Corruption Costs Bt193 Bn A Year: Thai Anti-Graft Campaign Group

[webfact]

Corruption costs 'Bt193 bn a year'

Nongnapas Pithapatee

The Nation

Thawatchai Yongkittikul, an executive member of ACT

Illegal outflow of money hits welfare, education, wealth distribution: groups say

BANGKOK: -- An average of US$6.42 billion (Bt192.6 billion) a year illegally flowed out of Thailand between 2001 and 2010 - and a large portion of this was believed to be earned through corruption, an anti-graft campaign group has said.

The Anti-Corruption Organisation of Thailand (ACT), citing results of a study by the US-based Global Financial Integrity (GFI), yesterday pointed to the seriousness of corruption in Thailand. It said the public lost the opportunity to benefit from a huge amount of money that could have been spent on social welfare, education, and wealth redistribution.

'Great loss for the country'

"The illegal outflows of money were a great loss for the country. We lost the opportunity to spend it on national development," said Thawatchai Yongkittikul, an executive member of ACT. "Corruption, therefore, is a severe threat to the country."

He said most of the illegal financial outflow was income from corruption, crimes, the drug trade, and tax evasion.

Citing the GFI's report "Illicit Financial Flows from Developing Countries: 2001-2010", Thawatchai said illicit outflows to developed nations averaged US$586 billion (Bt17.5 trillion) per annum over the period. In 2010 alone, the outflow totalled $859 billion (Bt25.7 billion).

"Over the decade, illegal financial outflow grew six-fold, up from Bt66 billion to Bt371 billion," Thawatchai said. He called for measures to curb the illegal outflow and to prevent possible irregularities involving expensive government projects.

Thailand ranked 13th in terms of the outflow size among the 143 developing countries studied, according to the GFI report. There are four other Asean countries in the top 20, the others being Malaysia (third place), the Philippines (6th), Indonesia (9th), and Brunei (20th).

"Asia, accounting for 61 percent of cumulative outflows, was still the main driver of such flows from developing countries," said the report, which was released in December 2012.

ACT chairman Pramon Suthiwong said the organisation would this year focus on changing people's lax attitude about corruption.

'Policy corruption is the worst form of graft'

Meanwhile, the Office of Reform for Fair Society yesterday denounced "policy corruption" as the worst form of graft in Thailand.

"Policy corruption has worsened the problem of corruption in Thailand," said Poldej Pinprateep, who heads the agency's working group studying the graft problem.

"Graft has reached its highest point in development. Cabinet members have a lot of power under the Constitution and this makes it easy for them to become corrupt," Poldej said.

He added that "policy corruption" is rare in wealthier Asian countries like South Korea and Taiwan, where the anti-corruption forces are stronger.

-- The Nation 2013-01-29

[dcutman]

"Over the decade, illegal financial outflow grew six-fold, up from Bt66 billion to Bt371 billion," Thawatchai said. He called for measures to curb the illegal outflow and to prevent possible irregularities involving expensive government projects.

Outflow?! You call that outflow?! You want to see outflow?!

Come back in a few years after Yingluck, her brother and rest of the PTP crew get finished. Then you will see just how much outflow is possible.

Edited January 29, 2013 by dcutman

[BrianCR]

Excuse me for asking but if they know of this outflow of cash why can't they stop it or even better just seize it?

[noitom]

These numbers are very low and merely lip service to illegal flow of money through and out of Thailand. World organizations should launch "independent" investigations in Thailand and get the numbers straight first.

[arthurboy]

'Policy corruption is the worst form of graft' etc, etc,...

No sh*t, it's always been the case, Sherlock. Read your history.

Why do you think these leeches become so called politicians? Here's a clue. It ain't nothing to do with developing the country, and it certainly ain't anything to do with fairness, equality and providing opportunity for the vast majority of Thai people.

[KKvampire]

Corruption in Thailand? Yawn

[Tatsujin]

Well, at least it's been put out there in public as it were . . . perhaps in the not too distant future they'll actually do something about it rather than just reporting it.W

What am I thinking . . . of course they won't stop it, that's why Politicians become Politicians . . . to pad their bank accounts.

It would be interesting to see some stats on relative net worth of some Politicians from before, during and after their terms. I highly doubt many left with less than they started with, and in most cases I would guess it would show a huge jump upwards.

[trainman34014]

'Thailand ranked 13th in terms of the outflow size'. Well; I'm sure Yingluck and her buddy's will be trying harder to achieve the Number 1 spot in the future to become the 'hub' of illegal outflow in Asia !

[blaze]

Could someone offer a definition of 'policy corruption'.

Wouldn't it refer to official policy reflected in legislation that benefits legislators.

This would NOT be illegal and not be regarded as 'corruption' by international agencies- bad policy- self serving, yes- But corruption refers to illegal behaviors- behaviors outlawed by legislation. Not encouraged by them.

Interesting that the US article does not refer to 'policy corruption'- though we all in Thailand know that it is code for 'what Thaksin did'.

Again, this shifts the 'blame' for corruption from state officials to legislators.

As if - if we get rid of the legislators, then corruption will not be so rampant...

[EvilDrSomkid]

Excuse me for asking but if they know of this outflow of cash why can't they stop it or even better just seize it?

Because the people who can stop it are the ones partly responsible for the corruption.

I believe that policy corruption in this case means the various constitutional amendments proposed, in addition to the proposals to dis-empower various state agencies, like the NACC and the national ombudsman's office. In short, remove as many checks and balances.

Implement the true kleptocracy.

[PatOngo]

Ohhh never mind....Mai phen rai

[ChrisY1]

Just the thin edge of the enormous cash wedge that leaves Thailand......

[nong38]

Each man for himself ( or woman ) then, dont worry about the ordinary Thai people, they know nothing different, they would of course if that money were chanelled in their direction, to make their lives better. Best not hold our breaths, some need to update their motors.

[ginjag]

Just the thin edge of the enormous cash wedge that leaves Thailand......

perhaps Yingluck hasn't been notified of the report ?? if so I'm sure she would act Quickly to stop it ???

[OzMick]

Could someone offer a definition of 'policy corruption'.

Wouldn't it refer to official policy reflected in legislation that benefits legislators.

This would NOT be illegal and not be regarded as 'corruption' by international agencies- bad policy- self serving, yes- But corruption refers to illegal behaviors- behaviors outlawed by legislation. Not encouraged by them.

Interesting that the US article does not refer to 'policy corruption'- though we all in Thailand know that it is code for 'what Thaksin did'.

Again, this shifts the 'blame' for corruption from state officials to legislators.

As if - if we get rid of the legislators, then corruption will not be so rampant...

Actually you are quite wrong. Legislation which has benefit for legislators causes a conflict of interest (not in itself corrupt) and the legislators benefiting should declare that conflict and either take steps to stop benefits flowing to them or recuse themselves from the vote. Voting for legislation which carries a conflict of interest is corruption. Voting for a policy which has failed in its aims, has huge costs and benefits legislators (rice scam) should be sufficient grounds to have half (at least) of PTP MPs jailed. If only.

[blaze]

The American report that seems to have some knickers twisted, uses data from 2010. I can't see how this can be seen as a failing of the PTP- when they didn't come to power till 2011.

Who was PM in 2010? (Since it seems that the sitting government has to be held responsible for Thailand's meagre showing in the study).

[rubl]

"Over the decade, illegal financial outflow grew six-fold, up from Bt66 billion to Bt371 billion," Thawatchai said. He called for measures to curb the illegal outflow and to prevent possible irregularities involving expensive government projects.

Outflow?! You call that outflow?! You want to see outflow?!

Come back in a few years after Yingluck, her brother and rest of the PTP crew get finished. Then you will see just how much outflow is possible.

When some are finished the money might flow back as in 'mission accomplished' and be used for the good of all ... ... those who have money

[rubl]

The American report that seems to have some knickers twisted, uses data from 2010. I can't see how this can be seen as a failing of the PTP- when they didn't come to power till 2011.

Who was PM in 2010? (Since it seems that the sitting government has to be held responsible for Thailand's meagre showing in the study).

Current government is always the one to blame or praise. That start from day 1. It's like coming into an inheritance with some bad, some good. So yes, any current government

[Pimay1]

"Over the decade, illegal financial outflow grew six-fold, up from Bt66 billion to Bt371 billion," Thawatchai said. He called for measures to curb the illegal outflow and to prevent possible irregularities involving expensive government projects.

Outflow?! You call that outflow?! You want to see outflow?!

Come back in a few years after Yingluck, her brother and rest of the PTP crew get finished. Then you will see just how much outflow is possible.

When some are finished the money might flow back as in 'mission accomplished' and be used for the good of all ... ... those who have money

It could be deja vu all over again in the reverse order.

Toppled prime minister may have removed assets from Thailand. Thaksin departed for Finland to begin a foreign tour on September 9, loading up his government-assigned aircraft with 58 large suitcases and trunks, the official of the national carrier said.

http://www.breakingnews.ie/world/toppled-prime-minister-may-have-removed-assets-from-thailand-278090.html

[Robby nz]

13th on the list up to 2010, wonder which way it has gone in the last 2 years?

[dcutman]

"Over the decade, illegal financial outflow grew six-fold, up from Bt66 billion to Bt371 billion," Thawatchai said. He called for measures to curb the illegal outflow and to prevent possible irregularities involving expensive government projects.

Outflow?! You call that outflow?! You want to see outflow?!

Come back in a few years after Yingluck, her brother and rest of the PTP crew get finished. Then you will see just how much outflow is possible.

When some are finished the money might flow back as in 'mission accomplished' and be used for the good of all ... ... those who have money

I suppose it could be some sort of a Money Market Fund, any guesses as to the maturity date of this fund?

[ricardofel]

Corruption 101 is taught in all universities now. Greed is a sub-class and not to be missed. How best to rip-off your fellow Thais and screw the country...that's the philosophy....miracle Thailand.

[rubl]

"Over the decade, illegal financial outflow grew six-fold, up from Bt66 billion to Bt371 billion," Thawatchai said. He called for measures to curb the illegal outflow and to prevent possible irregularities involving expensive government projects.

Outflow?! You call that outflow?! You want to see outflow?!

Come back in a few years after Yingluck, her brother and rest of the PTP crew get finished. Then you will see just how much outflow is possible.

When some are finished the money might flow back as in 'mission accomplished' and be used for the good of all ... ... those who have money

I suppose it could be some sort of a Money Market Fund, any guesses as to the maturity date of this fund?

Well, another topic has the Finance Minister mentioning the firm Baht and quickly borrowing THB 350 billion before July 2013. Maybe this can be considered an insider tip

[Tatsujin]

"Over the decade, illegal financial outflow grew six-fold, up from Bt66 billion to Bt371 billion," Thawatchai said. He called for measures to curb the illegal outflow and to prevent possible irregularities involving expensive government projects.

Outflow?! You call that outflow?! You want to see outflow?!

Come back in a few years after Yingluck, her brother and rest of the PTP crew get finished. Then you will see just how much outflow is possible.

When some are finished the money might flow back as in 'mission accomplished' and be used for the good of all ... ... those who have money

It could be deja vu all over again in the reverse order.

Toppled prime minister may have removed assets from Thailand. Thaksin departed for Finland to begin a foreign tour on September 9, loading up his government-assigned aircraft with 58 large suitcases and trunks, the official of the national carrier said.

http://www.breakingn...and-278090.html

I'm betting when (if) he returns, it will be with WAY more than 58 large suitcases . . . . . . and he'll have his own private jet(s) this time.

[rubl]

Yes OzMick- I suppose that's true- there are some I suppose that will praise/blame the war in Iraq on the Obama government - but they wouldn't have a lot of credibility would they?

So- back to the report- even using conservative methodology the research group saw a spike during 2010- what might have caused that spike?

Well we can expect this report to be spun along political lines- and conveniently ignore the fact that the system of law in Thailand is broken- and has been for a long long time. No government can clamp down on this rot. None has- and until the rule of law becomes sancrosanct- none will.

Please read the topic again. There is no mention of a spike. Only that 2010 was 42% higher than the 10-year average globally and Thailand seeing illegal financial outflow growing six-fold, up from Bt66 billion to Bt371 billion over the same 10-year period.

[dcutman]

The American report that seems to have some knickers twisted, uses data from 2010. I can't see how this can be seen as a failing of the PTP- when they didn't come to power till 2011.

Who was PM in 2010? (Since it seems that the sitting government has to be held responsible for Thailand's meagre showing in the study).

The 193 bil baht is an average over those 10 years with accumulative effect of 65 billion usd. The study shows the steady percentage gain in outflows over the last decade. In other words these outflows have steadily been getting worse here in Thailand as well as the rest of the world. http://www.gfintegri...nt/view/592/70/ Edited January 29, 2013 by dcutman

[Skywalker69]

Just the thin edge of the enormous cash wedge that leaves Thailand......

perhaps Yingluck hasn't been notified of the report ?? if so I'm sure she would act Quickly to stop it ???

She knows.

[rubl]

The article mentioned in the OP can be found on the Global Financial Integrity website and be downloaded in full or abstract summary form or in executive summary for those who like that type of 'big words' reporting.

http://iff.gfintegrity.org/iff2012/2012report.html

[blaze]

Yes, I misread. Rubl and Dcutman are correct.

I looked for historic data by country but couldn't find it on the GFI website.

[FarangTalk]

Each man for himself ( or woman ) then, dont worry about the ordinary Thai people, they know nothing different, they would of course if that money were chanelled in their direction, to make their lives better. Best not hold our breaths, some need to update their motors.

It's the ordinary Thai people that are at fault. They engage in corruption on a daily basis; giving tea money to the local Police, paying for expedited services and the general acceptance of the status quo. Change is desperately needed, but it won't come with the mai bpen rai attitude of the vast majority of Thais.

The real problem is with the flawed cultural and societal model that allows the rampant corruption to be deemed acceptable and that people who engage in wholesale corruption to be somehow untouchable within the patronage system of society. The mai bpen rai ethos among most Thais allows corruption and dishonesty to fester and continue unabated. It will take decades of education and a change in attitudes towards immoral behaviour to address the problem.