Thai govt warned bond floating to pay rice farmers may break the law

[webfact]

Government warned bond floating may break the law



BANGKOK: -- The government was warned that it might be held accountable for breaching the Constitution if it goes ahead with its plan to raise 130 billion baht fund through the issuance of bonds for the Bank of Agriculture and Agricultural Cooperatives to pay rice farmers.

Dr Warong Dejkitvikrom who was responsible for exposing the nonexistent government-to-government rice deals between Thailand and China said Wednesday that the government was still struggling to seek cooperation from banks and other financial institutes in order to raise the fund despite the Election Commission’s warning that the government would have to take the risk itself.

He warned government officials not to obey the politicians if they were told to do something which is against the law namely fund raising or securing a loan for overdue rice payments for farmers.

The former Democrat MP said he had warned the government a couple of times to stop acting as if it was the sole rice trader with monopolistic control of the rice trade. But the government now has to plead with rice traders to buy rice at whatever the prices and at whatever the amount that they wish in order to get the needy money, he added.

The only way out of this dilemma for the government is to try to sell as much rice and as fast as possible so there will be money to pay the dissenting farmers crying foul against delayed payments.

Source: http://englishnews.thaipbs.or.th/government-warned-bond-floating-may-break-law/

-- Thai PBS 2014-01-23

[EricBerg]

As there will be no February 2 election it would be straight stupid of the caretaker government to try to get another huge loan to uphold the rice scheme. The courts will catch up with them and this time politicians will pay for their fraud and crimes.

[noikrit]

Got to find money somewhere to appease ( buy) the Voters ..... ....... Now back to the Cricket ....

[MaxLee]

Where there is Thaksin, there is a way. Thaksin thinks, Pheu Thai acts ... taxpayers are screwed anyways...

[mic6ard]

IMO the only problem I see with this article is the fact that the Gov't bought the rice at a price higher than the market is right now. So no matter how much they sell, there's no way to fund all the payouts.

Any which way they try to spin this they're screwed

[Bluespunk]

IMO the only problem I see with this article is the fact that the Gov't bought the rice at a price higher than the market is right now. So no matter how much they sell, there's no way to fund all the payouts.

Any which way they try to spin this they're screwed

They carry out this plan it's the BAAC that's screwed.

[Local Drunk]

Who's gonna buy dem dere rice bonds boys?

[AleG]

IMO the only problem I see with this article is the fact that the Gov't bought the rice at a price higher than the market is right now. So no matter how much they sell, there's no way to fund all the payouts.

Any which way they try to spin this they're screwed

The Rice Scheme is a clear Pyramid Scheme, the farmers input x amount of wealth (in rice) expecting to get 2x in return while the money generated by the scheme is actually <x; the government used a state bank (the BAAC) to keep the scheme afloat for a while, but now the bank has been sucked dry and reality starts to assert itself.

In other countries the scheme itself, let alone any corruption, would be the subject of a criminal investigation.

[slapout]

"The government is screwed", maybe a better term would be "the Thai people are screwed".

Individuals in the government may or may not be brought to justice, it may be dependent on how far/widespread the monies taken/skimed out of the rice program budgets were distributed. The mssive amount unaccounted for would make several thouand individuals quite comfortable for a lifetime. Of course this would depend on the defination of comfortable and life style.and what is the length of a lifetime.

[Brevity]

... is the fact that the Gov't bought the rice at a price higher than the market is right now. So no matter how much they sell, there's no way to fund all the payouts.

Any which way they try to spin this they're screwed

From what I've heard, the government paid a lot over the market price, and to make it worse global rice prices were dropping at the time. I also heard that Y.S. tried to bully neighboring countries into joining her insane plan. Fortunately for those other countries, they could see that her idea was a very crazy and dangerous one, so they wisely ignored her.

I'm starting to think that Yingluck S. should be arrested and put away for a long long time, after all of her and her family's assets are seized,

Actually, don't seize her assets. Just use the money to sell her the rice at a 50% mark up from the price she paid the farmers. Then everybody's happy. The farmers get their money, the loan /bond requirement is no longer needed, and Yingluk and her family can eat rancid old rice in great quantities the rest of their lives.

[heina]

IMO the only problem I see with this article is the fact that the Gov't bought the rice at a price higher than the market is right now. So no matter how much they sell, there's no way to fund all the payouts.

Any which way they try to spin this they're screwed

The Rice Scheme is a clear Pyramid Scheme, the farmers input x amount of wealth (in rice) expecting to get 2x in return while the money generated by the scheme is actually

In other countries the scheme itself, let alone any corruption, would be the subject of a criminal investigation.

Tell as where are you from and we will tell you how much your government spend for a agriculture subsidy and how much they loan for that.

[AleG]

IMO the only problem I see with this article is the fact that the Gov't bought the rice at a price higher than the market is right now. So no matter how much they sell, there's no way to fund all the payouts.

Any which way they try to spin this they're screwed

The Rice Scheme is a clear Pyramid Scheme, the farmers input x amount of wealth (in rice) expecting to get 2x in return while the money generated by the scheme is actually

In other countries the scheme itself, let alone any corruption, would be the subject of a criminal investigation.

Tell as where are you from and we will tell you how much your government spend for a agriculture subsidy and how much they loan for that.

Heina, Uruguay, good luck.

[wprime]

IMO the only problem I see with this article is the fact that the Gov't bought the rice at a price higher than the market is right now. So no matter how much they sell, there's no way to fund all the payouts.

Any which way they try to spin this they're screwed

Devaluing the THB would solve that problem. They would be able to sell the rice at market price, pay the farmers and still turn a profit. The BoT would never agree to that though.

[GeorgeO]

As there will be no February 2 election it would be straight stupid of the caretaker government to try to get another huge loan to uphold the rice scheme. The courts will catch up with them and this time politicians will pay for their fraud and crimes.

As I've stated before, a caretaker government has duties to see through existing policies and keep the ministries ticking over until a new government takes over.

It has no authority whatsoever to propose new policies, and certainly not to go floating new bonds to raise money for its own misguided purposes...!!

Any attempt at using this as a way out of their current problems would, at the very least, amount to misappropriation of funds, and at worst, embezzlement (theft).

[icommunity]

The government's show it is willing to risk for the sack of the well being of rice farmers. While the oppositions focuses on their continuous suppression of rice farmers.

[JRSoul]

The government's show it is willing to risk for the sack of the well being of rice farmers. While the oppositions focuses on their continuous suppression of rice farmers.

The government is not risking the sack, they are risking jail. However, if they don't get the money to buy some votes, they won't be re-elected, and face an even higher risk of jail time as the police and AG now in their pockets are forced to carry out their lawful duties.

Worse still; they may lose their assets when they are forced to pay compensation for the rice scam. Expect suicides rather than years of incarceration as a pauper.

[Tatsujin]

As there will be no February 2 election it would be straight stupid of the caretaker government to try to get another huge loan to uphold the rice scheme. The courts will catch up with them and this time politicians will pay for their fraud and crimes.

As I've stated before, a caretaker government has duties to see through existing policies and keep the ministries ticking over until a new government takes over.

It has no authority whatsoever to propose new policies, and certainly not to go floating new bonds to raise money for its own misguided purposes...!!

Any attempt at using this as a way out of their current problems would, at the very least, amount to misappropriation of funds, and at worst, embezzlement (theft).

They've already misappropriated and embezzled a huge amount, so what's a bit more to them . . . they still assume they'll get re-elected and can then rewrite the laws once again to absolve themselves of any blame/guilt cos they got "the majority" . . . same ol', same ol' . . .

[Scamper]

Stories like this are so numerous with this administration that one is tempted to ask - was the tangled web of Watergate really much simpler to follow ?

[spirit47]

IMO the only problem I see with this article is the fact that the Gov't bought the rice at a price higher than the market is right now. So no matter how much they sell, there's no way to fund all the payouts.

Any which way they try to spin this they're screwed

The Rice Scheme is a clear Pyramid Scheme, the farmers input x amount of wealth (in rice) expecting to get 2x in return while the money generated by the scheme is actually

In other countries the scheme itself, let alone any corruption, would be the subject of a criminal investigation.

Tell as where are you from and we will tell you how much your government spend for a agriculture subsidy and how much they loan for that.

Heina, Uruguay, good luck.

Really, your president and your agricultur style are admirable...

[ggold]

IMO the only problem I see with this article is the fact that the Gov't bought the rice at a price higher than the market is right now. So no matter how much they sell, there's no way to fund all the payouts.

Any which way they try to spin this they're screwed

the Gov't bought the rice at a price higher than the market is right now

The price moved against the government the minute they offered the farmers more than the market value for the rice. Or didn't you know that?

It wasn't a case of we bought this rice and then the market moved lower. The government screwd the rice trade here in Thailand for years to come just so they could be assured of the rice vote!

[icommunity]

The government's show it is willing to risk for the sack of the well being of rice farmers. While the oppositions focuses on their continuous suppression of rice farmers.

The government is not risking the sack, they are risking jail. However, if they don't get the money to buy some votes, they won't be re-elected, and face an even higher risk of jail time as the police and AG now in their pockets are forced to carry out their lawful duties.

Worse still; they may lose their assets when they are forced to pay compensation for the rice scam. Expect suicides rather than years of incarceration as a pauper.

Read carefully, the government is willing to risk for the sack of the well being of rice farmers. And, I am sure at all cost on an ongoing rice pleading scheme.

[thesetat2013]

As there will be no February 2 election it would be straight stupid of the caretaker government to try to get another huge loan to uphold the rice scheme. The courts will catch up with them and this time politicians will pay for their fraud and crimes.

When have you known any politician in power in thailand to recieve justice for their crimes against the people? It took the Army just to oust Thaksin and he is still wanted for crimes here yet even this is true nobody bothered to ask interpol to arrest him and extradite him to prison here. In fact all gov politicians in the PTP still consort with him and even YL has been quoted that she calls him on skype for advice. I though it was criminal to aid and abet a known criminal?

Sent from my GT-S5310 using Thaivisa Connect Thailand mobile app

[AleG]

The government's show it is willing to risk for the sack of the well being of rice farmers. While the oppositions focuses on their continuous suppression of rice farmers.

Are you from Calgary, by any chance?

[icommunity]

The government's show it is willing to risk for the sack of the well being of rice farmers. While the oppositions focuses on their continuous suppression of rice farmers.

Are you from Calgary, by any chance?

Nope.

[pipkins]

The government's show it is willing to risk for the sack of the well being of rice farmers. While the oppositions focuses on their continuous suppression of rice farmers.

Quite obvious that with the Coup stuttering and the Judicial Coup mired due to the exposure of the EC and CC members and their affiliations.

So, all focus is on the rice and trying to get the farmers to boost Sutheps flagging numbers.

Bond issued and the bond holder not the tax payer stands the risk? Illegal? Crazy and smacks of desperation from the anti dems and media here continually hang on the word of the very people (judges) who want the coup to work.

All the evidence is of the Courts and Suthep and EC holding up the rice payments. The farmers will see that, and if not, up to them. Just more Elite posturing from the Suthep side.

More they speak out the more they appear to be colluding. Let em speak and let the media disgrace itself even more by giving these nuts airtime and news inches. Discredits the media more than the Government.

[robblok]

The government's show it is willing to risk for the sack of the well being of rice farmers. While the oppositions focuses on their continuous suppression of rice farmers.

Quite obvious that with the Coup stuttering and the Judicial Coup mired due to the exposure of the EC and CC members and their affiliations.

So, all focus is on the rice and trying to get the farmers to boost Sutheps flagging numbers.

Bond issued and the bond holder not the tax payer stands the risk? Illegal? Crazy and smacks of desperation from the anti dems and media here continually hang on the word of the very people (judges) who want the coup to work.

All the evidence is of the Courts and Suthep and EC holding up the rice payments. The farmers will see that, and if not, up to them. Just more Elite posturing from the Suthep side.

More they speak out the more they appear to be colluding. Let em speak and let the media disgrace itself even more by giving these nuts airtime and news inches. Discredits the media more than the Government.

So funny that there are still people trying to blame others while its 100% the fault of the government. I wonder how much those red glasses cost.

[SABloke]

The government's show it is willing to risk for the sack of the well being of rice farmers. While the oppositions focuses on their continuous suppression of rice farmers.

Quite obvious that with the Coup stuttering and the Judicial Coup mired due to the exposure of the EC and CC members and their affiliations.

So, all focus is on the rice and trying to get the farmers to boost Sutheps flagging numbers.

Bond issued and the bond holder not the tax payer stands the risk? Illegal? Crazy and smacks of desperation from the anti dems and media here continually hang on the word of the very people (judges) who want the coup to work.

All the evidence is of the Courts and Suthep and EC holding up the rice payments. The farmers will see that, and if not, up to them. Just more Elite posturing from the Suthep side.

More they speak out the more they appear to be colluding. Let em speak and let the media disgrace itself even more by giving these nuts airtime and news inches. Discredits the media more than the Government.

So funny that there are still people trying to blame others while its 100% the fault of the government. I wonder how much those red glasses cost.

The glasses come free - it's the bar fines, sick buffaloes and new homes that empty you pockets

[billsmart]

IMO the only problem I see with this article is the fact that the Gov't bought the rice at a price higher than the market is right now. So no matter how much they sell, there's no way to fund all the payouts.

Any which way they try to spin this they're screwed

The Rice Scheme is a clear Pyramid Scheme, the farmers input x amount of wealth (in rice) expecting to get 2x in return while the money generated by the scheme is actually <x; the government used a state bank (the BAAC) to keep the scheme afloat for a while, but now the bank has been sucked dry and reality starts to assert itself.

In other countries the scheme itself, let alone any corruption, would be the subject of a criminal investigation.

It's not as bad as that. If x = the free market price of the rice the government paid less than 10% more than that. If the government tried to sell all the rice quickly that would drive the price down even further. They should probably try to sell the rice internationally since the baht is loosing value. That might work...

[AleG]

IMO the only problem I see with this article is the fact that the Gov't bought the rice at a price higher than the market is right now. So no matter how much they sell, there's no way to fund all the payouts.

Any which way they try to spin this they're screwed

The Rice Scheme is a clear Pyramid Scheme, the farmers input x amount of wealth (in rice) expecting to get 2x in return while the money generated by the scheme is actually <x; the government used a state bank (the BAAC) to keep the scheme afloat for a while, but now the bank has been sucked dry and reality starts to assert itself.

In other countries the scheme itself, let alone any corruption, would be the subject of a criminal investigation.

It's not as bad as that. If x = the free market price of the rice the government paid less than 10% more than that. If the government tried to sell all the rice quickly that would drive the price down even further. They should probably try to sell the rice internationally since the baht is loosing value. That might work...

The government paid at least 40% more than the market value; so that's the baseline loss of the scheme. To that add the storage costs for an ever larger amount of unsalable rice.

Furthermore, if and when the non-existant sales, missing stocks and simple siphoning of money come to light a larger loss will be seen.

I believe a total loss of 50% is a very conservative estimate.

[Thai at Heart]

IMO the only problem I see with this article is the fact that the Gov't bought the rice at a price higher than the market is right now. So no matter how much they sell, there's no way to fund all the payouts.

Any which way they try to spin this they're screwed

Devaluing the THB would solve that problem. They would be able to sell the rice at market price, pay the farmers and still turn a profit. The BoT would never agree to that though.

Would have to drop an awfully long way....