Pouring Money Into A Bottomless Pit Of Corruption: Thai Editorial

[webfact]

EDITORIAL

Pouring money into a bottomless pit of corruption

The Nation

Annual losses due to graft and illegal economic activities could already have put Thailand well on the way to becoming a developed nation

BANGKOK: -- Recent revelations about massive economic losses resulting from widespread illegal activities in Thailand are alarming indeed, but unfortunately not surprising. The Anti-Corruption Organisation of Thailand (ACT) has cited a figure from Washington-based Global Financial Integrity (GFI), which conducted an annual survey on illegal outflows worldwide to show that Thailand lost around Bt192 billion per year through illegal financial outflows between 2001 and2011.

This figure is shameful, as it puts Thailand in 13th place for such losses among developing nations.

We cannot simply shrug off this figure because it means a loss of opportunities for ordinary Thai people, and this is only the figure for the past decade. Moreover, illegal financial outflows are closely associated with illegal activities such as corruption, counterfeiting of copyrighted goods, and drug and human trafficking.

Again, not surprisingly, the survey suggests that this problem is common in Asia. Other Asean countries are on the top 20 list for such losses, including Malaysia, the Philippines, Indonesia and Brunei. China is also near the top.

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

The massive amount in illegal outflows in Asia should be an alarming wake-up call for governments, concerned agencies and citizens because an increasing number of big development and investment projects in the region involve international transactions, especially now that the region is moving towards a common market. How can Asean and the wider region progress if good business practice is so commonly ignored and abused?

In spite of the severity of the problem, Thais in general have a lax attitude towards graft. The media is also affected by this attitude. Recently a TV drama that portrayed the negative effects of corruption was shut down by the powers that be. The problem is now deeply ingrained into the national psyche. Some politicians and commentators even try to promote the perception that corruption is justified if enough people can get a slice of the pie. This attitude must be changed.

If you want proof of how bad the situation is, the latest figure from GFI has quantified the damages from illegal financial outflows at US$6.42 in just 10 years. Thailand could have been such a better nation if we had not allowed corruption to permeate every level of our society.

These illegal outflows rob the country of the opportunity to develop. As ACT executive member Thawatchai Yongkittikul has pointed out, "Illegal outflows of money are a great loss for the country. We have lost the opportunity to spend [this money] on national development…. Corruption, therefore, is a severe threat to the country." The private sector is thus calling for measures to curb illegal outflows and to prevent irregularities involving expensive government projects.

Thailand's ongoing and severe political division is caused largely by unequal access to opportunity. Massive corruption is a factor that obstructs progress and the need to spread the nation's wealth in a more balanced manner. As illegal outflows of money hit welfare, education and wealth distribution, Thailand will not be able to address the political and social question of "double standards". It is thus time to seriously combat corruption.

The magnitude of illegal activities and corruption has also raised the question of long-term economic and social stability in Thailand, because no country can progress in a sustainable way without justice in the system. Overall, the wealthier developed nations, as the survey has found, have better records when it comes to transparency in their economic and political systems. Talented people are encouraged to work hard and excel because they realise that they will not be robbed of opportunity because of unethical practices.

The latest findings from the international organisation should prompt us to change our attitude and strengthen the institutions that provide a check and balance, and which aim to eradicate illegal practices. Until this effort has been realised, Thailand is likely to come out on the list of shame year after year, at the expense of us all.

-- The Nation 2013-01-30

[noitom]

This sub head doesn't make sense -

"Annual losses due to graft and illegal economic activities could already have put Thailand well on the way to becoming a developed nation."

[dcutman]

illegal financial outflows at US$6.42 in just 10 years.

Actually the report says US$6.42 bill a year on average or US$64.2 bill over a 10 year period.

IF you compare Singapore to the SE Asian nations on the list, it is pretty obvious how this problem can effect a nations progress.

[arthurboy]

Ok, for over a week we have read various reports from the Nation and elsewhere concerning graft, corruption and illegal movements of money.

Ok, all well and good.

And now all that's needed is for the Thai authorities to start the appropriate legal and criminal law processes to finally rid Thailand of this cancer and imprison those responsible.

By the way, at lunchtime yesterday, I saw three policeman - in open view - receive a pay off from a vendor who sells copied dvds on the street and help themselves to a selection of their choice.

Work it out.

[LuckyLew]

And now all that's needed is for the Thai authorities to start the appropriate legal and criminal law processes to finally rid Thailand of this cancer and imprison those responsible.

By the way, at lunchtime yesterday, I saw three policeman - in open view - receive a pay off from a vendor who sells copied dvds on the street and help themselves to a selection of their choice.

Look like the 2nd paragraph I quoted explains why nothing gets done

The powers that be seem to be the ones involved in the less than legal activities

[kimamey]

This sub head doesn't make sense -

"Annual losses due to graft and illegal economic activities could already have put Thailand well on the way to becoming a developed nation."

I thought that as well but I think it means the money that was lost could have been used to put Thailand on the way to becoming a developed nation.

[Thai at Heart]

Money leaving the country to this amount? Don't you need a legitimate reason and permission from the banking authorities to move significant amounts?

I.e a company? so, in reality this is extremely simple to solve. I would reckon that the vast majority of graft money stays in the country to be laundered into real estate and land.

Anyone for a land tax? Oooops, can't say that. So unless people are going out of the country with suitcases full of money, this movement of money is already known.

Just imagine how strong the baht would be if this money hadn't left the country....

Edited January 30, 2013 by Thai at Heart

[dcutman]

Money leaving the country to this amount? Don't you need a legitimate reason and permission from the banking authorities to move significant amounts?

I.e a company? so, in reality this is extremely simple to solve. I would reckon that the vast majority of graft money stays in the country to be laundered into real estate and land.

Anyone for a land tax? Oooops, can't say that. So unless people are going out of the country with suitcases full of money, this movement of money is already known.

Just imagine how strong the baht would be if this money hadn't left the country....

According to the report, This is the preferred method of moving money undetected.

The research, conducted by GFI Lead Economist Dev Kar and GFI Economist Sarah Freitas, found that the illegal outflows—the proceeds of crime, corruption, and tax evasion—were largely due to a trade-based money laundering technique known as ‘trade misinvoicing ,’ which accounted for US$3.2 trillion, or 86.2%, of the total outflow of illegal capital over the 11 years studied.

[Buchholz]

Ok, for over a week we have read various reports from the Nation and elsewhere concerning graft, corruption and illegal movements of money.

Ok, all well and good.

And now all that's needed is for the Thai authorities to start the appropriate legal and criminal law processes to finally rid Thailand of this cancer and imprison those responsible.

All that was already started in "earnest" Nineteen Months Ago as an "urgent" policy of the Yingluck government...

Urgent Policies to be Implemented in the First Year

Earnestly prevent and fight against corruption in the public sector by adhering to transparency and good governance which are universally accepted norms to ensure the effective use of resources for national development and true benefits to the nation;

amend laws with a view to preventing and fighting against corruption;

broaden the enforcement of legislation regarding prohibition of conflicts of interest to include persons who abuse power arising from their important and high positions without exception;

rigorously enforce law to deal with corruption by government officers;

strengthen morals, ethics and good governance of state personnel;

and, foster consciousness and values of society which uphold integrity and justice.

http://www.thailandtoday.org/node/509

[Thai at Heart]

Money leaving the country to this amount? Don't you need a legitimate reason and permission from the banking authorities to move significant amounts?

I.e a company? so, in reality this is extremely simple to solve. I would reckon that the vast majority of graft money stays in the country to be laundered into real estate and land.

Anyone for a land tax? Oooops, can't say that. So unless people are going out of the country with suitcases full of money, this movement of money is already known.

Just imagine how strong the baht would be if this money hadn't left the country....

According to the report, This is the preferred method of moving money undetected.

The research, conducted by GFI Lead Economist Dev Kar and GFI Economist Sarah Freitas, found that the illegal outflows—the proceeds of crime, corruption, and tax evasion—were largely due to a trade-based money laundering technique known as ‘trade misinvoicing ,’ which accounted for US$3.2 trillion, or 86.2%, of the total outflow of illegal capital over the 11 years studied.

Precisely. So the vast majority of these transactions have been seen already by the authorities.

How does one invoice for fake louis vuitton handbags? The taxman and customs are the problem here, and the whole thing can be stopped in a moment.

However, start messing with this and you will involve everyone from the largest food exports to cars. They are all transfer priced to limit profits in Thailand.

Someone deemed this a legitimate model for years and years. So the issue isn't 500 baht or a cut on a construction contract, it is gargantuan transfer pricing.

Funny that, considering huge tracts of the Thai economy are off limits to foreignerd, it can't possibly be protected Thai business carrying out this dodge could it?

Edited January 30, 2013 by Thai at Heart

[hellodolly]

Money leaving the country to this amount? Don't you need a legitimate reason and permission from the banking authorities to move significant amounts?

I.e a company? so, in reality this is extremely simple to solve. I would reckon that the vast majority of graft money stays in the country to be laundered into real estate and land.

Anyone for a land tax? Oooops, can't say that. So unless people are going out of the country with suitcases full of money, this movement of money is already known.

Just imagine how strong the baht would be if this money hadn't left the country....

I have often wondered how much illegal money comes into the country.

[Thai at Heart]

Money leaving the country to this amount? Don't you need a legitimate reason and permission from the banking authorities to move significant amounts?

I.e a company? so, in reality this is extremely simple to solve. I would reckon that the vast majority of graft money stays in the country to be laundered into real estate and land.

Anyone for a land tax? Oooops, can't say that. So unless people are going out of the country with suitcases full of money, this movement of money is already known.

Just imagine how strong the baht would be if this money hadn't left the country....

I have often wondered how much illegal money comes into the country.

Probably not too much, laundering money here isn't worth it. You buy something, you lose control of it, i.e. land

Genuine fdi probably dwarfs illegal laundering.

Edited January 30, 2013 by Thai at Heart

[dcutman]

Money leaving the country to this amount? Don't you need a legitimate reason and permission from the banking authorities to move significant amounts?

I.e a company? so, in reality this is extremely simple to solve. I would reckon that the vast majority of graft money stays in the country to be laundered into real estate and land.

Anyone for a land tax? Oooops, can't say that. So unless people are going out of the country with suitcases full of money, this movement of money is already known.

Just imagine how strong the baht would be if this money hadn't left the country....

I have often wondered how much illegal money comes into the country.

Just enough to buy big fancy cars, houses and and extravagant shopping trips.

[noitom]

This sub head doesn't make sense -

"Annual losses due to graft and illegal economic activities could already have put Thailand well on the way to becoming a developed nation."

I thought that as well but I think it means the money that was lost could have been used to put Thailand on the way to becoming a developed nation.

Maybe you are right. But it is not up to us to try to "figure out" what the editors of a newspaper mean or intend.

[belg]

start to check government workers (police, others) that have 20.000 baht or so montly wage, driving with mercs and living in 30 million baht houses

[Thai at Heart]

Money leaving the country to this amount? Don't you need a legitimate reason and permission from the banking authorities to move significant amounts?

I.e a company? so, in reality this is extremely simple to solve. I would reckon that the vast majority of graft money stays in the country to be laundered into real estate and land.

Anyone for a land tax? Oooops, can't say that. So unless people are going out of the country with suitcases full of money, this movement of money is already known.

Just imagine how strong the baht would be if this money hadn't left the country....

I have often wondered how much illegal money comes into the country.

Just enough to buy big fancy cars, houses and and extravagant shopping trips.

That's generated and spent in Thailand. however just about anything military or imported for government use involves a nice wedge to Singapore or switzerland. Also, the booze and fags importers have to keep cutoms content.

Another one is companies paying for officials childrens overseas schooling.

Edited January 30, 2013 by Thai at Heart

[tragickingdom]

All these Nation editorials are nice but the bottom line is that it is the old money that is to blame. The people protected by the likes of the Nation newspaper. Their sacred institutions are all involved. When judges are exposed on Youtube the Nation is the fist to shut up. When the army is corrupted to the bone to a level that they are not even able to capture even by chance or accident bombmakers they keep silent. When Rohingya are trafficked the Nation comes up with a bogus forensic expert with strange hair who claims that Rohingya were trained by extremist because she figured out with a bogus bombscanner that explosive residue was on their boats. All the actions of the Nation editors are focused on keeping the people in power who are in charge for 100 years and who have stolen everything you can think of.

The damage done by the Nation reporting is therefore even bigger than the money lost because of corruption. The media keep crooks were they are.

[whybother]

All these Nation editorials are nice but the bottom line is that it is the old money that is to blame. The people protected by the likes of the Nation newspaper. Their sacred institutions are all involved. When judges are exposed on Youtube the Nation is the fist to shut up. When the army is corrupted to the bone to a level that they are not even able to capture even by chance or accident bombmakers they keep silent. When Rohingya are trafficked the Nation comes up with a bogus forensic expert with strange hair who claims that Rohingya were trained by extremist because she figured out with a bogus bombscanner that explosive residue was on their boats. All the actions of the Nation editors are focused on keeping the people in power who are in charge for 100 years and who have stolen everything you can think of.

The damage done by the Nation reporting is therefore even bigger than the money lost because of corruption. The media keep crooks were they are.

"the bottom line is that it is the old money that is to blame."

And there is no corruption in "new money"?

[rak sa_ngop]

There would also be a massive cost to the nation if you stopped all corruption.

Take for example the skytrain extension a few years ago. The track had been laid but the service was not started for about 2 years as the man in charge was afraid of awarding the signalling contract in case he was accused of taking bribes.

Corruption means that contracts get awarded and completed quickly so that everybody gets their share of the cake.

Not to mention the devastating impact on the tourist industry if the fake goods trade was stamped out. How would the police survive on their pitiful salaries (after paying for their own guns etc.).

[lannarebirth]

illegal financial outflows at US$6.42 in just 10 years.

Actually the report says US$6.42 bill a year on average or US$64.2 bill over a 10 year period.

IF you compare Singapore to the SE Asian nations on the list, it is pretty obvious how this problem can effect a nations progress.

Even the latter figure I'd say is conservative.

[clockman]

What do expect, when the country is controlled by Sino Thai people!

[dcutman]

illegal financial outflows at US$6.42 in just 10 years.

Actually the report says US$6.42 bill a year on average or US$64.2 bill over a 10 year period.

IF you compare Singapore to the SE Asian nations on the list, it is pretty obvious how this problem can effect a nations progress.

Even the latter figure I'd say is conservative.

Right you are. The report did mention all figures where extremely conservative.

[billd766]

Ok, for over a week we have read various reports from the Nation and elsewhere concerning graft, corruption and illegal movements of money.

Ok, all well and good.

And now all that's needed is for the Thai authorities to start the appropriate legal and criminal law processes to finally rid Thailand of this cancer and imprison those responsible.

All that was already started in "earnest" Nineteen Months Ago as an "urgent" policy of the Yingluck government...

Urgent Policies to be Implemented in the First Year

Earnestly prevent and fight against corruption in the public sector by adhering to transparency and good governance which are universally accepted norms to ensure the effective use of resources for national development and true benefits to the nation;

amend laws with a view to preventing and fighting against corruption;

broaden the enforcement of legislation regarding prohibition of conflicts of interest to include persons who abuse power arising from their important and high positions without exception;

rigorously enforce law to deal with corruption by government officers;

strengthen morals, ethics and good governance of state personnel;

and, foster consciousness and values of society which uphold integrity and justice.

http://www.thailandtoday.org/node/509

Ah but that was only an "election" promise and not necessarily the real thing.

[billd766]

All these Nation editorials are nice but the bottom line is that it is the old money that is to blame. The people protected by the likes of the Nation newspaper. Their sacred institutions are all involved. When judges are exposed on Youtube the Nation is the fist to shut up. When the army is corrupted to the bone to a level that they are not even able to capture even by chance or accident bombmakers they keep silent. When Rohingya are trafficked the Nation comes up with a bogus forensic expert with strange hair who claims that Rohingya were trained by extremist because she figured out with a bogus bombscanner that explosive residue was on their boats. All the actions of the Nation editors are focused on keeping the people in power who are in charge for 100 years and who have stolen everything you can think of.

The damage done by the Nation reporting is therefore even bigger than the money lost because of corruption. The media keep crooks were they are.

Sigh. Do you have ANY proof of what you have said?

If you do the make an appointment with the DSI who I am sure would love to know ALL about it just to add another hundred or so cases to the Democrats ever growing list.

I did hear a rumour that 80 years ago the power behind the power arranged for the Reichstag in Germany to be burnt down. Should I tell the DSI?

[Lucie]

I hate to say "I told you so"... but for years now, whenever a Thai person tells me that they are not as lucky as me because I come from a rich country, I tell them this:

You too come from a rich country - rich in resources, cultural heritage, etc - and the main reason that Thailand is not up there with more developed nations in terms of GDP, education, health, and any other indicator of development you can think of, is that Thailand squanders a huge percentage of its money on making rich people richer, and making important people feel more important.

I won't go on, because, like most of the commentators on here, I can only rant, as I can't see any practical way to begin tackling the problem - it is so much ingrained in the culture, and taking the corruption out of Thailand would change the country into somewhere completely unrecognisable.

[FarangTalk]

All these Nation editorials are nice but the bottom line is that it is the old money that is to blame. The people protected by the likes of the Nation newspaper. Their sacred institutions are all involved. When judges are exposed on Youtube the Nation is the fist to shut up. When the army is corrupted to the bone to a level that they are not even able to capture even by chance or accident bombmakers they keep silent. When Rohingya are trafficked the Nation comes up with a bogus forensic expert with strange hair who claims that Rohingya were trained by extremist because she figured out with a bogus bombscanner that explosive residue was on their boats. All the actions of the Nation editors are focused on keeping the people in power who are in charge for 100 years and who have stolen everything you can think of.

The damage done by the Nation reporting is therefore even bigger than the money lost because of corruption. The media keep crooks were they are.

Post of the week IMO.

[AleG]

All these Nation editorials are nice but the bottom line is that it is the old money that is to blame. The people protected by the likes of the Nation newspaper. Their sacred institutions are all involved. When judges are exposed on Youtube the Nation is the fist to shut up. When the army is corrupted to the bone to a level that they are not even able to capture even by chance or accident bombmakers they keep silent. When Rohingya are trafficked the Nation comes up with a bogus forensic expert with strange hair who claims that Rohingya were trained by extremist because she figured out with a bogus bombscanner that explosive residue was on their boats. All the actions of the Nation editors are focused on keeping the people in power who are in charge for 100 years and who have stolen everything you can think of.

The damage done by the Nation reporting is therefore even bigger than the money lost because of corruption. The media keep crooks were they are.

Post of the week IMO.

In the "Disturbingly Unhinged" category?

[kimamey]

This sub head doesn't make sense -

"Annual losses due to graft and illegal economic activities could already have put Thailand well on the way to becoming a developed nation."

I thought that as well but I think it means the money that was lost could have been used to put Thailand on the way to becoming a developed nation.

Maybe you are right. But it is not up to us to try to "figure out" what the editors of a newspaper mean or intend.

Well the way I see it the sentence is at first sight ambiguous but one of those interpretations wouldn't make sense so that points to the other. It's easy to think something then write it down and not notice the alternative interpretation as your mind already knows what it means. I suppose an editor should notice but then again this slight ambiguity is nothing compared to the other complete cock ups seen on here.

Of course I'm assuming here that it's the logical interpretation that was intended and NOT the completely nonsensical one.

[khunken]

All these Nation editorials are nice but the bottom line is that it is the old money that is to blame. The people protected by the likes of the Nation newspaper. Their sacred institutions are all involved. When judges are exposed on Youtube the Nation is the fist to shut up. When the army is corrupted to the bone to a level that they are not even able to capture even by chance or accident bombmakers they keep silent. When Rohingya are trafficked the Nation comes up with a bogus forensic expert with strange hair who claims that Rohingya were trained by extremist because she figured out with a bogus bombscanner that explosive residue was on their boats. All the actions of the Nation editors are focused on keeping the people in power who are in charge for 100 years and who have stolen everything you can think of.

The damage done by the Nation reporting is therefore even bigger than the money lost because of corruption. The media keep crooks were they are.

Post of the week IMO.

Monty Python still lives on.

As far as how graft money is transferred abroad the best person to ask is Mr T. When you can order a bank to provide & then increase a loan to a neighbour, how difficult was it to order a bank to make a billion or two morph into an offshore account?

[rheinwiese]

There is no genuine political will in Thailand to change the status quo and political will is paramount in any fight against corruption.

If political will implies, the zeal, the desire, the commitment to fight corruption, then it must start with genuine democratic reform, then, governments that rig elections all the time cannot fight corruption, because; electoral corruption is the root of all forms of corruption.

Ratifying international anticorruption treaties, creating national anticorruption commissions and national anticorruption strategies in themselves will not lead to any results, if much energy and resources are not invested in building genuine democratic institutions and a rule of law through which citizens can hold those in power accountable.

According to de Speville, there are seven essentials to fighting corruption:

1. Political will

2. Values clearly stated in law

3. A national anticorruption strategy - clear, concise and comprehensive

4. An effective mechanism for implementing it

5. Community support

6. Resources

7. Endurance

http://despeville.com/

But we all know this will never happen as long as money politics and a feudal culture dominate this country.