Bt2-trillion loan bill does not violate charter: Thai govt

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POLITICS
Bt2-trillion loan bill does not violate charter: Govt
The Nation


Phongthep: holding press conference.

BANGKOK: -- The government yesterday vowed to go ahead with the enactment of the Bt2-trillion loan bill, rejecting a legal-reform panel's claim that the bill is unconstitutional.

Deputy Prime Minister Phongthep Thepkanjana said the bill does not violate Article 169 of the Constitution as claimed on Wednesday by the Law Reform Commission of Thailand (LRCT) headed by former attorney-general Kanit na Nakorn.

"The bill does not violate the charter because the loans will not be state funds," Phongthep said. "Moreover, similar borrowing has been done by several governments - the Bt2-trillion bill will not be the first of its kind."

On Wednesday, Kanit told a press conference that the bill would definitely violate Article 169, which requires that state funds be disbursed in line with budgetary procedures. He reasoned that the Finance Ministry is a state agency and any loans it obtained should be regarded as state funds.

Kanit also warned that the bill would violate the people's rights, because parliamentarians, who represent the people, will not be allowed to monitor the spending on the transport-infrastructure projects for seven years.

The bill would empower the Finance Ministry to borrow Bt2 trillion, which would be off the budget, to implement transport infrastructure projects. Phongthep said it was not true that Parliament would not be able to monitor the spending.

"The legislative branch can ask questions or raise recommendations or submit motions to the government to answer. The opposition can even hold a no-confidence debate against the government regarding the spending," Phongthep said.

The deputy prime minister added that while the bill is being deliberated by the House of Representatives, it will already have been checked by the legislative branch.

"Although the coalition has a majority of MPs, there are also opposition MPs. The bill will also be checked by the Senate, and the government has no senators. So, the bill will be checked before the government will obtain the loans. The legislative branch will still be able to monitor it after the loans have been obtained," Phongthep said.

The bill has passed its first reading and is being vetted by a special House committee.

Chief coalition whip Udomdet Ratanasathien, a Pheu Thai MP from Nonthaburi, said the opinion of the LRCT would have no impact on the vetting of the bill, which is almost complete. But Udomdet said the government should heed the warning of the commission, which was set up by the government.

"I think the government should ponder and reach a decision on the opinion of the LRCT before the bill is sent back to the House for the second reading in about a month," Udomdet said.

Sanguan Pongmanee, a Pheu Thai MP from Lamphun, said the panel could only suggest legal reforms; it did not have the authority to change or improve the laws, which rested with Parliament.

While the LRCT was within its rights to comment on the constitutionality of the Bt2-trillion bill, it had no place evaluating whether the investments were worthwhile, the MP said.

Meanwhile, the so-called Group of 40 senators threatened to submit a petition to the Constitutional Court against the government if the Bt2-trillion bill clears Parliament.

"We believe the issue of the loans will become a cause that will topple the government. We believe the government cannot survive past April 2014," said Prasarn Maruekapitak, one of the 40 anti-government senators.


-- The Nation 2013-07-05

[Robby nz]

So it would now seem that getting hold of this money is more important than amnesty or bringing Thaksin back.

The reds will not like that, getting their big hero leader back is all that matters to them.

[Bluespunk]

"Kanit also warned that the bill would violate the people's rights, because parliamentarians, who represent the people, will not be allowed to monitor the spending on the transport-infrastructure projects for seven years."

Don't get me wrong, but is keeping the MPs away from this very large pork barrel such a bad thing?

[worgeordie]

So you need to borrow the money before its even needed,while

all the time paying interest !, yes thats the kind of idea you expect

from the Government ,Thailand's going to end up like Greece,Italy,

Spain, etc, up to eyes in debit.

regards Worgeordie

[drdoom6996]

So it would now seem that getting hold of this money is more important than amnesty or bringing Thaksin back.

The reds will not like that, getting their big hero leader back is all that matters to them.

Nothing, NOTHING, will be more important to the PTP than that free money. Not even Taksin.

[GeorgeO]

So now the government demonstrates its contempt for the legal system. This matter is far from over...!

[bigbamboo]

What is the point of a constitution when you can't get an agreement of the meaning of what it says?

[Robby nz]

Was wondering who they think is going to give them this 2,2 trillion Baht?

They have had to borrow the 324 billion for the flood thing from their own banks (the Thai people), presumably because no one else would lend it to them, or at least lend it to them at a reasonable rate.

For something that has no detailed planning or budget, is likely to face legal opposition, has no projection of future profit, has a 50 year repayment period and could easily be changed or scrapped completely if there were a change of Govt it doesn't look like a very wise investment.

If the thing did get built and was unlikely to turn a profit where would the money come from to repay the loan?

The Govt already has budget deficits to repay and the 324 billion is off budget but should still be repayed which the rice mountain obviously cant do.

[pedro01]

Was wondering who they think is going to give them this 2,2 trillion Baht?

They have had to borrow the 324 billion for the flood thing from their own banks (the Thai people), presumably because no one else would lend it to them, or at least lend it to them at a reasonable rate.

For something that has no detailed planning or budget, is likely to face legal opposition, has no projection of future profit, has a 50 year repayment period and could easily be changed or scrapped completely if there were a change of Govt it doesn't look like a very wise investment.

If the thing did get built and was unlikely to turn a profit where would the money come from to repay the loan?

The Govt already has budget deficits to repay and the 324 billion is off budget but should still be repayed which the rice mountain obviously cant do.

I would presume they have somebody in mind already.

I guess there's 2 questions that need to be answered....

1 - how will the loan be secured

2 - why not tell the people how the money will be spent in detail?

[OzMick]

Monies borrowed by the Finance Ministry are not state funds? So whose funds are they? Who makes the repayments, the fairies at the bottom of the garden?

[Sophon]

"Kanit also warned that the bill would violate the people's rights, because parliamentarians, who represent the people, will not be allowed to monitor the spending on the transport-infrastructure projects for seven years."

Don't get me wrong, but is keeping the MPs away from this very large pork barrel such a bad thing?

It's not about keeping government MPs away from having influence on how or where the money is spent, it's about making sure opposition MPs (and the public) have no way of monitoring what is happening to the funds.

Phongthep said it was not true that Parliament would not be able to monitor the spending.

"The legislative branch can ask questions or raise recommendations or submit motions to the government to answer. The opposition can even hold a no-confidence debate against the government regarding the spending," Phongthep said.

And we can all see how well that works with getting information on the spending in the rice subsidy scheme.

Sophon

[Neilly]

"We believe the issue of the loans will become a cause that will topple the government. We believe the government cannot survive past April 2014," said Prasarn Maruekapitak, one of the 40 anti-government senators.

The way they're going they'll be lucky to see August 2013 let alone April 2014

[Robby nz]

I would presume they have somebody in mind already.

I guess there's 2 questions that need to be answered....

1 - how will the loan be secured

2 - why not tell the people how the money will be spent in detail?

The answer to 1. is not so easy.

Could it be Rollers and all the other luxury cars owned by the PT gang, they probably have enough?

But no that's personal stuff it will have to be something that belongs to the tax payer.

Answer to 2. is no problem.

Because they don't know and don't care, all they want to do is lick the jam off the top then what's left can be spent on what ever contractors suggest.

[waza]

"We believe the issue of the loans will become a cause that will topple the government. We believe the government cannot survive past April 2014," said Prasarn Maruekapitak, one of the 40 anti-government senators.

Lets hope he is right.

[lungmi]

I don't believe future tellers, but the facts give him some credibility.

[Bagwan]

Was wondering who they think is going to give them this 2,2 trillion Baht?

They have had to borrow the 324 billion for the flood thing from their own banks (the Thai people), presumably because no one else would lend it to them, or at least lend it to them at a reasonable rate.

For something that has no detailed planning or budget, is likely to face legal opposition, has no projection of future profit, has a 50 year repayment period and could easily be changed or scrapped completely if there were a change of Govt it doesn't look like a very wise investment.

If the thing did get built and was unlikely to turn a profit where would the money come from to repay the loan?

The Govt already has budget deficits to repay and the 324 billion is off budget but should still be repayed which the rice mountain obviously cant do.

This is Thailand. Please suspend your sense of reality.

Thai Governments have all shared the mantra that my Thai family spouted before I arrived on their scene. Buddha will provide.

[geriatrickid]

I'm not qualified in Thai constitutional sufficient to opine whether it is legal or not.

However, I have some common sense and that makes me sufficiently qualified to believe that a government that borrows money in this quantum is neither thinking long term, nor fiscally responsible. Thailand should be showing restraint and not spending like a drunken sailor on shore leave in Pattaya.