Anti-Corruption Network Follows Up On 2 Trillion Baht Project: Thailand

[webfact]

Anti-Corruption Network follows up on 2 trillion baht project

BANGKOK, 29 January 2013 (NNT) - The Anti-Corruption Network said it would keep a close watch on the government’s spending, especially the 2 trillion baht budget earmarked for infrastructure projects, while revealing that Thailand is ranked 13th among world’s top money-smuggling countries.

According to Anti-Corruption Network(ACN) Chairman Pramon Sutivong, the ACN is adjusting its strategies in order for them to perform their tasks more effectively. It will focus on 4 missions: building credibility, building networks both inside and outside the country, promoting more transparency policies, and creating morale among people.

For now the ACN will mainly focus on the government’s 2 trillion baht infrastructure projects. The network will follow up on every step and transition made-- from procurement to auction processes. He said the ACN had asked the government to sign a written statement before any auction was to take place to confirm its transparency.

He also revealed the findings of a research on money laundering, conducted by the Global Financial Integrity (GFI), a Washington-based non-profit research and advocacy organization, saying Thailand is ranked 13th on the list of world’s top money-smuggling countries, with over 2 trillion baht smuggled out between 2001 and 2010.

-- NNT 2013-01-29

related:

Bt2 Trillion Plan Raises Fears Of Graft

[seminomadic]

Yep.... they'll be wanting their piece of the action too.

[blaze]

The real harm in the export of dirty money that the US research group studied, is not just the fact that the money is obtained illegally- but rather that it is shipped abroad- and thus, taken out of local circulation.

So much money is being moved abroad that one must wonder if closing the doors to the export of dirty money will be a disincentive to the behaviors that lead to its acquisition. In other words- stop the out flow- and there will be less major league corruption/crime etc.

Yet this self appointed watchdog- (who used the term 'policy corruption' with all that that is code for) has not seen fit to promote one single recommendation put forth by the Global Financial Integrity Group- preferring to use the report as a weapon with which to further its own not so hidden political agenda.

(notice there is no talk about examining military procurements, the budgets of state agencies, the follow up on proceeds from illegal logging and drug smuggling- only monitoring the government megaprojects.)

According to the report about 80 percent of the money laundered internationally- is acquiredf through trade mis-pricing-- yet Pramon doesn't even discuss that aspect of the report- or come to think of it- ANY aspect except that Thailand has a problem with corruption-

(trade mispricing is a way that companies avoid paying taxes-- there is an interesting link to TM in the report- it has NOTHING to with government corruption- and a LOT to do with shady business practices. in the private sector!

Why is he not demanding that the AMLO begin to shift its focus from ensuring that Thailand is not a place to which dirty money is sent- and start paying attention to dirty money being sent OUT of Thailand?

Edited January 29, 2013 by blaze

[rubl]

The real harm in the export of dirty money that the US research group studied, is not just the fact that the money is obtained illegally- but rather that it is shipped abroad- and thus, taken out of local circulation.

So much money is being moved abroad that one must wonder if closing the doors to the export of dirty money will be a disincentive to the behaviors that lead to its acquisition. In other words- stop the out flow- and there will be less major league corruption/crime etc.

Yet this self appointed watchdog- (who used the term 'policy corruption' with all that that is code for) has not seen fit to promote one single recommendation put forth by the Global Financial Integrity Group- preferring to use the report as a weapon with which to further its own not so hidden political agenda.

(notice there is no talk about examining military procurements, the budgets of state agencies, the follow up on proceeds from illegal logging and drug smuggling- only monitoring the government megaprojects.)

According to the report about 80 percent of the money laundered internationally- is acquiredf through trade mis-pricing-- yet Pramon doesn't even discuss that aspect of the report- or come to think of it- ANY aspect except that Thailand has a problem with corruption-

(trade mispricing is a way that companies avoid paying taxes-- there is an interesting link to TM in the report- it has NOTHING to with government corruption- and a LOT to do with shady business practices. in the private sector!

Why is he not demanding that the AMLO begin to shift its focus from ensuring that Thailand is not a place to which dirty money is sent- and start paying attention to dirty money being sent OUT of Thailand?

True, true, but they have to start somewhere. Furthermore lots of money is going from government to private sector and out. If the money wasn't going to private sector in the first place ... ...

[Jawnie]

Just want to chime in here with the "Jawnie mantra" regarding corruption: do some under-cover sting operations. It's the best way to deal with corruption...no one will ever see it coming.

[zyphodb]

Anti-Corruption-Network ??? Thailand????

[blaze]

Agree Rubl- they must start somewhere- but given that in the worst offending countries, over 80 percent of the money sent abroad originates with mis-pricing by private companies- essentially cheating on taxes, shouldn't the place to start be with the private sector. If you mention 'corruption' to most thais they will sniff and tell you- its the government. Rarely do they talk about the state agencies- about the unions- and never about the large companies. Yet this report suggests that in fact, the real big corruption in all the dead beat countries at the bottom of the list- is NOT government corruption- but corporate corruption- tax dodging.

Who is really demanding that the recommendations in the American report be implemented? Nobody. That is getting too close to home. Better to keep the nation preoccupied with rumors of massive government corruption than ave the citizens demanding that the companies (of all sizes) do their legal and civic duty: pay taxes! And quit sending the money saved by tax dodging out of the country!

While it may or may not be justified- the preoccupation with 'what the Thaksin's did' and are doing- has a lot of fat cats in the private sector breathing easy= and grateful for groups like the Anti-corruption Network and their efforts to blame all the moral failings of the nation on one family and its immediate cohorts.

Edited January 29, 2013 by blaze

[rubl]

Agree Rubl- they must start somewhere- but given that in the worst offending countries, over 80 percent of the money sent abroad originates with mis-pricing by private companies- essentially cheating on taxes, shouldn't the place to start be with the private sector. If you mention 'corruption' to most thais they will sniff and tell you- its the government. Rarely do they talk about the state agencies- about the unions- and never about the large companies. Yet this report suggests that in fact, the real big corruption in all the dead beat countries at the bottom of the list- is NOT government corruption- but corporate corruption- tax dodging.

Who is really demanding that the recommendations in the American report be implemented? Nobody. That is getting too close to home. Better to keep the nation preoccupied with rumors of massive government corruption than ave the citizens demanding that the companies (of all sizes) do their legal and civic duty: pay taxes! And quit sending the money saved by tax dodging out of the country!

I have seen the enemy- and the enemy is US.

I've (tried to) read the full report. It doesn't give recommendations, it only gives an explanation on how figures are collected, weighted, methodology, etc.

Where did you find the recommendations ?

As I wrote before complaining about the private sector moving money abroad with the government somehow providing a lot of that money AND legislating against 'money laundering' AND having 'anti-corruption drives', watching the government seems more worthwhile. Don't stop the flow halfway, but at the start and make sure that the path gets proper legislation to be supervised, audited, criminalised, and enforce laws.

[TackyToo]

If the anyway bad to the bone foreign countries would treat Thai workers in Thai Restaurants worldwide the same way as they treat farrags here, Isan would have an overpopulation...

[looping]

It will focus on 4 missions:

1. building credibility = promoting perception that they're doing a good job.

2. building networks both inside and outside the country = working out who they can do business with.

3. promoting more transparency policies (which won't be adopted by the Thai govt...why would they want to???

4. and creating morale among people = by concluding, after a year or so, that corruption is decreasing in LOS, building the perception that they actually give a crap and are doing a good job.

Total BS.

Do they aim change the public's opinion about corruption? this could be a good starting point.

[blaze]

_{http://www.gfintegrity.org/storage/gfip/documents/reports/IFF2012/tip_sheet_iff_2012-embargoed.pdf}

_{that is the link that breaks down the origins of the black money being sent abroad (though not by country)- the exception to the 80 percent statement are Mid-East countries-}

_{For those that don't want to wade through the report- here are the recommendations:}

_•

_{Addressing the problems posed by anonymous shell companies, foundations, and trusts by requiring confirmation of beneficial ownership in all banking and securities accounts, and demanding that information on the true, human owner of all corporations, trusts, and foundations be disclosed upon formation and be available to law enforcement;}

_{• Reforming customs and trade protocols to detect and curtail trade mispricing;}

_{• Requiring the country-by-country reporting of sales, profits and taxes paid by multinational corporations;}

_{• Requiring the automatic cross-border exchange of tax information on personal and business accounts;}

_{• Harmonizing predicate offenses under anti-money laundering laws across all Financial Action Task Force cooperating countries; and}

_{• Ensuring that the anti-money laundering regulations already on the books are strongly enforced.}

_{IF you follow the link on mispricing- you will note that it refers to 'cross border' dealings- not the dealings of private companies with their own governments.}

[rubl]

^

All recommendations seem to point to keeping an eye on the government, it's responsabilities and how those responsabilities are executed.

So the ACN seems to be focused correctly, IMHO

[blaze]

text deleted- too sleepy.

Edited January 29, 2013 by blaze

[hellodolly]

For now the ACN will mainly focus on the government’s 2 trillion baht infrastructure projects. The network will follow up on every step and transition made-- from procurement to auction processes.

They want to be sure they are getting there cut.

He said the ACN had asked the government to sign a written statement before any auction was to take place to confirm its transparency.

Well that would sure be a corruption stopper sign a paper saying you aren't going to cheat.

And if the Government does sign it are they going to believe it and use it as an excuse for not following the flow of the money.

[kurnell]

This is ridiculous. Most Thais cant even count to a trillion.

[Ian Curtis]

This is ridiculous. Most Thais cant even count to a trillion.

Well, it also seems that Americans and Canadians can't count that far either!

As most of us know, a trillion is 10 to the power of 18 (1 000 000 000 000 000 000) but in N America they have for some reason reduced it to 10 to the power of 12 (1 000 000 000 000). And before people moan about not using comma's then be aware that the comma became obsolete with the introduction of the SI units (System International) in 1971 (or was it 1973?).

So, when a newspaper says something completely undefined like 1.7 trillion, then precisely what do they mean? Whose version, English, French, German or the odd ones like USA?

[Thai at Heart]

Agree Rubl- they must start somewhere- but given that in the worst offending countries, over 80 percent of the money sent abroad originates with mis-pricing by private companies- essentially cheating on taxes, shouldn't the place to start be with the private sector. If you mention 'corruption' to most thais they will sniff and tell you- its the government. Rarely do they talk about the state agencies- about the unions- and never about the large companies. Yet this report suggests that in fact, the real big corruption in all the dead beat countries at the bottom of the list- is NOT government corruption- but corporate corruption- tax dodging.

Who is really demanding that the recommendations in the American report be implemented? Nobody. That is getting too close to home. Better to keep the nation preoccupied with rumors of massive government corruption than ave the citizens demanding that the companies (of all sizes) do their legal and civic duty: pay taxes! And quit sending the money saved by tax dodging out of the country!

While it may or may not be justified- the preoccupation with 'what the Thaksin's did' and are doing- has a lot of fat cats in the private sector breathing easy= and grateful for groups like the Anti-corruption Network and their efforts to blame all the moral failings of the nation on one family and its immediate cohorts.

Indeed, transfer pricing IS the way that just about every mnc exporter in Thailand operates. Been there done that, all legal, vast majority of profit ending up in some tax haven somewhere.

Everyone does it because they can legally. How do factory workers get only 20k baht per month, but the product cost thousands. The fat sits offshore.

[RickBradford]

Here's how Thailand will apply those recommendations:

_{Avoiding the problems posed by anonymous shell companies, foundations, and trusts by requiring bribes for confirmation of beneficial ownership in all banking and securities accounts, and demanding hush money to ensure that information on the true, human owner of all corporations, trusts, and foundations need not be disclosed upon formation and not be available to law enforcement;}

_{• Reforming customs and trade protocols to detect and ignore trade mispricing;}

_{• Requiring bribes to overlook the country-by-country reporting of sales, profits and taxes paid by multinational corporations;}

_{• Requiring bribes to overlook the automatic cross-border exchange of tax information on personal and business accounts;}

_{• Confusing predicate offenses under anti-money laundering laws across all Financial Action Task Force cooperating countries; and}

_{• Ensuring that the anti-money laundering regulations already on the books are not strongly enforced.}

[whybother]

This is ridiculous. Most Thais cant even count to a trillion.

Well, it also seems that Americans and Canadians can't count that far either!

As most of us know, a trillion is 10 to the power of 18 (1 000 000 000 000 000 000) but in N America they have for some reason reduced it to 10 to the power of 12 (1 000 000 000 000). And before people moan about not using comma's then be aware that the comma became obsolete with the introduction of the SI units (System International) in 1971 (or was it 1973?).

So, when a newspaper says something completely undefined like 1.7 trillion, then precisely what do they mean? Whose version, English, French, German or the odd ones like USA?

The US (and most other countries from what I see) use a billion = 1,000 million, and a trillion = 1,000 billion. Yes, traditionally not correct, but as long as everyone understands it, that's the way it will stay.

[MegaRanter]

having lived in Thailand for 13 years, sometimes I see corruption as not so much a problem as in other climes.

http://odili.net/news/source/2013/jan/29/826.html

this is the type of news that happens multiple times on a daily basis in my country where I live now. My problem is that too many hands have access to the till. The civil services is a huge monster compared to the politicians.

[lizardtongue]

According to my 'google' search 2 trilion THB equals $ 67217800000.00 divide that by the 60 million Thai nationals and you get $ 1120.29666667 the point being.................I have forget lmfao!!!!

Oh well back to the 'Jack'