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Posted

This week, I was re-watching some old episodes of The Sopranos, an American series about the mafia in New York/New Jersey. An episode had the guys visiting a new Starbuck's in the neighborhood, with the intent of extorting protection money. Two old school toughs pulled aside the 20-something manager and demanded their "tea money". "Can't do it, The home office tracks all expenses," the manager replied. What if we put you in the hospital? "They'd send a new manager that same day." Well, what if all your windows somehow were broken? "They'd replace them the same day." What if the place burned down? "They'd rebuild the same month." The mafioso left the shop dejected, bemoaning the "good ol' days". Naturally, I wondered about Thailand. I knew one acquaintance (from the Netherlands) who had to close 2 successive businesses in Pattaya and then BKK (cafes, not bars) because the payments to police were so extreme that he could not make any money to support his Thai family. I had dinner at his cafe in BKK, and the police came TWICE within 2 hours for payments (the owner complained to me that the police come by so often, they get confused). The fellow eventually persuaded his Thai wife to come the Netherlands, with their children. I'm left to wonder how much damage is done to the economy by the police and their incessant demands for black money. Also, I wondered if only small businesses were victims, or do the large franchises pay bribes as well? Do any members here have any experiences to share? How much is "typical"? For me, I've always wanted to start a small business in Thailand, but the "unknowns" of corruption keep me from doing so...sorry for the long preamble to my question...

Posted

If you get all the correct licenses to run a business you don't have to pay them anything and they know it.

I know a guy who owns and operates a bar / restaurant right in the tourist ghetto and he pays nothing but he has all the correct licenses for selling food, alcohol and tobacco, employs a bunch of Thai's, has a work permit, etc.

It's not a 'naughty bar' in any way. Just a regular pub which also sells food.

Occasionally they used to come in and try it on and he points to the licenses prominently displayed on the wall at the end of the bar and they're on their way with no money changing hands.

Most people don't get these licenses. From what I've heard it's not hard but I think you might need to go down the official company route to do it this way.

If you don't go down the correct route you leave yourself open to all sorts of crap as mentioned above.

  • Like 1
Posted

large businesses don't pay "protection money" in quite the same way. They pay bureaucrats + politicians for contracts, rights to do this and that. Regarding money lost due to the corruption, recall that 30% is the commonly understood figure for how much extra a business has to allocate for a project to keep the wheels greased.

  • Like 1
Posted

Surely this thread discussing an illegal activity can't last much longer?

tea is not a controlled substance and its consumption is perfectly legal.

Posted

I've had a few of them tell me how much they "donated." My response was that was a lot less than we would pay for liability insurance in the US, to cover you against slip and fall experts, ambulance chasers, and the whole bit.

Posted (edited)
For me, I've always wanted to start a small business in Thailand, but the "unknowns" of corruption keep me from doing so...sorry for the long preamble to my question...

Corruption and extraordinary "business expenses" are hardly unique to Thailand. Business has thrived in Chicago (and other major US cities) even though the police, fire & building inspectors, politicians, mafia et al have demanded tea money in one form or another for ages ... though it may not be as blatant now as it was back when Daley Senior ran Chicago. Certainly parts of Europe have a thriving mafia not financed through voluntary contributions. And when it comes to corruption, the calendar boy for under the table deals is not Thai.

20100612_berlusconi-silvio11173019.jpg

And there are plenty of businesses, both small and large, managing in Thailand.

Most small businesses fail, whether in Thailand or the US or elsewhere, because of poor planning & execution by the people attempting to run them. So many people in Thailand decide to start a business that is exactly the same as 101 existing businesses or else they want to start a business in a location where there's no exposure to potential customers or a business that shows a total disregard for the local market demand.

A lot of people come to Thailand and think they'll run a small business to generate a small income or to stave off boredom and fail to survive. But then more farang come and assume they will succeed because they're so much smarter than all those who failed before them. All of them find excuses to explain their failure ... and the reasons usually shift blame on to someone else ... like the collection of tea money.

What corruption-free country do you come from?

Edited by Suradit69
  • Like 2
  • 1 month later...
Posted
For me, I've always wanted to start a small business in Thailand, but the "unknowns" of corruption keep me from doing so...sorry for the long preamble to my question...

Corruption and extraordinary "business expenses" are hardly unique to Thailand. Business has thrived in Chicago (and other major US cities) even though the police, fire & building inspectors, politicians, mafia et al have demanded tea money in one form or another for ages ... though it may not be as blatant now as it was back when Daley Senior ran Chicago. Certainly parts of Europe have a thriving mafia not financed through voluntary contributions. And when it comes to corruption, the calendar boy for under the table deals is not Thai.

20100612_berlusconi-silvio11173019.jpg

And there are plenty of businesses, both small and large, managing in Thailand.

Most small businesses fail, whether in Thailand or the US or elsewhere, because of poor planning & execution by the people attempting to run them. So many people in Thailand decide to start a business that is exactly the same as 101 existing businesses or else they want to start a business in a location where there's no exposure to potential customers or a business that shows a total disregard for the local market demand.

A lot of people come to Thailand and think they'll run a small business to generate a small income or to stave off boredom and fail to survive. But then more farang come and assume they will succeed because they're so much smarter than all those who failed before them. All of them find excuses to explain their failure ... and the reasons usually shift blame on to someone else ... like the collection of tea money.

What corruption-free country do you come from?

Posted

As kblaze has said, the usual accepted figure for getting a government contract of any sort is approximately 30%

But even getting the appropriate permissions and licenses can cost extra under the table fees. Getting his annual work permit renewed, a friend of mine's company was simply told it could go to the bottom of the pile (i.e. not get looked at until he was months or more illegal) or he could contribute to "new uniforms" for the office staff. I don't know exactly what that contribution was but obviously another example of tea money.

Posted

Than the Dutch guy the op talks about was doinging something illigal.

They come in my office about twice a year, never immigration or revenue but always the normal bib, offering this and that for a small fee or asking for a christmas bonus. Never give in, we have everything legal and once you start these practices you are their slave. Always thank them politely and good bye.

  • Like 1
Posted

Too many words make pain between your ears? Maybe pictures would help.

people who write long comments without any paragraphs should be hit with double tea money.

Posted

Too many words make pain between your ears? Maybe pictures would help.

people who write long comments without any paragraphs should be hit with double tea money.

i am not wasting time to discuss colours with blind people whistling.gif

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