problems now, so they have a chance to avoid them :-(

Edited January 25, 201313 yr by monkeycountry

With all this money printing and corruption eating it all up and precious little going to anything worthwhile, I cannot imagine for the life of me why the baht is so strong - people should be selling it like mad before the end comes.

So where would you park your money then?

Japan, no growth zero interest, 150%gdp public debt

Britain no growth, zero interest high public debt

USA. Fiscal cliff, massive public debt, little growth, no interest

EU, no growth, massive public debts, zero interest

All printing more money, all with huge unemployment, huge pension liabilities and social systems.

Thailand 40 to 50% debt, interest rates 3% plus, no unemployment, 3 to 5% gdp growth.

Just curious, which looks like it is on better shape. It's not a beauty contest, just working out where your money can make a bit more money.

All these populist policies, graft, borrowing etc. will eventually mainly hurt those who support it - the poor (red shirts), so I don't really care.

The poor may get a bunch of freebies now, but eventually Thailand will have borrowed so much money that the lenders say stop. When that happens the situation will be similar to Greece, except that Thailand cannot get the EU to bail it out, and I seriously doubt ASEAN will step in. Then all public spending will automatically stop and public schools, hospitals and all other forms of welfare will deteriorate rapidly. Alot of people will lose their jobs too. Needless to say, this will hurt the poor most, but no matter how much they protest, or how many building they set on fire, there will be no more money to throw at the problems

The rich however will have moved their money out of the country by then, and they will be using private schools and private hospitals etc., so for them nothing much will change.

As it is the poor who insist the government spends money we don't have, I believe it is only fair that it is the poor that pay the bill in the end! I just wish for their sake, that they could see the future problems now, so they have a chance to avoid them :-(

Totally agree.

Is it safe to assume there will be no additional funding (B2 bill year at the moment) for waste water, garbage and pollution control within this decade?

These particular items above are the polluting factors that emanate from the current maladministration and its rhetoric, waste liquid and more than enough solid bovine fecal matter water and of course flatulence therefore of course no funds will be made available to deal with the aforementioned problems.

Never in the history of Thailand have so many people been charged so much by so few people so as to line the pockets of those few people.

My apologies to Sir Wiston Churchill for the modification of one of his quotes

And do you have one iota of proof to support your rather serious allegation of severe corruption ???

Just one, perchance ?

If so, please show.

Is it safe to assume there will be no additional funding (B2 bill year at the moment) for waste water, garbage and pollution control within this decade?

These particular items above are the polluting factors that emanate from the current maladministration and its rhetoric, waste liquid and more than enough solid bovine fecal matter water and of course flatulence therefore of course no funds will be made available to deal with the aforementioned problems.

Never in the history of Thailand have so many people been charged so much by so few people so as to line the pockets of those few people.

My apologies to Sir Wiston Churchill for the modification of one of his quotes

And do you have one iota of proof to support your rather serious allegation of severe corruption ???

Just one, perchance ?

If so, please show.

Thats easy. The PTP Commerce Minister has admitted to it. Is that proof enough? Or is that not Philw's definition of severe corruption? Of course not.

http://cambodiaricee...-news/385/.html

Oh yeh, and finance minister Kittiratt did as well.

Edited January 25, 201313 yr by dcutman

Is it safe to assume there will be no additional funding (B2 bill year at the moment) for waste water, garbage and pollution control within this decade?

These particular items above are the polluting factors that emanate from the current maladministration and its rhetoric, waste liquid and more than enough solid bovine fecal matter water and of course flatulence therefore of course no funds will be made available to deal with the aforementioned problems.

Never in the history of Thailand have so many people been charged so much by so few people so as to line the pockets of those few people.

My apologies to Sir Wiston Churchill for the modification of one of his quotes

And do you have one iota of proof to support your rather serious allegation of severe corruption ???

Just one, perchance ?

If so, please show.

Rice scam.

Posted Today, 18:38

siampolee, on 2013-01-24 16:40:19, said:

Quote

Is it safe to assume there will be no additional funding (B2 bill year at the moment) for waste water, garbage and pollution control within this decade?

These particular items above are the polluting factors that emanate from the current maladministration and its rhetoric, waste liquid and more than enough solid bovine fecal matter water and of course flatulence therefore of course no funds will be made available to deal with the aforementioned problems.

Never in the history of Thailand have so many people been charged so much by so few people so as to line the pockets of those few people.

My apologies to Sir Wiston Churchill for the modification of one of his quotes

And do you have one iota of proof to support your rather serious allegation of severe corruption ???

Just one, perchance ?

If so, please show.

I think that you'll find my comments have been suitably reinforced by both dcutman post # 28 and OzMick post # 29.

Philw.

Are you able to prove beyond any doubt that this current maladministration and of course its puppet master are indeed beyond reproach ?

I would suggest that unless you had walked on water or raised the dead,, turned water into wine etc in a previous incarnation the answer must be ''No.''