Thai editorial: Corruption abates slightly, but not nearly enough

[webfact]

EDITORIAL
Corruption abates slightly, but not nearly enough
The Nation

For the consumer's sake and the good of the country's business overseas, graft has got to go

BANGKOK: -- Investors from Japan, from which the largest amount of Thailand's direct foreign investment comes, have called for reduced corruption and improved transparency in order to help restore confidence in the Kingdom.

Setsuo Iuchi, chief representative of the Japan External Trade Organisation (Jetro) for Asean and South Asia, last week called on the ruling National Council for Peace and Order to kick-start good governance that includes combating corruption and ensuring transparency, particularly about doing business in Thailand. "Now it’s a good time for Thailand to bring about good governance for the new era," he said.

Such concern by the Japanese investors should not be ignored, because they have brought the largest amount of direct foreign investment into Thailand. The Japanese invested over Bt290 billion in projects approved by the Board of Investment last year. That was nearly 30 per cent of the total foreign investment of Bt1.1 trillion, according to BoI data.

Thailand has generally remained attractive to foreign investors due to positive factors, such as the availability of skilled labour, efficient infrastructure and transportation systems, location and the considerable size of the domestic market. But our chronic corruption is scaring away existing and prospective foreign investors. Countless foreign firms and investors have complained about the "extra costs" of doing business in Thailand, by which they mean kickbacks and under-the-table money that must be to bureaucrats and politicians. Often they have to pay in exchange for procurement deals with state agencies and public projects. People who refuse to pay are routinely left behind by their bribe-paying competitors. University of the Thai Chamber of Commerce (UTCC) rector Saowanee Thairungroj has estimated that corruption adds 30 per cent to costs for businesses. That, she says, translates into reduced competitiveness for Thai-made products and reduced credibility for Thailand among foreign investors.

General Prayuth Chan-ocha has made tackling corruption a top priority for the ruling military junta. He says the fight will be part of sweeping national reform, together with good governance, transparency and an efficient and effective system of checks-and-balances. Thailand's corruption index in the first half of this year improved for the first time in five years, according to a UTCC survey. The index in June was registered at 46 out of a possible 100, compared to 39 last December, says Thanavath Phonvichai, UTCC vice rector of research and director of its Economic and Business Forecasting Centre. He surmises that the improvement could be due to positive public sentiment following the junta's campaign against corruption and organised crime. The survey also showed that bribes paid to officials and politicians by the private sector had declined to 15-25 per cent of project costs, from an average 25-35 per cent previously.

Despite the seemingly slight improvement in the situation, corruption remains a major problem for Thailand.

In addition to the weakened competitiveness and reduced credibility, the public as a whole is affected by corruption. Contractors who pay corrupt officials and politicians have to cut costs at the building site, and that means poorer quality in their public projects and thus a risk to life and limb.

Businesses who pay bribes also offset their higher costs by charging the consumers more.

Since corrupt authorities and politicians make money and bribe-paying businesses make profits, it is the consumers and the public in general who suffer.

They end up paying more unnecessarily for products and public projects, the quality of which is poorer. Corruption should be eliminated, or at least minimised, for the sake of the country and its people.

 

Source: http://www.nationmultimedia.com/opinion/Corruption-abates-slightly-but-not-nearly-enough-30239274.html

 

[thenation]2014-07-24[/thenation]

[terryp]

never going to happen here ..too many accept i.

 

Until people are jailed for seriously long terms with ALL assets confiscated...& the idiotic moving to inactive posts is stopped then its going to continue

[siampolee]

Corruption abates slightly, but not nearly enough

 

 

This is one small step for Thailand, one giant leap for politicians, military, police and public servants in general along with business people and the Thai people as a whole.

 

Let us hope this little tidal movement will grow into a tsunami of the cleansing of corruption..

 

With apologies to the late Neil Armstrong for the literary licence taken with his quote.

[HiSoLowSoNoSo]

"bribes paid to officials and politicians by the private sector had declined to 15-25 per cent of project costs, from an average 25-35 per cent previously."

 

And they think that they can root out corruption here, dream on.

 

[ozsamurai]

The survey also showed that bribes paid to officials and politicians by the private sector had declined to 15-25 per cent of project costs, from an average 25-35 per cent previously.

 

Does anyone else find it amusing that they actually have 'a survey' to judge the corruption levels?

 

"Hello, I'm from dial a survey, can I have five minutes of your time to ask you about corruption?"

"Have you or any member of your family been extorted in the past 24 hours?"

"Have you or any business you are associated paid more than 30% towards corruption?"

 

Oz

[selftaopath]

Only when individual punishment is equal to the crime consistently will Thailand change enough to be applauded. 

[noitom]

These Thai statistics are highly questionable. How does the Thai press get these preposterous statistics? Why didn't they monitor this Thai corruption before? What gives with the Thai press?

[iphad]

My question re. the OP post is if the Japanese Investors are still paying towards corruption ....why?..and if they are..are they reporting to the Military Government who they are paying?

If the Military Government isn't or doesn't do anything then I see corruption continuing & not much has changed.

If no one is coming forward to say they are paying & to whom & it's all under the table then how can any charges be processed or expect any changes.

To me the Japanese Investors or whoever have to come forward & name names.

Then see where the chips lie.

[ikke]

Most corruption is from the uniformed, so 90% of the officials, but sure Police, and for business Customs are the worse.

Even with the right import license, all paperwork proper done, they don't release your goods until you pay, for me the Thai custom department at Leam Chabang and at the airport are the most corrupt of all officials in the country.

[kotsak]

It's FUBAR, never gonna happen.. 

[daveAustin]

As others, can't happen. It's in the genes such that it would require the eradication of much of the populace in order to start over. The tenets of Buddhism are truly lost here.

[craigt3365]

As others, can't happen. It's in the genes such that it would require the eradication of much of the populace in order to start over. The tenets of Buddhism are truly lost here.

 

Corruption exists in every country in the world.  In one form or another, at one level or another.  It's a sad fact of life.  But it can be reduced here.  A strong and independent judiciary is needed.  Thailand has relatively good laws, but they aren't enforced properly.  Once enforcement happens, things will change.  But it takes a strong political will, a desire from the public, and a corruption free judiciary.

 

Interesting to read how Singapore tackled this many years ago.  Draconian, but effective:

 

http://www.businessinsider.com/why-china-should-study-singapores-anti-corruption-strategy-2012-12

[lostsoul49]

The real effects will come when reforms kick in.

 

Corruption has abated slightly, but the big changes are yet to come and they will likely come via the judiciary and how they punish it to make it a good deterrent.

 

I think it is far too simple to be cynical and hold onto the 'it is accepted and won't go away' attitude.

 

If the powers that be want it gone, then it can at least be eradicated to a degree.

 

Corruption is present in every country in the world, but exists at differing levels. Thailand just needs to get into the lower levels for it to be uncommon rather than an everyday mechanism.

 

On a slightly separate note.

 

Japan invested $290 Bn ???

 

That will be around the same amount as what has walked out of Thailand through massive corruption from just s few schemes that I won't name.

[lostsoul49]

 

Since the junta took over, all corruption has came to a sudden stop. Praise for our great supreme leader and PM to be.

 

15-25 per cent be a sudden stop?

 

 

It has gone down by one third... It's a step in the right direction.

 

33% drop is quite big for a 2 month term without even any reforms in place yet.
 

Edited July 24, 2014 by lostsoul49

[hanuman2543]

How long do the Thai people need to understand that corruption always favor the rich?

[NongKhaiKid]

Time for another opinion poll to see if  there's any change from the usual result of the majority polled seeing nothing wrong with corruption providing it's not excessive and everyone can share.

[Oziex1]

Had we all been living in a different time and place Japan, Korea or China for example. I'm sure many of us would have been as scathing and cynical as many are in Thailand today. Where are those Countries now and where are they heading, there was no overnight success, however Japan's industrial economic rise was quite rapid and no doubt helped by the fact that a big expensive military machine was forbidden. 

 

Are those countries corrupt ? Sure, as much as Thailand ?

[Estrada]

The survey is rubbish! I see no change in the amount of corruption, the survey was carried out covering the 6 months after the Pheu Thai Government resigned. That means that the large infrastructure project contracts, which usually carry a 30% to 40% "incentive", were not being awarded. That left only smaller contracts and purchasing incentives which carry the lower 15% to 25% "incentive". Personally from experience of doing business here during many crack downs on corruption I have never seen any change of the rate of "incentives" asked for. Indeed Chulalongkorn University carried out an in depth investigation into corruption and incentives paid to obtain Government contracts between 1970 and 2000 and found that the average was almost constant at 30%. with a maximum of 40%. We are still awaiting the contract awards for the major infrastructure projects to be awarded towards the end of this year and 2015. Only then can one say that there is a reduction in the amount of "incentives" paid as a result of the corruption crack down.

[Cake Monster]

The sooner that this country wakes up to the fact that it has become rotten to its very core - the better.

10 years ago this proud country had people that were a little bit naughty and grafted a few baht here and there, but now the graft is rampant throughout Thai society, and is no longer on a small scale.

Corruption on the scale seen here, is not only detremental to business, and to the reputation of Thailand, the good Thai people deserve better, and so do their children.

[Thai at Heart]

"bribes paid to officials and politicians by the private sector had declined to 15-25 per cent of project costs, from an average 25-35 per cent previously."
 
And they think that they can root out corruption here, dream on.
 

Who the hell do they survey to find this out?

[Emster23]

Hercules labor of cleaning the stables seems like a quick wipe of counter top by comparison. Even with a large shovel it takes time to move a mountain.

[blazes]

Corruption in Thailand is a mere pimple when set beside the example of Japan, who somehow (well no, not somehow) come off smelling like a rose in business malfeasance. 

 

No one should forget the brave (and rare) whistle blowing of the English CEO of Olympus, Michael Woodforde.  He was quickly frogmarched out of Japan when his exposure of the company's dirty tricks went public. 

 

You can read an excerpt from his account of this criminal activity here:

 

http://www.businessinsider.com/michael-woodford-exposure-olypus-scandal-2014-3

[wwest5829]

My question re. the OP post is if the Japanese Investors are still paying towards corruption ....why?..and if they are..are they reporting to the Military Government who they are paying?
If the Military Government isn't or doesn't do anything then I see corruption continuing & not much has changed.
If no one is coming forward to say they are paying & to whom & it's all under the table then how can any charges be processed or expect any changes.
To me the Japanese Investors or whoever have to come forward & name names.
Then see where the chips lie.

You know very well that naming names lands you in Thai court whether the accusation is true or not.

[jcisco]

 

As others, can't happen. It's in the genes such that it would require the eradication of much of the populace in order to start over. The tenets of Buddhism are truly lost here.

 

Corruption exists in every country in the world.  In one form or another, at one level or another.  It's a sad fact of life.  But it can be reduced here.  A strong and independent judiciary is needed.  Thailand has relatively good laws, but they aren't enforced properly.  Once enforcement happens, things will change.  But it takes a strong political will, a desire from the public, and a corruption free judiciary.

 

Interesting to read how Singapore tackled this many years ago.  Draconian, but effective:

 

http://www.businessinsider.com/why-china-should-study-singapores-anti-corruption-strategy-2012-12

 

The judiciary is hardly the place this needs to begin, the only way a popular clamp down on corruption would be facilitated is via a ethical, motivated and trained police force.  Remember we are in this current situation of Junta cause the police force was unable to discharge its duties to a utter lack of accountability or leadership.

 

Corruption will forever flourish if the gate keepers of upholding the social contract and protecting the citizens are actually the barbarians at the gate.  It is all a total lack will or perhaps just moral corruption that erodes away at the police  ethics and visa versa. 

 

The judiciary is far easier to bring into line, but alas they too depend on the police to protect the entire system and its people.  So it won't make a damn worth of difference until you eliminate some of the serious issues at the RTP.   I am not at all referring about petty corruption as in the opportunistic sort, that is not the problem. 

 

The RTP may not be the corruption investigator for the major investigations, but their actions over more common acts, will influence and support the rest of the country in getting things done.  

-

 

I have lived in Singapore for nearly ten years and due to my industry have been notified of some serious breaches of conduct in the public service, but primarily in Government Owned companies, public and entirely within the commonwealth.   They deal with it swiftly and effectively, but importantly it is done without much fuss and rarely makes the paper. 

 

And in nearly every case the act reported was theft and the method was collusion within an organization between a check and its balance.  Easy mistake to make, sometimes they are just to physically close together. And not everyone is aware of the authorization and verification structures so it happens sometimes and millions disappear. 

[craigt3365]

Exactly right.  I probably didn't explain what I was thinking properly.  The police are the #1 problem in Thailand today.  Reform is drastically needed.  But even with a reformed police force, if the judiciary is corrupt, you're back to square one!

[joecoolfrog]

Heads Up !
No need to choke on your beer Suriya4 was being amusing, just a little light sarcasm !

[Local Drunk]

Corruption in Thailand is a mere pimple when set beside the example of Japan, who somehow (well no, not somehow) come off smelling like a rose in business malfeasance. 

 

No one should forget the brave (and rare) whistle blowing of the English CEO of Olympus, Michael Woodforde.  He was quickly frogmarched out of Japan when his exposure of the company's dirty tricks went public. 

 

You can read an excerpt from his account of this criminal activity here:

 

http://www.businessinsider.com/michael-woodford-exposure-olypus-scandal-2014-3

 

So you think corruption here is just a pimple... Are you comparing it to the Japanese to make the pimple look better? Is corruption in Thailand OK because the Japanese businesses do it better? OK, Olympus's stocks plummeted because of what is written in your link. Why? Because the corruption was exposed. 

 

By the way... Nice read. 

[rreddin]

 

As others, can't happen. It's in the genes such that it would require the eradication of much of the populace in order to start over. The tenets of Buddhism are truly lost here.

 
Corruption exists in every country in the world.  In one form or another, at one level or another.  It's a sad fact of life.  But it can be reduced here.  A strong and independent judiciary is needed.  Thailand has relatively good laws, but they aren't enforced properly.  Once enforcement happens, things will change.  But it takes a strong political will, a desire from the public, and a corruption free judiciary.
 
Interesting to read how Singapore tackled this many years ago.  Draconian, but effective:
 
http://www.businessinsider.com/why-china-should-study-singapores-anti-corruption-strategy-2012-12

 

Corruption at all levels may be reduced to a much lower level given sufficient time. Sufficient time, however, is what this current exercise will not be given. I recall, some years ago, the Chief of Police in Mexico starting a similar exercise to root out corruption in the police in that country. He was asked how long he thought it might take to accomplish the task. He said it would take at least 30 years as all of the existing officers would have to be replaced with non-corrupt police when their careers ended.
 
Thailand has to think in a similar time frame. In Thailand, the entire public sector workforce that has to be replaced.

[joecoolfrog]

Bernard Flint
I think you should read what I posted earlier !

[craigt3365]

A few posts commenting on the coup and the military have been removed from view.  Along with some associated replies.  Apologies, but there is still scrutiny of the media for these things.