Auditor-general tells caretaker PM Yingluck to scrap rice pledging scheme

[Suriya4]

The Dems systems is better.

No false registration of farmers, no led to exaggerated number of registered farmers.

Just hand over payment without seeing the physical rice.

No the Democrat system was not better. That is the hole point. The Democrat's poured in money to no effect because the farmers that were poor remained poor. The Democrats also had difficulty with funding their half heated schemes often not meeting obligations to the farmers within a reasonable time. The Democrat scheme also encouraged farmers to expect continuing handouts from a nanny state whilst their was no incentive for the farmers to address Thailand's declining productivity. It is also worth noting the the endemic corruption in Thailand rice industry ran amok with little hope of identifying points of corruption because the corruption was distributed along a path of milling, warehousing and shipping all with their own cut of the proceeds of the processing and sale of the rices crops. In fact the system favored corrupt income opportunities for the elite families and institutions. Such matters are the fruit for the wealthy that has probably prevailed for longer than Thailand has been a democracy. Hence the Suthep movement that may have promised his elite friends that he will reset the profitability of their enterprises.their.

Personally I am distressed that the Rice Pledging scheme is in difficulties because if it succeeds it will rip the heart out of corruption in Thailand. As similar systems were introduced to corruption unfriendly production and marketing systems of all Thailand's agri projects and perhaps wipe out poverty and corruption in the longer term. I imagine that the architect of the rice pledging scheme has similar hopes.

OK, I agree with you that the Dem system is no better to make the poor reacher.

However, the Dem system make money for the Thai government, does not have a burden on Bangkokian tax-payer, fool proof, and not subject to any corruption.

[arthurwait]

These poor farmers have NO right to stell the people's tax-payer money.

The farmers should go after Yingluck for compensation from her personal wealth, not from the tax-payers of Bangkok.

Bangkok people pay fair prices from rice they consume. Why should Bangkok people give free money to farmers?

[kimamey]

scheme was plagued with irregularities, corruptions at all levels of implementation and significantly does not benefit the majority

Sounds about right for everything done by the PTP.

When will some posters ever grow up and realise that merely posting childish attacks is not funny to anyone other than themselves?

My guess is never.

[northernjohn]

Well kiss my butt, just exactly as all the expats in Thailand have been suggesting since this hideous scheme was introduced , the only people that wont see this as a way out of a bad deal is the PTP , they will just dig their way into a mess that will get bigger and bigger, arrogant , corrupt, intimidating and down right dangerous , the PTP right to rule like it or not will continue, it's business as usual for Thailand.

Read all the posts. You will notice that there are some expats still claiming that she is innocent.

I don't see this as a way out of a bad deal just a way out of a bad policy.

They are still stuck with a bad deal.

I wonder how many of them would be backing her if she looked like her brother or older sister?

[Old Man River]

I doubt that is a crime. Over the years we have seen individuals try to corner markets. It is the first time I have been aware of a government try to drive up prices so the government could either sell at a profit or break even. Maybe it has happened before, but from what is in print, with other countries picking up the slack and global traders making quick online trades, it had little chance of success. Hence, it is possible malfeasance charges could be made due to the losses allegedly being incurred (the World Bank has made estimates).

Separately, there are the charges where some tried to gain individually. These appear to be the 15.

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Malfeasance may be a possibility. However, for argument sack, I don't think it is easily apply unless the evidence is that of abused of power and unauthorized online trading.

However, rice pledging scheme is not a money making scheme. It is an 'investment' like infrastructure investment. Eg factory investing in machinery, farmers investing in modern method of farming etc. Investing in the well being of the farmers help food security (that is when they stay farming), allowing the related industries to grow and develop and that growth also help shipping, warehousing, banking and insurance services. In short, I am looking at the economy as a whole. The other alternative is for us to become a rice importing nation which some countries are beginning to regret.

On malfeasance, from what I have read, she continued the program despite others saying that it was leading to large losses for the country. The NACC is looking at it.

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[Keesters]

scheme was plagued with irregularities, corruptions at all levels of implementation and significantly does not benefit the majority

Sounds about right for everything done by the PTP.

When will some posters ever grow up and realise that merely posting childish attacks is not funny to anyone other than themselves?

When it comes to childish attacks I reckon yours deserves an award.....And some found it funny while none found yours at all interesting.

[Melyn]

Looking at the article on water management it appears that the stored water in the dams is extremely low. Not enough for normal supply.

If this affects the farmers - as it appears certain to do - then there could well be another battle on the government's hands

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[timewilltell]

The problem is the entire scheme itself is a stitch up; it was set up based on the concept of being fairly self funding with a 'float' needed from memory 500b baht. However, the reality vs. the estimates of how much it cost massively underestimated the true cost, in an ENRON/WorldCom style way of recognising sales that didn't exist.

Rest assured the G2G sales and their confidentiality are there for one thing only - to cover the truth of how much every sale is wasting tax payer month. If anyone was stupid enough to buy at 17,000b per ton the govt would be sure to be crowing how they achieved the sale. The refusal of the government to investigate and check or audit and their 'shoot the messenger' approach to handling any criticism coupled with outright lying about sales which don't exist, are why the entire scheme is bankrupt. Which even until today is denied by the government, who still claim to the farmers that payouts are not being made due to the protesters.

There is no easy legal solution until we have a proper government to pass a new act to create a source of funding which can support the scheme, and insiders have clearly stated that no one has any idea exactly how much this scheme will lose. No civil servant is willing to support the scheme when its likely to collapse; even the Chinese are making it clear they want no part of this scheme (perhaps because the reality of what they paid and how much was delivered will show up corruption on both sides).

The easy solution is that the government should only pay for domestic rice consumption, and for all exported rice the Shinawatras should offer to purchase the entire rice stockpile at 100% of the pledged price of approx. 12,000b (which was never achieving 15,000b, as there has been corruption at every step of this idiotic policy) since THEY are the ones who think it's a good idea - it has nothing to do with food security, they said it would increase the average price per ton to be self sustaining, so let them take the risk of this occurring (or not) by running their own rice cartel with THEIR money, not ours - we only need rice for domestic purposes, let the SHINAWATRAS enjoy the upside of buying at 50% above market rates if THEY think its a good plan for export.

The reality is the refusal to disclose prices and to admit any issues in the scheme is tantamount to condoning the corruption in the scheme - we know why because the government senior MPs and backers are the most likely to have their hands in the till.

You are entitled to your opinion. My focus is on solution on the challenges of the rice pledging scheme - not the problems. I look beyond the rice pledging scheme and see the integration of every sectors of the economy. It is also a step towards combating corruption when people's life improved.

Using Shinawatra family as a solution risk them being accused of conflict of interest and abused of power with the kind of politics we are currently in. It is a scheme that the people wanted and we should work to overcome problems of the scheme and punish the wrong doers and saboteurs.

This rice scheme is not a handout, subsidy. It is an investment on the total economy and food security (National security) of Thailand.

Obstructionist politics, distortion and smear campaigns of politicians are creating added challenges for the implementing government.

If you are afraid of solving this rice scheme problems, don't expect people to have faith in you and trust you with bigger issue of the country.

I don't expect Thaksin haters and fearers to be constructive.

Under the democratic system of Government, the people can always vote the government out and replace it with other alternative.

Let's leave aside the fact that the rice scheme is a scheme indeed and instituted either by unimaginable stupidity or deceit on the farmers for the personal gain of politicians and their warehousemen and miller friends at the expense of the country.

Let's leave aside that all and sundry were telling the government that it would not work yet the government blundered on. Let's leave aside the multitudinous reports of corruption throughout the entire scheme yet nothing was done about it safe to bribe the police with a bonus payment to carry out investigation or was it protection or inspections on something the police knew nothing about nor did anything about. Let's put aside the fact that when the whistleblower from the finance ministry (I think) spilled the beans on what the scheme was really costing, she was pilloried and discredited though most people could see she was right.

Put aside the fact that the governments accounting method of valuing the rice stocks supposedly at cost when it was clearly a flawed method as explained by many experts. Close your eyes to the fact that deterioration of the rice stocks is not being investigated or accounted for In the scheme's accounting. Ignore the fact that ongoing warehousing costs are not accounted for either.

Ignore the fact that the government has lied about the Chinese sales to companies that don't even exist and those fictitious companies no longer want to buy once the fact was exposed that it was just a fiction.

Now let's just look at the fact that this scheme that has cost upwards of one TRILLION baht already and reconcile that with your statement that somehow this scheme is an investment in the total economy and Food Security (National Security) of Thailand. Balance that with the assessment that 83% of this giant treasonous corruption scheme has gone to the rich and very rich and explain quite how all these facts support your statement.

The rice scheme is in fact the direct opposite of your statement and it should be scrapped immediately. If you think its minor 1 trillion baht flaw can be easily resolved by anyone then I will leave you to your dream world.

[LuckyLew]

"The Office of the Auditor-General has advised caretaker Prime Minister Yingluck Shinawatra to scrap the rice-pledging scheme reasoning the scheme was plagued with irregularities, corruptions at all levels of implementation and significantly does not benefit the majority poor farmers."

This was the PTP plan all along ... they never cared for the poor farmers ... so according to PTP the scam is a great success

[timewilltell]

Thaksin has done many good things, the 30 baht health scheme comes immediately to mind but he has also profited hugely from his position in politics. Suthep and friends have also profited from their positions in politics. This happens everywhere in the world but it is a matter of degree. Corruption has got so far out of control ordinary people are rising up against it and voting in another version of a corrupt treasonous government is not what the people want. Some people are blind and believe the party propaganda machines but Thailand needs politicians who care deeply for their country more so than their own selfish goals. Thailand needs a control on corruption to reign it in to a manageable level and needs to have a system in place that punishes people who are corrupt.

That is the matter of National Security because right now it is tearing the country apart and I know no one who lives here, foreigner or Thai, who really want that. Corruption, a working justice system, transparency in politics and a working police force are the focus for Thailand along with abolition of all the laws that protect the rich in favour over the poor.

[Crushdepth]

Target the wrong doers and the saboteurs rather than the rice pledging scheme. Who are those unscrupulous people, the auditor general office should reveal them to the government and if the government does not take action against them than it is guilty of dereliction of duties.

And if the wrongdoers turn out to be senior members of the government? Perhaps the very people that designed the scheme and its flaws and lack of transparency? Will they take action against themselves? Why haven't heads rolled in Phuea Thai for appalling mismanagement, if nothing else?

This scheme has all the hallmarks of a stitch up.

That was precisely my opinion. Read my comment and ask how much you understand the rice pledging scheme -its purpose and what role you can play to make it successful not just for the farmers but also for food security related issues and related industries.

I understand the stated purpose the rice scheme but I never believed that was its real purpose.

Market-distorting agricultural subsidies of one type or another have been tried all over the world and are widely derided by economists (as was this one) for reasons I will not labour here. The government aren't idiots they knew that. Officials from the ministry aren't idiots and certainly would have advised them of the likely consequences. Many external agencies also publicly warned the government of the economic and corruption risks, it was all over the news. They knew what they were doing.

Yet they went ahead. It was not not hard to guess who the real beneficiaries were going to be.

How to make the scheme successful for farmers and food security? Shut it down before it does any more harm. Pay the farmers what they are owed, fast, plus decent compensation for going without an income for half a year (so far). Find a way to dispose of the stockpiled rice that will not depress the market price of future crops as well (good luck with that) or result in anti-dumping tariffs against Thai exports. Government assistance should focus on measures that will help farmers improve their efficiency and competitiveness, not lower it.