Commerce Ministry lambasted for corruption in rice purchases

[webfact]

Commerce Ministry lambasted for corruption in rice purchases
By English News



BANGKOK, July 3 Corruption has penetrated every step of the governments rice purchase scheme as the Commerce Ministry has refused to disclose information on rice sales, according to a senior Finance Ministry official.

Deputy permanent secretary for finance Supa Piyajitti told a Senate committee that corruption was involved from the first stage of farmers registration to reports on rice volume which were falsified.

The Senate standing committee on economic, commerce and industry invited Ms Supa to give an account on the rice pledging scheme in her capacity as chairwoman of the Finance Ministrys sub-committee tasked with the scheme's account assessment.

She said only 10 per cent of rice in the governments stockpiles had been randomly checked due to lack of manpower, adding that rice sold under the scheme was rotated at some rice mills.

Total losses from the states rice subsidy scheme from 2004 to 2013 which included 14 harvest seasons were as high as Bt378 billion while losses in the last three seasons, between 2011 and 2013, were Bt221 billion.

As of January 31 this year, the government has spent more than Bt496 billion for the rice purchase programme which has to be paid to the Bank of Agriculture and Agricultural Cooperatives, Ms Supa explained.

The governments report of 11 million tonnes of rice in its stockpiles contradicted the figure of 18 million tonnes given by the Marketing Organisation for Farmers and the Public Warehouse Organisation, she told the committee.

Ms Supa said she had asked the Commerce Ministry for the figure of rice sales but was told that it was confidential.

They told me that only three persons the commerce minister, permanent secretary for commerce and director general of the Foreign Trade Department had access to the figure, Ms Supa said.

We could not pursue our accounting to close entries and we do not know to whom the 10 million tonnes of rice were sold.

A standing committee member, Mahannop Dejvitak, said the government lacked corruption prevention measures and some lots of rice were resold to make double profits from the pledging scheme.

The rice storage standard was poor, resulting in deteriorating quality, he said. (MCOT online news)


-- TNA 2013-07-03

[robblok]

As I have said before the Democrats might have had some corruption (I am sure of it) but the PTP really robs the country blind. Not surprising if you look who their real leader is. Too bad they never punish the people who commit this fraud and let them pay it back and put them in jail. Ill go back to sleep dreaming hoping the populace ever wakes up.

Edited July 3, 2013 by robblok

[Nickymaster]

Since there is nothing urgent that has to be done in Thailand, PM Yingluck is packing her bags to go on a very important trip to Turkey and Poland.

[OzMick]

B378 billion, and snowballing. The best people to destroy corrupt politicians are honest public servants - go girl!

[Pib]

On a corruption, bad program, tax money going down the drain, etc., scale of 1 to 10 with a 10 being the absolute worst, this rice purchase scheme just may turn out to be the example for a 10 rating. I can understand why the rice farmers like it, but it sure appears to be a bad program for the nation as a whole.

[Neilly]

Deputy permanent secretary for finance Supa Piyajitti told a Senate committee that corruption was involved from the first stage of farmers registration to reports on rice volume which were falsified.

At last someone willing to stand up and call it like it is

[waza]

"As of January 31 this year, the government has spent more than Bt496 billion for the rice purchase programme which has to be paid to the Bank of Agriculture and Agricultural Cooperatives, Ms Supa explained............The governments report of 11 million tonnes of rice in its stockpiles"

My calculators says that's 45090 baht per tonne, but that cant be right, and the good news keeps rolling in.....

"Total losses from the states rice subsidy scheme from 2004 to 2013 which included 14 harvest seasons were as high as Bt378 billion while losses in the last three seasons, between 2011 and 2013, were Bt221 billion......Ms Supa said she had asked the Commerce Ministry for the figure of rice sales but was told that it was confidential..........the government lacked corruption prevention measures and some lots of rice were resold to make double profits from the pledging scheme..........The rice storage standard was poor, resulting in deteriorating quality,

[soi41]

Ms Supa Respect!

But I am afraid, part of your jobdescribtion as "permanent secretary" is going to change very soon. Secretary yes, but permanent no.

Maybe a new desk at the Ministery of Labor!

[greg71]

Just a matter of time until he is moved to one of the many inactive posts we often hear about .

[OzMick]

Perhaps the new commerce minister will give the finance ministry the "confidential" figures they need for a full accounting. Perhaps not.

[MaxLee]

Too late, the bribery money has been quickly transferred under the red table into the pockets of the greedy Pheu Thai Government swines, out to Dubai...

[Thaddeus]

The governments report of 11 million tonnes of rice in its stockpiles contradicted the figure of 18 million tonnes given by the Marketing Organisation for Farmers and the Public Warehouse Organisation, she told the committee.

Has that missing 2.5 million tonnes suddenly become 7 million.

[Thai at Heart]

The governments report of 11 million tonnes of rice in its stockpiles contradicted the figure of 18 million tonnes given by the Marketing Organisation for Farmers and the Public Warehouse Organisation, she told the committee.

Has that missing 2.5 million tonnes suddenly become 7 million.

Oooops

[Thai at Heart]

The governments report of 11 million tonnes of rice in its stockpiles contradicted the figure of 18 million tonnes given by the Marketing Organisation for Farmers and the Public Warehouse Organisation, she told the committee.

Has that missing 2.5 million tonnes suddenly become 7 million.

Oooops

[chainarong]

Deputy permanent secretary for finance Supa Piyajitti told a Senate committee that corruption was involved from the first stage of farmers registration to reports on rice volume which were falsified.

At last someone willing to stand up and call it like it is

I think you are right , just how long this uncorrupted Mr Supa Piyajitti survives is anybody's guess.

[kimamey]

B378 billion, and snowballing. The best people to destroy corrupt politicians are honest public servants - go girl!

Of course the B378 billion is from 2004 to 2013 and any type of subsidy will lose money. If it didn't there wouldn't be any point in it. What these figures show is that this government has managed to push the losses to a much higher level than ever before.

Well done to Supa Piyajitti.

[Ricardo]

The governments report of 11 million tonnes of rice in its stockpiles contradicted the figure of 18 million tonnes given by the Marketing Organisation for Farmers and the Public Warehouse Organisation, she told the committee.

Has that missing 2.5 million tonnes suddenly become 7 million.

Hub of rounding-errors ?

[bigbamboo]

She is a brave lady but I hope she remembers whistle blowers are an endangered species in Thailand.

[Orac]

Just a matter of time until he is moved to one of the many inactive posts we often hear about .

It was reported in May that she was being moved possibly due to leaking information

Though no individual was named in association with the leaked report, Ms Supa Piyajitti was yesterday (May 27, 2013) removed from her role overseeing the debts and expenses group and placed in charge of the Office of the Permanent Secretary and the Fiscal Policy Office.

http://www.establishmentpost.com/thailand-rice-pledging-scheme-leak-sees-finance-secretary-moved/

[monkeycountry]

"Ms Supa said she had asked the Commerce Ministry for the figure of rice sales but was told that it was confidential.
...
We could not pursue our accounting to close entries and we do not know to whom the 10 million tonnes of rice were sold."

Are these "special" accounting/auditing rules reserved for the government, or can private companies follow them as well?

Obviously most, if not all, companies would love to mark some of their heavier entries (especially sales figures) as confidential and leave them out of their balance sheets!

Edited July 3, 2013 by monkeycountry

[Robby nz]

It would seem she has been ordered to appear before a Senate committee to answer questions on the rice situation from the point of view of the Finance Ministry.

That being the case she was probably under oath and had 2 choices.

She could have concocted numbers to try to make the whole thing look good.

Or she could tell the truth.

Had she cooked the books she could well have been caught out as I suspect the senators would already have had a very good idea of what was going on and she would no doubt have had a good idea what could happen to her if she was caught trying to BS the committee..

Probably the safest thing for her was the truth even though it could cost her her job.

[slapout]

Just a quick recap of numbers thrown about

1700 up to 2700 warehouses are storing rice grain, paddy, in sacks /boxes as well as in bulk storage.

There is 11 million tons, 17 million, give or take a few million, or the BAAC figure of 28 million

Reported cost to store grain has varfied from 3 baht to 800 baht per ton per month or per year, another security matter???

Inspection of all stocks show no problem in quality, this is refuted by 10% inspection, 2000 of 2700 warehouses, or a buyer who rejected 30% of a delivery. they received

Sales of rice are 6 million, or 8 million but its really a top secret, national security matter, so it can't be released to the public.

The time frame for transport from mill to warehouse is 7 days (pointed out as too much time, thus changed to 50 days)

transport losses of 15% for paddy, and 10% for grain allowed to determine acceptable figure for perment storage Note change to 50 above.

Warehouse storage is secure, subsquently camera monitoring and policeman were assigned to monitor the strorage of national security product.

No evidence of corruption founmd, or corruption at every step,

BAAC refused more budget for program, reversed, price for standad rice reduced, reversed, time frame for program, extended, reduced, somewhat in limbo

After 5 cabinet reshffles, during this programs implementation, dozens of civil employees, at least 4 ministers times 5, and their gophers,, the PM, local government involvement, as near as I can tell, there is still no one in charge.

[AleG]

Just a quick recap of numbers thrown about

1700 up to 2700 warehouses are storing rice grain, paddy, in sacks /boxes as well as in bulk storage.

There is 11 million tons, 17 million, give or take a few million, or the BAAC figure of 28 million

Reported cost to store grain has varfied from 3 baht to 800 baht per ton per month or per year, another security matter???

Inspection of all stocks show no problem in quality, this is refuted by 10% inspection, 2000 of 2700 warehouses, or a buyer who rejected 30% of a delivery. they received

Sales of rice are 6 million, or 8 million but its really a top secret, national security matter, so it can't be released to the public.

The time frame for transport from mill to warehouse is 7 days (pointed out as too much time, thus changed to 50 days)

transport losses of 15% for paddy, and 10% for grain allowed to determine acceptable figure for perment storage Note change to 50 above.

Warehouse storage is secure, subsquently camera monitoring and policeman were assigned to monitor the strorage of national security product.

No evidence of corruption founmd, or corruption at every step,

BAAC refused more budget for program, reversed, price for standad rice reduced, reversed, time frame for program, extended, reduced, somewhat in limbo

After 5 cabinet reshffles, during this programs implementation, dozens of civil employees, at least 4 ministers times 5, and their gophers,, the PM, local government involvement, as near as I can tell, there is still no one in charge.

What's that term? Omnishambles?

I have the feeling that if, or when, the lid on the secretive G2G deals is popped the level of corruption of this scheme will soar to new heights.

[TomTao]

On a corruption, bad program, tax money going down the drain, etc., scale of 1 to 10 with a 10 being the absolute worst, this rice purchase scheme just may turn out to be the example for a 10 rating. I can understand why the rice farmers like it, but it sure appears to be a bad program for the nation as a whole.

If only the people would wake up and smell the manure that has been built into a wall around this scheme, if enough woke up and realised that more is being taken out of thier pockets than is being put in, then perhaps they wouldn't be so complacent about the whole issue.

[gabruce]

B378 billion, and snowballing. The best people to destroy corrupt politicians are honest public servants - go girl!

Of course the B378 billion is from 2004 to 2013 and any type of subsidy will lose money. If it didn't there wouldn't be any point in it. What these figures show is that this government has managed to push the losses to a much higher level than ever before.

Well done to Supa Piyajitti.

and of course before the current scheme the total losses (378-221) were 157 billion over 7 years - so roughly 20 billion a year as opposed to 110 billion a year for Pheu Thai - and counting as the final losses aren't yet known. I believe that 3 of those years were under the Thaksin administration (2004, 2005, 2006). It would be interesting to see if the losses vary from year to year.

[Ricardo]

B378 billion, and snowballing. The best people to destroy corrupt politicians are honest public servants - go girl!

Of course the B378 billion is from 2004 to 2013 and any type of subsidy will lose money. If it didn't there wouldn't be any point in it. What these figures show is that this government has managed to push the losses to a much higher level than ever before.

Well done to Supa Piyajitti.

and of course before the current scheme the total losses (378-221) were 157 billion over 7 years - so roughly 20 billion a year as opposed to 110 billion a year for Pheu Thai - and counting as the final losses aren't yet known. I believe that 3 of those years were under the Thaksin administration (2004, 2005, 2006). It would be interesting to see if the losses vary from year to year.

Just to point out that 2008 was also under Thaksin-serving administrations too.

[Mosha]

The governments report of 11 million tonnes of rice in its stockpiles contradicted the figure of 18 million tonnes given by the Marketing Organisation for Farmers and the Public Warehouse Organisation, she told the committee.

Has that missing 2.5 million tonnes suddenly become 7 million.

It was originally 8.

[Mosha]

Will the next fall guy please present himself?

[NeverSure]

Even if the figures of losses were true, they don't account for rice that is spoiled. It's pretty obvious that no one knows how much rice is missing.

Just adding up numbers from other news stories we've had here over time, The original loan from the Ag Bank was 500 bil. Then they needed another 200 bil. Then they robbed the Ag Bank's capital of 100 bil, cutting its capital from 200 to 100 bil.

So a bank with only 100 bil in capital has a loan of 700 bil for the rice scheme, and that doesn't pay for this next harvest.

Counting the 100 bil that was depleted from the bank's capital, and the loans of 500 bil and 200 bil, and the next harvest, I can't see how this is less than 1 trillion baht, less any good rice that might be sold to help pay the loan back. Of course much of that rice is either rotting or stolen.

This is big enough to bankrupt the country because it is a current debt, payable now. If the IMF or Moodys FINALLY figures it out, Thailand is toast.

[Dap]

Ms Supa Respect!

But I am afraid, part of your jobdescribtion as "permanent secretary" is going to change very soon. Secretary yes, but permanent no.

Maybe a new desk at the Ministery of Labor!

They already fired her once when she reported the heavy losses but were then forced to reinstate her.