Thai editorial: Time to derail this gravy train

[webfact]

EDITORIAL
Time to derail this gravy train
The Nation

State enterprises have been used to reward political allies with lavish pay and perks for too long

BANGKOK: -- State enterprises have come under fire over reports of the generous pay and benefits enjoyed by members of their executive boards - all funded, of course, by the taxpayer. Junta leader General Prayuth Chan-ocha has ordered the State Enterprise Policy Office to examine operations on all 56 state-enterprise boards, with the focus on benefits such as bonuses and meeting fees.

The ruling National Council for Peace and Order (NCPO) turned its focus on the state-run firms following revelations that benefits for their top executives exceed Bt10 billion a year. The NCPO is now seeking to scale back privileges for board members and also to cut staff expenses and bonuses at all state-owned enterprises. Individual board members can receive benefits to the tune of millions of baht every year.

Thai Airways International (THAI) and Airports of Thailand (AOT) are among the junta's main targets. THAI board members enjoy lavish perks, including 20 free trips every year each and generous monthly and meeting allowances. Retired directors get a lifetime discount on airfare. AOT has faced harsh criticism for paying annual bonuses equivalent to 11 months' salary and handing special privileges to its board members. The NCPO move is expected to staunch the bleeding at the national carrier, which logged a net loss of Bt2.6 billion in the last quarter.

Following the junta's tough action, several board members - most of them with political links - have resigned from state enterprises PTT, Thai Oil, Krungthai Bank and Airports of Thailand. Among them are Krungthai Bank chairman Voravidh Champeeratana, Airports of Thailand chairman Sita Divari, PTT chairman Panpree Bahiddha-Nukara, Government Lottery Office director-general Police Maj-General Attagrit Tharechat and Government Housing Bank director Thanin Angsuwarangsi. More are expected to follow suit, with the ruling junta appointing their replacements.

According to a Finance Ministry source, state enterprises have long been a source of benefits for people with political connections. Politicians in power often reward friendship and loyalty with directors' posts. Many of the appointees are bureaucrats or executives of companies with political connections.

Most state enterprises are majority-owned by the state through the Finance Ministry, so lower running costs at such firms would mean increased revenue for the country.

After years of generous benefits and lavish spending, it's now time for reform and belt-tightening at the state enterprises. Bonuses should be based on results, and the raft of perks for board members needs to be cut back severely. Such changes should help reduce the cost of operations, cut big losses and even increase profits.

It is good practice to reward board members according to their expertise and experience, but appointing board members simply on the strength of their close ties to those in power threatens the corporate health of state enterprises.

The NCPO should avoid the mistakes of the past by ensuring that new board members are appointed for their ability to contribute to state-owned firms, and not for their connections.

-- The Nation 2014-06-19

[cloudhopper]

[Stradavarius37]

While I don't like the idea of a coup - this is the least bad coup you could have. General Prayuth is shining a floodlight on all the cockroaches and they are running for cover!

[Bocking]

No words needed

[johnno2]

oh lordy lord i'm loving this. I hope the Generals next mission is to drive all the crazy red farangs from Thaivisa

[lovetotravel]

It's not just Thailand that has problems with this. It's one of the reasons Japan had the Fukushima reactor melt down. Too cozy of a relationship between the inspectors and the energy company. Another example of how corruption can seriously hurt a country.

http://en.wikipedia.org/wiki/Fukushima_Daiichi_nuclear_disaster

Three investigations into the Fukushima disaster showed the man-made nature of the catastrophe and its roots in regulatory capture associated with a "network of corruption, collusion, and nepotism."^[47][48] Regulatory capture refers to the "situation where regulators charged with promoting the public interest defer to the wishes and advance the agenda of the industry or sector they ostensibly regulate." Those with a vested interest in specific policy or regulatory outcomes lobby regulators and influence their choices and actions. Regulatory capture explains why some of the risks of operating nuclear power reactors in Japan were systematically downplayed and mismanaged so as to compromise operational safety.^[48]

Critics argue that the government shares blame with the regulatory agency for not heeding warnings and for not ensuring the independence of the oversight function.^[49] The New York Times alleged that the Japanese nuclear regulatory system sided with and promoted the nuclear industry because of amakudari ('descent from heaven') in which senior regulators accepted high paying jobs at companies they once oversaw. To protect their potential future position in the industry, regulators sought to avoid taking positions that upset or embarrass the companies. TEPCO's position as the largest electrical utility in Japan made it the most desirable position for retiring regulators. Typically the "most senior officials went to work at Tepco, while those of lower ranks ended up at smaller utilities."^[50]

In August 2011, several top energy officials were fired by the Japanese government; affected positions included the Vice-minister for Economy, Trade and Industry; the head of the Nuclear and Industrial Safety Agency, and the head of the Agency for Natural Resources and Energy.^[51]

[Robby nz]

Same same for cabinet posts.

Ministers should be there based on ability not butt kissing or rewards for previous misdeeds.

[chooka]

meeting fees?

Aren't meetings part of the job description? Did they get paid extra to go to the toilet and read the newspaper?

[siampolee]

What an eye opener as to just how those in the position of power and one could also say trust have abused the system and ultimately the consumers along with taxpayers and no doubt one must include the assorted suppliers of goods and services to these people and their organisations as well.

All this legalized theft to ensure that they and their cronies political ,family and business wise can leach off of the state and its peoples for a lifetime .Those leaching actions are sad to say not even confined it seems in some cases just to the post or ex post holders.The whole family brood is included in this extortion racket.

Adequate rewards and perks at the going rate are fine and should indeed be part of the salary and benefits package thus attracting the right people for the right position in that industry.

Indeed those mind numbing revelations in the O.P. certainly show clearly that there is a big difference ''twixt passing wind and following through.''

Let us hope that the current administration and the subsequent administrations will continue this campaign to the benefit of the industries and organisations concerned and the public at large.

We now can come to understand why certain prominent personages in prominent positions in state enterprises and semi private enterprises feel it is a prudent move to vacate their offices and burn out their document shredding machines with overwork and of course work those shredding programmes on their and the office computers to their full extent.

[Dexlowe]

In Thailand, you pay golden peanuts, you still get flea-bitten monkeys.

[Roadman]

oh lordy lord i'm loving this. I hope the Generals next mission is to drive all the crazy red farangs from Thaivisa

Loving the positive garbage sweeping mission that the General has set as his bucket list as well but I disagree with the last bit. The crazy red, and 'coups are bad cause hisory is static', and 'the only requirement of democaracy is having elections' falangs serve a useful purpose for optimistic positive people to be able to identify quickly pessimistic negative people. And that is a neccessity in Thailand which sure does attract them.

[Tatsujin]

Let's not have any elections . . . the "junta" seems to be doing a great job so far and I would hate to see the politicians reverse all these positive steps forward. There's a long way to go, but I'm hopeful that at the end of the day this will be the start of something new and fresh for Thailand.

[NongKhaiKid]

Articles like this are as plentiful as those calling for education reform.

Can we dare hope the NCPO will really shake this tree and then avoid putting their own tame ' chosen people ' in post ?

Unfortunately with this and every other positive step the general has taken and will take what happens when the country is returned to civilian rule ?

For me it's a rhetorical question.

[smutcakes]

Articles like this are as plentiful as those calling for education reform.

Can we dare hope the NCPO will really shake this tree and then avoid putting their own tame ' chosen people ' in post ?

Unfortunately with this and every other positive step the general has taken and will take what happens when the country is returned to civilian rule ?

For me it's a rhetorical question.

I tend to agree, and the ideas that are being bandied around like this are very much needed!, although THAI must have some serious other issues, than just the perks the Board Members have been attracting.

However as you allude, lets hope that when replacements are found, they are replacements with the prerequisite knowledge and experience, rather than 'friendly'faces which would just exacerbate the whole cycle.

Wonder if they will dare get their teeth stuck into the SRT, which is probably the one area in the most need of a shake up.

[shirtless]

When the Junta has finished its role here , please do the same with the Australian politicians,

[maxme]

oh lordy lord i'm loving this. I hope the Generals next mission is to drive all the crazy red farangs from Thaivisa

Please enlighten us oh "All-in-the-name-of-democracy"... Who are they?

Sent from my iPhone using Thaivisa Connect Thailand

[NongKhaiKid]

Articles like this are as plentiful as those calling for education reform.

Can we dare hope the NCPO will really shake this tree and then avoid putting their own tame ' chosen people ' in post ?

Unfortunately with this and every other positive step the general has taken and will take what happens when the country is returned to civilian rule ?

For me it's a rhetorical question.

I tend to agree, and the ideas that are being bandied around like this are very much needed!, although THAI must have some serious other issues, than just the perks the Board Members have been attracting.

However as you allude, lets hope that when replacements are found, they are replacements with the prerequisite knowledge and experience, rather than 'friendly'faces which would just exacerbate the whole cycle.

Wonder if they will dare get their teeth stuck into the SRT, which is probably the one area in the most need of a shake up.

I'd hate to be the person tasked with drawing up a priority list of departments, organisations etc. requiring ' attention '.

To play with the words of the old aphorism about equality this time we can say " all are bad and some worse than others. "

[thumper101]

oh lordy lord i'm loving this. I hope the Generals next mission is to drive all the crazy red farangs from Thaivisa

I would certainly chip in towards their air fares.

[ezzra]

Talk is cheap they say... the proof is in the pudding... the road to hell paved with good intentions....

While I vigorously applaud at the well meaning junta plans to put this country on the right tracks

it yet to be seen.....

[chainarong]

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meeting fees?

Aren't meetings part of the job description? Did they get paid extra to go to the toilet and read the newspaper?

Something like those Oxygen Thief's in OZ chooka, go to a meeting twice a year and pick up twenty grand

Edited June 19, 2014 by chainarong

[scorecard]

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meeting fees?

Aren't meetings part of the job description? Did they get paid extra to go to the toilet and read the newspaper?

Yes meetings with a fee attached are normal in many such situations, nothing new at all.

But what you obviously are not mentioning is the factor of the amount of the meeting fee.

[MrWorldwide]

Let's not have any elections . . . the "junta" seems to be doing a great job so far and I would hate to see the politicians reverse all these positive steps forward. There's a long way to go, but I'm hopeful that at the end of the day this will be the start of something new and fresh for Thailand.

On the face of it, the junta is doing a lot of the things that need to be done - the pessimist inside me remains unconvinced that they will be able to change the underlying culture in many of the organisations that are being put under the spotlight. It took Lee Kuan Yew decades to convince Singaporeans that systemic corruption wasnt the way forward, and the General is talking about elections within a year : I guess time will tell if these changes have a lasting impact.

Lee took over in '59 but still had to deal with a corrupt politician in '86 - I wonder how many Thai politicans would feel the same degree of shame that the politician in question felt when he was caught with his hand in the cookie jar and subsequently trying to buy his way out of his predicament ?

http://www.themalaysianinsider.com/sideviews/article/my-mission-was-to-establish-a-clean-government-lee-kuan-yew

Prime Minister,

I have been feeling very sad and depressed for the last two weeks. I feel responsible for the occurrence of this unfortunate incident and I feel I should accept full responsibility. As an honourable oriental gentleman, I feel it is only right that I should pay the highest penalty for my mistake.

Yours faithfully,

Teh Cheang Wan

[VillageIdiot]

oh lordy lord i'm loving this. I hope the Generals next mission is to drive all the crazy red farangs from Thaivisa

I would certainly chip in towards their air fares.

How much?

[djjamie]

Talk is cheap they say. The PTP proved that time and again. They had 3 years to prove otherwise. Not once. Not once were they able to prove otherwise. The public gave them a chance. The majority gave them a chance. I gave them a chance. They failed. They failed miserably.

Actions speak louder than words. Without a word spoken, wIthout standing in front of a media pack, without going on TV, without parading around clucking his tail feathers pronouncing "look at me, I am the best and look at what I will do to protect the people" then going back into his CAPO office to threaten all the courts. Without any of that the Junta have squashed the Phuket taxi mafia, paid the farmers, increasing public traffic flow in Bangkok through clamping illegally parked cars, started the reform process transparently with public input (PUBLIC INPUT!!!!! something the PTP could have learnt from), arresting criminals and discovering illegal weapons caches that could have been used against the people that say "Talk is cheap they say" and now after they already proved with Thai airways that they would clean up state enterprise and after what I have seen since the 22nd of May I do not doubt it for a second that they will rationalize them. There are already 180 000 Cambodians that know the Junta mean business.

It seems there are still a few bitter, hate filled TVF members that doubt it and in fact it would not matter if it was the Junta, the DEM's or Mickey Mouses's club house doing the "right thing" for the country because they are not the PTP.

I for one look forward to this progressive all action and little talk approach and I know that when I was shacking and trying to sell my "off plan" condo at a huge loss on the 24th of May I am now smiling knowing that I can hold onto it and sell it at a huge profit upon completion.

So when one criticizes and denounces the democracy restoration team through a bitter rhetoric that died with the PTP, know that your doing it in a safer, healthier and more prosperous, confident Thailand.

Thank you General.

Edited June 19, 2014 by djjamie

[Seastallion]

In Thailand, you pay golden peanuts, you still get flea-bitten monkeys.

[djjamie]

oh lordy lord i'm loving this. I hope the Generals next mission is to drive all the crazy red farangs from Thaivisa

Please enlighten us oh "All-in-the-name-of-democracy"... Who are they?

Sent from my iPhone using Thaivisa Connect Thailand

haha. Yes, who are they?

Even they are too embarrassed to say they support the PTP now.

The amount of times I have read "The Junta is evil, the DEM's are evil. thaksin is misunderstood, yinglick is the smartest PM in Thai history, BUT I don't support the PTP or the red shirts" or "I really thought the PTP were doing a good job and I believe in democracy and one vote, BUT I don't support the PTP or the red shirts"

It is like me having an Essendon avatar on TVF and going to a football match wearing an Essendon shirt, Essendon face paint and clapping every time Essendon kick a goal, BUT I don't support Essendon.

Edited June 19, 2014 by djjamie

[billsmart]

Now these are the kinds of subsidies I agree Thailand would be better off without!

[Eric Loh]

Before we give the General a standing ovation, let see just who will be appointed as SOE board members. Let see he walk the talk and chose meritocracy instead of loyalty.

[Mister Max]

A benevolent dictatorship is superior to a corrupt democracy.

[HeavyDrinker]

I look everywhere but only see brown noses.....