Thailand's anti-corruption movements having little effect, survey finds

[webfact]

Anti-corruption movements having little effect, survey finds
Petchanet Pratruangkrai
The Nation

Economic loss could amount to Bt40 bn if siege lasts until end of month

BANGKOK: -- Thailand's corruption image reached a critical point last year and is expected to continue worsening this year, despite the growth of the anti-graft campaign during the past four years, according to the University of the Thai Chamber of Commerce.

Meanwhile the economy could face a loss of Bt20 billion to Bt40 billion if the chaotic "Bangkok shutdown" movement, whose supporters say they want to uproot graft in government, lasts until the end of this month.

The Thai Industries' Sentiment Index last month plunged to 88.3 from 90.3 in November, the lowest in the 25 months since December 2011. Businesses believe that the political conflict will not be resolved in a short time and will strangle consumer spending. An index score below 100 indicates weak confidence.

Rising production and energy costs also added pressure on the index in December, Payungsak Chartsutipol, chairman of the Federation of Thai Industries (FTI), said yesterday.

The FTI conducted the survey on 1,025 operators in 42 industries. For confidence in the next three months, the sub-index edged down to 100.9 from 101.4 in November.

The university's Economic and Business Forecasting Centre's survey found that the corruption perception index dropped dramatically, from 41 in June to 39 in December.

"People have acknowledged that the corruption situation in the country is getting worse," said Thanavath Phonvichai, director of the centre. "They still see bribery in business deals between government agencies and companies, while they are worried about the many projects implemented by the government that could lead to corruption such as rice pledging, local development, Bt2 trillion worth of infrastructure development and the Bt350-billion water management programme.

"Corruption can be found particularly among politicians and civil servants," Thanavath claimed.

The university also reported that according to a global corruption perception survey among 177 countries, Thailand's ranking plunged from 88 in 2012 to 102 last year. This indicates that the world is concerned about corruption in Thailand, while other countries in Asia boast better rankings.

Corruption in the Kingdom will not improve this year. But the political demonstrations, which have touched on the problem, should help build people's awareness of and help eliminate graft from the country, he said.

"To get rid of fraud, it could take a long time, 10 or even 30 years. But it's time that Thailand looks seriously at how to eliminate the problem, as this has damaged the country's development for too long," Thanavath said.

Need for bribery

Based on the survey of 2,400 respondents, up to 75 per cent of enterprises that have to do business with government agencies need to bribe politicians or government officials to win contracts. Bribes eat up about 25-35 per cent of the total budget of each project. This could add up to Bt300 billion a year.

Based on the government's Bt2.4-trillion budget for 2013 and the cost of corruption at 35 per cent, the damage would be 2.63 per cent of gross domestic product. If the cost of corruption were 30 per cent, the damage would be 2.25 per cent.

If the cost of corruption were 25 per cent, then it would be 1.88 per cent. To solve the problem, 31 per cent of respondents said politicians should be targeted for clean-up, 29 per cent said civil servants and 23 per cent said businesspeople. People said Thailand needed to raise awareness of morality, ethics and the need to make each state project transparent, with the government revealing relevant information on such programmes clearly.

Thailand needs to amend some laws and tighten rules and regulations, while strictly enforcing existing laws to punish those who are corrupt, they said.

The university projects GDP expanding only 1-2 per cent this quarter because of the political conflict.

Thanavath said the losses to the consumer and tourism industries could run about Bt5 billion to Bt10 billion a week. If the situation is prolonged, the economy might grow by only 3-4 per cent this year, held down mainly by the slowdown in consumption and tourism.

The FTI's Payungsak said the Bangkok shutdown had dampened economic activities but not to a serious level. However, customers of manufacturers have delayed their purchase orders to see where the political situation will head.

The private sector wants to see the political situation return to normal as soon as possible, he said.


-- The Nation 2014-01-17

[NongKhaiKid]

I wonder how successful the NCCC would be if it was able to operate within a system that doesn't set up so many roadblocks to protect those and such as those ?

[arthurboy]

So corruption is endemic and par for the course?

Perhaps Khun Suthep might also want to address this issue during this evening's nightly rant against all things Thaksin.

Thaksin and his cronies are corrupt, yes, but so are the rest of them.

It's called 'Thainess'.

sent from my hippo phone

[arthurboy]

So corruption is endemic and par for the course?

Perhaps Khun Suthep might also want to address this issue during this evening's nightly rant against all things Thaksin.

Thaksin and his cronies are corrupt, yes, but so are the rest of them.

It's called 'Thainess'.

sent from my hippo phone

[yooper2001]

Appointing another committee to investigate corruption is like giving a drug attic permission to guard a poppy field.

[noitom]

Thai corruption, nepotism, favoritism, and all sorts of other isms existed in Thai society, government and business long before Thaksin was standing up to relieve himself. Suthep and his followers are merely pandering to status quo meaning the establishment and pecking order is the course. Stay the course elite Thailand.

[crobe]

The corruption is endemic, seen to be part of the nor,al Thai way of doing business but does not have to be so.

I have been involved last year in setting up a contract between an APO (autonomous public organisation) and a company in Europe to develop high level software.

I can say that during this contract this process there have been no payments made under the table, the price paid is what goes to the company with no extra "pseudo-contractors" involved, and even I did not receive anything for setting this up.

Possibly the contract process took longer than by using shortcuts

So it shows that if the willingness is there, and the management on the government institution is clean, then this can be done

It is not true if you go one level up though - as soon as you hit the ministries then the 30% rule kicks in, so my advice to foreign companies dealing with Thailand is to ensure that they know the management of the government organisation and can guarantee a clean contract, but avoid the ministries and politicians.

Sent from my iPad using ThaiVisa app

[falangadang]

Anti-corruption movements having little effect, survey finds

I hope they didn't pay too much for this survey report,.. I could have told them that for FREE!

[Halion]

40 Billion is a drop in the ocean when compared with the rice scandal..

[abhaya]

_{They did another poll sometime back and found that 60% of Thais felt corruption was OK as long as they as individuals benefited from it. It is rot at the core of Thai society that I don't see a cure for it.}

[1plumber]

all of these greed driven things in Thai society (everything) are so generational that they can never be changed. It's just as it always has been. If they will not change it, why should I care? All this self destruction that occurs only makes my money stronger. All of these things that we find so wrong are just normal to them. Sit back,grab a cold one and enjoy the show.

Edited January 17, 2014 by 1plumber

[bigbamboo]

It's hardly surprising little progress is being made when those charged with eradicating corruption are responsible for most of it.

[DocN]

Ask Dr. Seri: "Our corruption- good! Their corruption- bad!"

Clowns, all of them!

[GAZZPA]

Wow, big surprise. A bit like the PM's idea that boat propellors will "push" the water in a different direction during the rainy season to prevent floods, totally useless.

it's going to take a very brave individual with real control and authority to stamp down on this, it will be have to be a zero tolerant policy to create real change. I suspect it will be like shooting fish in a barrel.

[MILT]

No Government on "this small spit of dust circling through the orbital cosmos" can nor would function if not for some form of corruption.

Whether it's clinging to the fringe of legal with no regards to ethics or the blatant graft distracted by less blatant graft protected by blatant nepotism it all still takes place, has and always will.

Creating political laws and rules that by it's very nature allows doorway's to the path of public servants not serving. Thailand included to a point.

Right now the ruling world government's together in concert make behind closed door meetings with the major global corporations

that directly affect the world populations and environments. They are protected in such a way that the varied policy's

which mainly are food and media, (what we eat and what we watch and listen to) these policies do not have to be made public nor does humanity have a say in the matter at all.

Most but not all people are corrupt and greedy by nature at some level. It is human nature really.

Change only happens by self awareness or fear and disaster. Thailand will not have much options in the very near future.

How Thailand does business will have to change as will the other Asean members need to modify how business is done.

What Thailand is going through now will be nothing to what may be coming soon.

Without future foreign investment and the closed door deals, Thailand and other Asian countries will be sadly enough

finished. Anti corruption efforts should be conducted through independent agencies that have no other agenda than to serve oversight.

The US as an example have countless oversight committees because corruption and the potential for corruption takes place.

Without those independent agencies the US government would be a lot more dysfunctional than it already is.

Who can name a country that does not have corruption at some level? Maybe Bhutan? maybe!

Bottom lines is the Thai people should really study the potential impact both positive and negative that next year will undoubtably bring.

The Shin a whats? would not survive nor their minions in a world governed and economic based Asean community.

[a99az]

Now why am I so surprised?

[khunken]

It seems that a few posters think that nothing should be done because it has always existed in Thailand. No doubt it has always existed - and world-wide too - but sticking one's head in the sand and even supporting it is a woeful attitude.

It has got much worse in the 21st century when it should be getting better. Apart from politicians, the worst culprits are the police. They are supposed to uphold the law when, far too often, they do the opposite. They and their totally corrupt offshoots, the AG & the DSI. need a body with teeth to prune them from top to bottom. It can be done although corruption is unlikely to be completely eradicated.

The NACC needs more staff, more clout and a remit to go after the biggest cases within the government and ministries. It currently is snowed under with cases so some prioritising is needed.

There is no point in the typical 'we'll do it in 90 days' BS. It's a medium to long term process that some neighbours of Thailand have already embarked upon. Thailand risks being left behind if it doesn't make an effort.

[trihent]

There is only 1 solution to the problem (not 2 or 3) Within the country Yes it could take decades to fix the problem. BUT the EU and the USA have anti-bribe laws and should be using them. Australia is a matter as are China and India are something that should be looked at. BUT the only way this can be dealt with is the countries which are hosting the international banks and companies need be held to account. As corruption follows certain rules (as does everything) it is bound to fail same as an MLM, it just takes longer. With Burma coming into the ASEAN chair Thailand if she is careful Might be able to a massive change, which tho I watch as an Farang I cannot infulence and as most readers neither can you

[retsdon]

In the moo ban where we stay, two massive houses which have been a year in construction are now complete. My wife tells me that the one belongs to a senior PTP officiial ( he might even be an MP, I'm not sure) and its twin next door belongs to the officials brother. The cost was apparently 28milliom apiece. Suspicious wealth? Of course.

But here we come to the root of the problem. In any western country, before our friend had even installlec his new 60 inch smart TV, the Fraud Squad would have been around to follow the money trail and unless he was very smart indeed, both official and brother would be getting rehoused for a good few years in less salubrious accomodation. Outraged neighbours, furious at seeing their tax money stolen and flaunted in their faces would have dobbed him in.

In Thailand though, NOBODY CARES. The neighbours might mutter about it, but half are secretly envious, and the other half are resigned and shrug their shoulders. What can be done? The largest house in the moo ban belongs to a retired police colonel - no help forthcoming there. And as everyone knows, if you make trouble for your betters in ThIland bad things happen, and nobody wants to be found dead in a ditch. The ordinary person is powerless, even if they cared which is debatable.

The people in charge aren't going to fix it either. Our official makes his money because people higher than him allow him to do it. This buys his loyalty and gives them a blackmail hold on him. He does the same for people under him and so on and so forth down the line. Our official might be PTP, but this isn't a political issue at all because you could find his double in any political party or governmrnt department. Corruption is social and in Thailand is hard wired into the culture to an extent that nothing short of a massive social revolution that completely reorders society is going to change how things work.