70 blacklisted rice mills allegedly in Thai rice pledge scheme

[webfact]

70 blacklisted rice mills allegedly in rice pledge scheme
By English News



BANGKOK, July 13 - Seventy-seven blacklisted rice mills were permitted to participate in the government's rice pledging scheme, it was disclosed by a House special committee considering the 2014 budget bill.

Watchara Petchthong, committee spokesman said he was assigned to inspect two rice mills in the central province of Sukhothai, formerly blacklisted, but they were later allowed to join the government’s rice scheme.

The rice mills obstructed the inspection. It is suspected that the rice mill owners and some government officials have shared vested interests.

Mr Watchara said the committee asked the Public Sector Anti-Corruption Commission, the Anti-Money Laundering Office, the Electricity Generating Authority of Thailand, the Revenue Department and the Provincial Electricity Authority to probe financial transactions and power bills of the two rice mills since 2007 and to check whether there was rice stored in the warehouses or not.

The two rice mills probably cost losses of 642 million baht to the state, Mr Watchara said. (MCOT online news)


-- TNA 2013-07-13

[NongKhaiKid]

Blacklisted but allowed to participate, says it all really but what else is to be expected ?

[kurnell]

Any way to shift the blame

[chooka]

Blacklisted but allowed to participate, says it all really but what else is to be expected ?

well if they are owned by government officials what more can be said. Sort of like the blacklist you have when you don't have one.

[chooka]

"The two rice mills probably cost losses of 642 million baht to the state, Mr Watchara said".

So if these two mills alone have cost 642 million in loses what about the other 70 blacklisted mills and the hundreds of other Mills? Just how high is the ceiling on all losses? It would have to be trillions lost to corruption and other assorted scams.

This project was doomed from day one and in any normal country if a government acted like this and poured billions of the countries money down the toilet it would be removed from office.

While all this money is be flushed away the baht keeps rising why is that?

Edited July 13, 2013 by chooka

[OzMick]

Yingluk,

Your loveliness goes on and on, yes it does.

[Songhua]

Convenient. The blacklisted ones have caused the losses and are the root of all evil.

[Ricardo]

Blacklisted but allowed to participate, says it all really but what else is to be expected ?

Wonder what the 'administration-fee' is, to get a blacklisted mill de-listed, by the authorities ?

[caykay]

And what is to be done? Nothing!

[NeverSure]

While all this money is be flushed away the baht keeps rising why is that?

Currency exchange markets work on supply and demand just like most other things. Thailand is paying a relatively high rate of interest on its bonds to finance its debt and deficits. In order to buy a Thai bond, you have to first buy baht. So you exchange your county's currency for baht, driving down your country's currency value and raising the value of the baht.

First world countries are mostly holding interest rates very low to keep the value of their currencies low to help their exports. Thailand is between a rock and a hard place because it needs to borrow a lot of money, paying relatively high interest rates, but the buying of baht to buy the bonds is holding up the value of the baht and hurting exports.

Thai banks are also paying fairly high interest rates to attract deposits to cover loans they've made, further causing people to buy baht to deposit to get that interest rate.

Thailand has lost the ability to control the value of the baht. The only thing that would change that would be a public perception that Thailand is in trouble followed by a big selling of baht to convert to another nation's currency.

[NeverSure]

By piecing together many articles we've had here for the past couple of months, it is apparent that the government borrowed 500 billion baht initially for the rice scheme, and then had to borrow another 200 bil. They took 100 bil baht of the Ag Bank's capital making the spending so far 800 billion baht. With the next harvest coming, the total spent should be around 1 trillion baht for the rice scheme.

This money is borrowed with the rice as collateral, so it doesn't show as an expense or a loss on paper. It doesn't show as part of the government's debt or deficits.

When the chickens come home to roost, Thailand can't raise the money to pay for this. Then what, when 1 tril is owed to a government owned ag bank which has capital of its own of only 100 bil baht?

[ezzra]

Yingluk,

Your loveliness goes on and on, yes it does.

I would share your sentiments except that she is nothing but a puppet on a string,

a rag doll, being enabled and ordered around by the puppet master, Mr. T.

all of Thailand knows it, all the world knows that, and the charade keeps

going on....no shame

[Ricardo]

PM-Yingluck must be starting to regret having demanded recently, that anyone with evidence of corruption in her government's rice-pledging-scheme, should present it ?

There has been a stream of news like this item, ever since !

So, when will she now take public action, to fight the demon corruption ... ... ... silence descends ... ...

Edited July 13, 2013 by Ricardo

[drdoom6996]

Blacklisted but allowed to participate, says it all really but what else is to be expected ?

Pay to play!

[allan michaud]

Blacklisted but allowed to participate, says it all really but what else is to be expected ?

Wonder what the 'administration-fee' is, to get a blacklisted mill de-listed, by the authorities ?

I don't think the standard Thai brown envelope would suffice, maybe a rice sack.

So if 2 caused 642mill in loses, can we expect to find that the rest cost the same, for a nice total of 22 billion baht?

I reckon a good starting point to find out who's had their hand in the cookie jar would be to get a list of who bought a high end luxury car over the past 2 years.

[nycjoe]

The type A sociopaths rise to the top all the time in every country. Shakespeare was right the first thing we do is ...............

[Tatsujin]

Anyone want to lay bets on who "actually" owns these mills and others?

[Thai at Heart]

Blacklisted but allowed to participate, says it all really but what else is to be expected ?

Wonder what the 'administration-fee' is, to get a blacklisted mill de-listed, by the authorities ?

Imagine how bad they must have been to get listed in the first place. Ever heard of anything being blacklisted in Thailand before?

[belg]

hub of corruption

so those 77 should be put out of business but some good old connection keeps the money running in

nice !

[NongKhaiKid]

Anyone want to lay bets on who "actually" owns these mills and others?

Do you think a certain monk's name might come up ?

[Neilly]

The rice mills obstructed the inspection. It is suspected that the rice mill owners and some government officials have shared vested interests.

'It is suspected' ??? Captain Obvious strikes again

[OzMick]

I would have thought that the 77 mills previously blacklisted for shonky practises would have been the first enrolled. Easier than corrupting someone ostensibly honest.

[spidermike007]

How does one go about opening a rice mill? A 642 million baht subsidy is sounding very nice, right about now. Any potential partners?

[AnotherOneAmerican]

While all this money is be flushed away the baht keeps rising why is that?

Currency exchange markets work on supply and demand just like most other things. Thailand is paying a relatively high rate of interest on its bonds to finance its debt and deficits. In order to buy a Thai bond, you have to first buy baht. So you exchange your county's currency for baht, driving down your country's currency value and raising the value of the baht.

First world countries are mostly holding interest rates very low to keep the value of their currencies low to help their exports. Thailand is between a rock and a hard place because it needs to borrow a lot of money, paying relatively high interest rates, but the buying of baht to buy the bonds is holding up the value of the baht and hurting exports.

Thai banks are also paying fairly high interest rates to attract deposits to cover loans they've made, further causing people to buy baht to deposit to get that interest rate.

Thailand has lost the ability to control the value of the baht. The only thing that would change that would be a public perception that Thailand is in trouble followed by a big selling of baht to convert to another nation's currency.

The banks/countries about to go bust always offer the highest interest rates.

Iceland, Cyprus, etc.

Thailand is next on the list (maybe Australia too)

[Damaz6052]

Blacklisted but allowed to participate, says it all really but what else is to be expected ?

Every man for themselves in this country!

[indyuk]

Almost everyone and organisation in the rice business is corrupt ranging from the Rice Farmer up. The rice farmer's gains from corruption is thought to be minimal and for the most part seek to nullify the fraud of the Rice Mills. It is beween the mill and the wharehousing that serious corruption takes place. If polititions participate in wharehousing of rice or it milling, it should be easy to discover sicne they will have registered so when elected.

The issue of corruption blights all of the Wharehousing systems in Thailand including. Sugar, Palm Oil, Cassava, Rubber.

If this matrix of corruption is organised by politcians in government or in opposition or if in unellected time-out, such corruption must be defended by their benifacors. Who are the benifactors (defenders)? They cannot be from one party. The benefactors may extend through all Hi-So organisations and people. Could the invisable man be an issue here?

Would this be the case corruption would continue into the future unless the government of the day beat it out of the system. That no doubt lead to many contract killings and years of increased instability.

One thing for sure is that the Red Shirts cannot be responsible for such an organised rape of goverment agri-resources. This is simply because they have not been in government before and there cannot have contributed to such a carefully organised crime system or such a nationwide wide conspiracy.

That the Red Shirts might be benefactors now, that a goverment that is sensitive to their expectations is in power, is also a possibility.

Edited July 13, 2013 by indyuk

[Baerboxer]

Almost everyone and organisation in the rice business is corrupt ranging from the Rice Farmer up. The rice farmer's gains from corruption is thought to be minimal and for the most part seek to nullify the fraud of the Rice Mills. It is beween the mill and the wharehousing that serious corruption takes place. If polititions participate in wharehousing of rice or it milling, it should be easy to discover sicne they will have registered so when elected.

The issue of corruption blights all of the Wharehousing systems in Thailand including. Sugar, Palm Oil, Cassava, Rubber.

If this matrix of corruption is organised by politcians in government or in opposition or if in unellected time-out, such corruption must be defended by their benifacors. Who are the benifactors (defenders)? They cannot be from one party. The benefactors may extend through all Hi-So organisations and people. Could the invisable man be an issue here?

Would this be the case corruption would continue into the future unless the government of the day beat it out of the system. That no doubt lead to many contract killings and years of increased instability.

One thing for sure is that the Red Shirts cannot be responsible for such an organised rape of goverment agri-resources. This is simply because they have not been in government before and there cannot have contributed to such a carefully organised crime system or such a nationwide wide conspiracy.

That the Red Shirts might be benefactors now, that a goverment that is sensitive to their expectations is in power, is also a possibility.

Wow - the 'invisible man" and I thought H.G.Wells' novel was just fiction (like this post). Wonder if he wears bandages, sunglasses and a trilby when he's not been invisible like the T V series?

[sailblue]

Corruption is so "normal" and everyone is involved, so there is not anyone clean to "throw the first stone".

In clean countries if you earned a good salary ( politician ) but had assetts the size of a corporation, the tax man would be asking where they came from, and you would have to show exactly where, and how, and the taxes paid along the way.

They all have luxury cars ( a few ) and loads of cash under the bed. Should check how many have luxury houses in London or Australia where they are allowed to buy. Likely in the drivers/house maids name.

One thing, they, like Taksin, feel invincible so very little effort to hide things. A decent detective would have all this money tracked down in a month. Start with the top secret sales with hundreds of checks, everyone got a few bucks to shut up.

[hellodolly]

PM-Yingluck must be starting to regret having demanded recently, that anyone with evidence of corruption in her government's rice-pledging-scheme, should present it ?

There has been a stream of news like this item, ever since !

So, when will she now take public action, to fight the demon corruption ... ... ... silence descends ... ...

Yes she has demanded people with evidence come forward.

That way she knows who to start a committee to investigate.

She already knows who and where the corruption is now she is seeking out the people who can prove it so she can find a way to discredit them.

[SICHONSTEVE]

Blacklisted but allowed to participate, says it all really but what else is to be expected ?

The potential towards being blacklisted must fill them with fear (or maybe not)!!!

I would like to know the reasons behind their blacklisting and also why it doesn't seem to matter a jot if they are.