Rungson vows to review rice scheme loss
SUPHANNEE POOTPISUT
THE SUNDAY NATION

BANGKOK: -- The man set to become the new permanent secretary at the Finance Ministry says he will review the amount lost under the government's controversial rice-pledging scheme.

Rungson Sriworasat, acting permanent secretary of the Finance Ministry, said that he did not believe the loss would be as high as Bt200 billion a year, as concluded a ministry audit committee, headed by deputy permanent secretary Supa Piyajitti.

He said that he would also replace Supa as chair of the audit team. He denied Supa was removed, saying that she would still work with him. But that as the permanent secretary, he should be in charge of the audit committee.

"As someone with a background in accounting and a director of the Bank for Agriculture and Agricultural Cooperatives for eight years, I don't think the loss is that high," Rungson said.

"We will have to review the audit committee's report to see if a loss of Bt200 billion a year is correct," he said.

Rungson said that with a simple calculation, he believed the loss should be "only Bt36 billion" a year. He explained that under the scheme the government offered Bt15,000 for every tonne of rice, compared to the market price of Bt12,000, which meant a loss of Bt3,000 a ton. And the government had about 12 million tonnes of rice in its stockpiles and the loss would be about Bt36 billion.

The Cabinet earlier this month appointed Rungson as acting permanent secretary for finance, and he is expected to become the new permanent secretary.

On Monday, the Finance Ministry put the annual losses from the rice-pledging scheme |in the vicinity of Bt200 billion after wrapping up its audit. The audit report from Supa's committee was signed by former permanent secretary Areepong Bhoocha-oom, who was transferred to the post of secretary-general of the Public Sector Development Commission.

His transfer followed allegations that he was unable to control Finance Ministry officials who repeatedly expressed concerns over the scheme's impact on the national fiscal position.

-- The Nation 2013-10-27

Smoke and mirrors! without transparency, how can anybody. Know!

"he did not believe the loss would be as high as Bt200 billion a year, as concluded a ministry audit committee"

Sound's like he's already made up his mind...

There are only 12 million tonnes currently in stockpiles. What about the rest that has been bought and sold, and storage costs, and loss due to damage, and plenty of other issues.

Just the fact that he has already come up with a dodgy number speaks of the whitewash coming.

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"he did not believe the loss would be as high as Bt200 billion a year, as concluded a ministry audit committee"

Sound's like he's already made up his mind...

Most certainly. He's was a cabinet appointment to an acting post which is about to become permanent.

There's no way the government would appoint someone who wasn't on board and no way will he risk losing a permanent post.

Another lackey rewarded

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There are only 12 million tonnes currently in stockpiles. What about the rest that has been bought and sold, and storage costs, and loss due to damage, and plenty of other issues.

Just the fact that he has already come up with a dodgy number speaks of the whitewash coming.

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I used GOOGLE and the current price per tonne of rice is 2500 baht. So there is a HUGE discrepency here and Yes I agree the whitewash has already begun.

12million x 9500 difference on world price is 114 000 000 000 (114 Billion baht) and the 12 million tonnes is probably what is left that is SALEABLE. Remember Thailand has NOT been able to move rice for nearly 2 years in quantities they previously sold. So he is using old figures. I guess he went to a Thai public school.

If I was Thaksin I would bring in a spin doctor to do a bit of creative arithmetic, to buy more time, to get the 2.2 trillion baht loan signed and sealed. Oops he did.

There are only 12 million tonnes currently in stockpiles. What about the rest that has been bought and sold, and storage costs, and loss due to damage, and plenty of other issues.

Just the fact that he has already come up with a dodgy number speaks of the whitewash coming.

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I used GOOGLE and the current price per tonne of rice is 2500 baht. So there is a HUGE discrepency here and Yes I agree the whitewash has already begun.

12million x 9500 difference on world price is 114 000 000 000 (114 Billion baht) and the 12 million tonnes is probably what is left that is SALEABLE. Remember Thailand has NOT been able to move rice for nearly 2 years in quantities they previously sold. So he is using old figures. I guess he went to a Thai public school.

This (http://www.indexmundi.com/commodities/?commodity=rice&months=60) is showing about $470 / THB 14000 - for white milled rice, not paddy. Where did you see 2500 baht?

Welcome to Lala land

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There are only 12 million tonnes currently in stockpiles. What about the rest that has been bought and sold, and storage costs, and loss due to damage, and plenty of other issues.

Just the fact that he has already come up with a dodgy number speaks of the whitewash coming.

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That he forgets about any losses on the rice previously purchased, and 'disappeared' from the warehouses or resold again already, demonstrates his total lack-of-understanding & inability to do a senior job at the Finance Ministry.

Which makes him a perfect fit, with the rest of the PTP-led government-coalition, unfit-for-purpose.

This guy seems so far up himself I doubt he'll be able use his special PT calculator.

"Rungson said that with a simple calculation, he believed the loss should be "only Bt36 billion" a year. He explained that under the scheme the government offered Bt15,000 for every tonne of rice, compared to the market price of Bt12,000, which meant a loss of Bt3,000 a ton. And the government had about 12 million tonnes of rice in its stockpiles and the loss would be about Bt36 billion"

What a totally numpty. Someone pleas explain that having the rice in stockpiles does not mean it can be written off as "sold' . Until you actually sell it, the rice is a loss making asset. Just storing it doesn't make it profitable. If you never sell it, you will never get money. What a totally arse!

I've seen better financial advice given by 'Trigger; in Only Fools and Horses'

He is out of his tree, with the numbers he throws out , he is either total inept, with no idea of current rice prices, nationally or internationally, amount of rice in storage, monthly upkeep cost of same, cost to government to purchase rice under this program, losses in storage, transport, milling, fire, floods, theft, ag bank, police monitoring, government checks on inventory and proper handling, etc., or he is another flim flam man to further confuse the Thai people and the rest of the world.

"Rungson said that with a simple calculation, he believed the loss should be "only Bt36 billion" a year. He explained that under the scheme the government offered Bt15,000 for every tonne of rice, compared to the market price of Bt12,000, which meant a loss of Bt3,000 a ton. And the government had about 12 million tonnes of rice in its stockpiles and the loss would be about Bt36 billion"

What a totally numpty. Someone pleas explain that having the rice in stockpiles does not mean it can be written off as "sold' . Until you actually sell it, the rice is a loss making asset. Just storing it doesn't make it profitable. If you never sell it, you will never get money. What a totally arse!

I've seen better financial advice given by 'Trigger; in Only Fools and Horses'

I've seen better financial advice given by "Trigger" The Lone Rangers horse....

Nothing is lost until the rice is sold so unless he has buyers locked in for all the rice the government stockpile his numbers are meaningless. Plus the fact that his numbers don't include storage costs and spoilage... I get that it was a quick 'back of the envelope' type calculation intended to make a point but still...

Welcome to Lala land

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Everything look rosy from the bar

"Rungson said that with a simple calculation, he believed the loss should be "only Bt36 billion" a year. He explained that under the scheme the government offered Bt15,000 for every tonne of rice, compared to the market price of Bt12,000, which meant a loss of Bt3,000 a ton. And the government had about 12 million tonnes of rice in its stockpiles and the loss would be about Bt36 billion"

What a totally numpty. Someone pleas explain that having the rice in stockpiles does not mean it can be written off as "sold' . Until you actually sell it, the rice is a loss making asset. Just storing it doesn't make it profitable. If you never sell it, you will never get money. What a totally arse!

I've seen better financial advice given by 'Trigger; in Only Fools and Horses'

of course how could we have been so silly as to miss that. So if they paid 15,000 baht per ton and they have 12,000,000 ton of rice, then they only spent 180,000,000,000 baht on rice and not the reported 700,000,000,000 baht that they did. Because if they did then that means a loss of 520,000,000,000 baht just on purchase, then there is the ongoing costs, management fees, interest on loans and the depreciation of assets ect ect

A new guy with a headline. But he missed the photo op.

I wonder if Moody's, the other credit rating agencies and the World Bank will believe these figures. Perhaps its an acceptable "white lie" to build confidence in the new man at the FM - "look he's only been there 5 minutes and he's made a big difference already".

Give him a few weeks and it will be turned into a profit making scheme after all. See, these silly farangs know nothing about economics and accounting. Just trust the government, they know exactly what they are doing

What's sad is the arrogance and contempt with which they treat the Thai people in spouting this bilge which they are expected to believe. Simply lie - don't worry about any facts, or figures, or back up information. PTP transparency at its best !

Khun Rungson has just demonstrated his keen skills and knowledge in accountancy to a level that's expected. The real loss will never be revealed until there is a change in government. Then it will be shock, horror, best keep it quiet mode. God (whoevers) help Thailand if these crooks get their hands on the 2.2. trillion.

From the first moment the rice system started i knew it is business full of fraud and corruption.
Follow the moneyflow out first,because i expect it don't goes only to farmers.
Count your stock and the selling and you know how much is missing. I agree it should be 36 billion Baht but i believe it will be more than 100 billion baht, caused by fraud and corruption.
Seize the property of the people who did fraud, because the victims are the farmers and the population (government)
Change the system and gives the farmers 3.000 baht per ton compensation and let them sell their own rice.
It is only an idea, but the fraud and corruption will be less.

Go for it government. There is much money to earn back!

Just another one in a long line of 'Mouths on a stick' appointed by this criminal Government to cover their own arse's.

Wow, amazing! first day in the job and already reduced the expected losses to almost one third of the Commerce Minister's dubious figures.

His numbers are a big, Viagra-induced fallacy.

Look at the agriculture bank's account and ye shall see

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can he sort my over draft!!

If this latest Thaksin mouthpiece is correct and the rice losses are only 36 billion per year, and nobody is doubting that 700 billion has been plowed into the scam, then by using basic arithmetic 600+ billion has been stolen or misappropriated. Big boss should have been happier with the original loss figures!

"he did not believe the loss would be as high as Bt200 billion a year, as concluded a ministry audit committee"

Sound's like he's already made up his mind...

He has been told an acceptable number, now has to spin it to justify

"he did not believe the loss would be as high as Bt200 billion a year, as concluded a ministry audit committee"

Sound's like he's already made up his mind...

You got that right

Rungson Sriworasat, acting permanent secretary of the Finance Ministry, said that he did not believe the loss would be as high as Bt200 billion a year, as concluded a ministry audit committee, headed by deputy permanent secretary Supa Piyajitti.

He said that he would also replace Supa as chair of the audit team. He denied Supa was removed, saying that she would still work with him. But that as the permanent secretary, he should be in charge of the audit committee.

There is an iron clad guarantee that it will not exceed 200,000,000 baht.

Kinda of like putting Thaksin in charge of looking into the crimes in the 2010 attempted coup

The guy is talking utter nonsense. Paddy is bought at 15000, but that equates to (generously) 650 kg milled rice.

Even using his bs numbers that's a loss of 12000 per tonne of milled rice.

So with 12 million tonnes that 144 billion loss.

"he did not believe the loss would be as high as Bt200 billion a year, as concluded a ministry audit committee"

Sound's like he's already made up his mind...

... and as the new head of the audit committee, I have no doubt that he will prove himself correct...!

Furthermore, she who released the figures has not been sacked ... really!!