Abhisit Firmly Rejects Govt's Bt2 Trillion Loans

[webfact]

Abhisit firmly rejects govt's Bt2 trillion loans
By Digital Media



BANGKOK, June 6 – The House scrutiny committee resolved today to abide by the original bill on Bt2 trillion loans for Thailand’s infrastructure development despite the opposition’s insistence that the mammoth borrowing could be slashed to Bt200 billion.

Democrat leader Abhisit Vejjajiva, a member of the opposition bloc scrutiny committee, proposed a severe spending cut and criticised the government for failing to give detailed investment plans for the seven-year project.

“It is unnecessary to issue a bill for the Bt2 trillion loans. The government will need only Bt300-400 billion per year (for infrastructure development) if it follows the normal budget allocation procedure,” he said.

He said “the loans bill allows the government to spend money without having to go through parliamentary scrutiny.”

Varathep Rattanakorn, PM’s Office Minister and vice chairman of the House scrutiny committee, said Mr Abhisit’s proposal (on detailed investment plans) was unnecessary as the loans bill was already passed in the first reading by the Lower House.

He gave assurances that the government will carefully spend the money and said that Mr Abhisit’s proposal to seek annual budgets for the purpose, instead of the Bt2 trillion in overall loans, could disrupt the projects’ continuity when a government changes.

Chaturon Chaisaeng, a scrutiny member in the government bloc, said it is impossible for the government to use the loans for other purposes as an appendix in the bill clearly states the projects to be carried out.

He said some of the projects lack details as investments will take several more years and approval will be required on a project-by-project basis. (MCOT online news)

-- TNA 2013-06-07

[Neilly]

He gave assurances that the government will carefully spend the money and said that Mr Abhisit’s proposal to seek annual budgets for the purpose, instead of the Bt2 trillion in overall loans, could disrupt the projects’ continuity when a government changes.

I wouldn't believe the xxxxxxx if they told me it was dark at night

Edited June 7, 2013 by metisdead

[bigbamboo]

And this Khun Yingluck is an example of why whenever on your 'Meet The Thai PM' tours you get around to asking host countries for investment money they seem less than forthcoming. It's not your charm that's lacking, it's just that no one trusts your government.

[Robby nz]

Let me try to get this straight in my head.

So the Govt wants to borrow 2.2 trillion Baht now or work that is said to take 7 years

The projects that money is for are in an appendix to the bill but as yet there are no details of those projects.

If there are no details then how can an accurate budget be worked out?

He gave assurances that the government will carefully spend the money

If the Govt had a record of careful spending it would make that one easier to believe.

could disrupt the projects’ continuity when a government changes.

That would appear to indicate an expectation of a change of Government in the life of the project, 7 years.

I would wonder if there were a change of Government in the life of the project how much of the 2.2 trillion would be left for an incoming Government?

He said some of the projects lack details as investments will take several more years and approval will be required on a project-by-project basis

If this is true then surely the budget for each project could be forwarded for approval along with the project when the details are finalized.

[JetsetBkk]

Let me try to get this straight in my head...

<snip>

Dear Robby, please stop trying to apply logic. You will only get a headache.

[Nickymaster]

He gave assurances that the government will carefully spend the money and said that Mr Abhisit’s proposal to seek annual budgets for the purpose, instead of the Bt2 trillion in overall loans, could disrupt the projects’ continuity when a government changes.

I wouldn't believe the feckers if they told me it was dark at night

Correct. So it comes down to "TRUST ME". And why shouldn't anybody trust PT? After all they already have successfully AND transparently spend a few hundred billion on the rice scheme..........

Edited June 7, 2013 by Nickymaster

[Nickymaster]

Thaksin and his PT partners must be laughing their a.. off. They have taken (from the tax payer) and wasted a few hundred billion with the rice scheme and know the are going to get another 2.2 trillion... Unbelievable. But... what can we say, they won the elections...

IMO they are really trying to destroy this country.

Edited June 7, 2013 by Nickymaster

[egro]

Varathep Rattanakorn, PM’s Office Minister and vice chairman of the House scrutiny committee, said Mr Abhisit’s proposal (on detailed investment plans) was unnecessary

He gave assurances that the government will carefully spend the money

As a convicted scammer AND fraudster, Varathep knows a thing or two about "carefully spending" money that is not his.

Varathep was convicted by the Supreme Court's Criminal Division for Political Office Holders in 2009 and sentenced to two years' imprisonment, but the punishment was suspended. He was charged with misconduct over the government lottery when he was a deputy finance minister in Thaksin's Cabinet.

http://www.nationmultimedia.com/politics/Varatheps-appointment-sets-off-legal-wrangling-30193454.html

The constitutional court on Wednesday banned the political party of former Prime Minister Thaksin Shinawatra after finding it guilty of election fraud. The court barred Thaksin and 110 other executives of the party [including Varathep] from participating in politics for five years

http://www.nytimes.com/2007/05/31/world/asia/31thailand.html?_r=0

[lemonjelly]

This bunch of Charlies will bring Thailand to it's knees and then start throwing human blood all over the place to try and fix it......

[Baerboxer]

Thaksin and his PT partners must be laughing their a.. off. They have taken (from the tax payer) and wasted a few hundred billion with the rice scheme and know the are going to get another 2.2 trillion... Unbelievable. But... what can we say, they won the elections...

IMO they are really trying to destroy this country.

I don't think they are trying to destroy the country. They are certainly robbing it blind and will continue to do so at every opportunity without any consideration for the consequences.

Should judgement day ever arrive, then enough will have been salted away offshore to facilitate absconding and buying citizenship of some other country with their investor class status. Bankers and politicians seem to enjoy freedoms and privelages the rest of us don't all over the world.

[GentlemanJim]

So, collect 2 Trillion at once, most of which you dont plan to spend for a few years anyway and pay top whack interest on it all from day 1. As many of the infrastructure projects will be out sourced internationally they will be charged for in foreign currency, take for example dollars. Guess what will happen to the value of that 2 Trillion when the ass inevitably falls out of the baht...it could easily depreciate 30%.

This is basic banking policy here, Abhisit is totally correct, why not take 300-400 Billion per year? This is fraud in the making, suddenly there will be no loss from the rice scam, and when these politicians cannot add up to 1.2 Billion without making a 100% error, what chance do they have of keeping track of 2 Trillion baht?

Makes me want to scream because nobody will do anything about it, and it means that I will not be able to raise my children here as they will end up paying this debt for 30 years. Aaaaaaaaaaaaaaaaagh!!! TFIF !

[Chrisswe]

Do anyone suspect anything else from the Bottleneck No 1 of Thailand!!

[waza]

Given this governments economic credential and it track record for corrupting massive amounts of public funds I wouldn't lend them a cent. Hopefully foreign investors will feel the same way. Having said this it is evident that without this loan the governments Ponzi scheme will collapse.

[GentlemanJim]

Given this governments economic credential and it track record for corrupting massive amounts of public funds I wouldn't lend them a cent. Hopefully foreign investors will feel the same way. Having said this it is evident that without this loan the governments Ponzi scheme will collapse.

100% Correct!

I wonder if all the economic masterminds at Moody's, Standard and Poor and Fitch see that as well

[ramrod711]

He gave assurances that the government will carefully spend the money

I certainly don't believe this government, but then i wouldn't believe any government of any country who said that.

[gerrythepoet]

Perhaps a benevolent military coup is in order but I doubt it for they probably have been guaranteed ? after 201

Anything can happen in 7 years and these projects are really about filtering away funds via studies and proposals and anything administrative rather than the nuts and bolts that one needs to see, feel like crying this is just total madness. Thais fight over anything trivial but something so important they cannot see how they are being hoodwinked, brainwashed and fed to the gutter.

[drdoom6996]

If they slashed it to 200 billion there would not be anything for PTP to steal.

[Tatsujin]

If it's 2 Trillion Baht, does the "you're my best friend" kickback rate get reduced at all or is it still at 20-30%?

[airconsult]

He's got one fair point however - certainty of the funds.

eg. What would have happened with Suvarnabhumi if the funds had not been fully provided upfront? As soon as the coup occurred, all work would have stopped.

Considering the record of Govt stability in Thailand, it's important for large projects to be fully funded when international participation is needed/wanted.

Cheers

[iancnx]

Lets hope and pray that a ratings downgrade will make it impossible to borrow such a huge amount.

[metisdead]

Off topic posts and replies have been removed.

[hellodolly]

"He said some of the projects lack details as investments will take
several more years and approval will be required on a project-by-project
basis. (MCOT online news)"

And in the mean time we pay interest on money not being used.

It is there just in case at a later date it is needed.

Does any one remember how far the Government was going to build the super fast trains before they stop and hopefully private enterprise steps in to complete the lines.

I believe the one to Chiang Mai was to be in three phases with the Government only paying for the first phase.

[hellodolly]

Given this governments economic credential and it track record for corrupting massive amounts of public funds I wouldn't lend them a cent. Hopefully foreign investors will feel the same way. Having said this it is evident that without this loan the governments Ponzi scheme will collapse.

100% Correct!

I wonder if all the economic masterminds at Moody's, Standard and Poor and Fitch see that as well

Moody's does and it has Yingluck running scared she actually got so upset over it she stormed out of a meeting and demanded her staff supply her with the true loss on the rice scam.

Wait for another photo op as she explains the loss being less than it is.

[belg]

just cut the crappy rice scam and save 300-400 billions

[teacherofwoe]

If Abhisit were still Prime Minister, would he reject B2 trillion loan or would he be licking his chops?

[bentleyboy]

This whole situation beggars belief, the country folk are being bribed with an unsustainable subsidy, while the folks at the high table are about to pull off the biggest heist in history, meanwhile the electorate sit by benignly like lambs to the slaughter...... wake up!!!!

[khunken]

He's got one fair point however - certainty of the funds.

eg. What would have happened with Suvarnabhumi if the funds had not been fully provided upfront? As soon as the coup occurred, all work would have stopped.

Considering the record of Govt stability in Thailand, it's important for large projects to be fully funded when international participation is needed/wanted.

Cheers

There is no evidence to suggest that funds for the Swampy construction would have been withheld by the coup-appointed government. In fact they would have had a better chance of looking into the corruption that was a substantial part of it. Overpriced scanners, one concessionaire to rip off travellers, car parking scams - to mention just a few of the scams associated with the airport.

There's nothing wrong with taking out a loan when you have a real project to be started. The 2.2tn approval is supposedly for all sorts of pie in the sky projects that no feasibility study has been made. At this stage they should be looking for loans for feasibility studies and detailed project planning which would come to a fraction of 2.2tn.

Just about 1 year ago the government enacted an emergency decree to obtain B350bn for flood mitigation projects. A tiny fraction has been spent and no major projects have yet been agreed. PTP's record of financial mismanagement (even leaving out corruption) is why anybody who pays tax and supports realistic development of the country - should be doing their best to prevent any more 'on the hoof' loans.

Edited June 7, 2013 by khunken

[JetsetBkk]

just cut the crappy rice scam and save 300-400 billions

All those rice farmers, their families, workers and friends... that's a lot of voters. They'll never scrap it.

[rametindallas]

"He said some of the projects lack details as investments will take

several more years and approval will be required on a project-by-project

basis. (MCOT online news)"

And in the mean time we pay interest on money not being used.

It is there just in case at a later date it is needed.

Does any one remember how far the Government was going to build the super fast trains before they stop and hopefully private enterprise steps in to complete the lines.

I believe the one to Chiang Mai was to be in three phases with the Government only paying for the first phase.

The government is only going to build the first phase because you can not build HSR in the mountains at an affordable cost.

[itchybum]

'He gave assurances that the government will carefully spend the money'

I feel better about it all already.