News from Thailand – April 5, 2013

Prime Minister Yingluck can breathe easy for the time being and the stock market immediately rebounded. Yesterday, the National Anti-Corruption Commission (NACC) acquitted her of concealing assets, an offense for which she could have been impeached.

The NACC bases its decision on research by the Bureau of Asset Inspection (BAI). The BAI concluded that Yingluck had no intention of excluding the 30 million baht loan she granted to Ad Index in three installments in 2006 and 2007. Yingluck's husband was a shareholder in this company at the time. [The newspaper previously wrote that he is a shareholder in the company.] Politicians are required to declare their assets when they take up office.

The stock market reacted with relief. At the start of the day, the SET index fell 40,11 points, but at the end of the day the index was up 7,96 points from its close on Wednesday.

Although Yingluck has been acquitted, the case is not closed. When Yingluck's premiership ends, her net worth will be rechecked against the data collected by the BAI. Yingluck has instructed her legal team to find out why the NACC is continuing the case.

– Nothing true. Army commander Prayuth Chan-ocha says Thailand is not the most likely target of terrorist attacks in Asia. Prayuth responds to a statement made this week by DSI head Tarit Pengdith, who concluded this from a conversation with the cultural attaché of the US embassy. Prayuth made a call to the military attaché, who allegedly apologized for the 'misunderstanding'.

Thailand's top ranking as number 1 in Asia and number 5 worldwide, according to Tarit (head of the Department of Special Investigation) is based on research by the FBI in the US and UK. That research is largely based on violent incidents and victims in the three southern border provinces, says Prayuth. Compared to other countries, it is understandable that Thailand is rated as more violent. But that violence does not happen every day and not in every district in the South, the general said.

Prayuth emphasizes the need to correct the message, because misconceptions about Thailand could damage the country's reputation and tourism industry.

– Rural doctors will continue to call it quits if the government does not reverse its decision to halve the inconvenience allowance and introduce a performance-based payment. In the first two months of this year, 146 doctors left their posts in protest, said Arak Wongworachart, former president of the Rural Doctors Society.

According to a survey by the National Health Security Office, 3.425 doctors work in rural areas, often in isolated areas with minimal resources. Each doctor cares for 48 patients per month. [Calculation error?] If the outflow continues, this means that the workload of those left behind will increase. Some small hospitals already run into problems when only one doctor leaves.

Vachira Bothpiboon, director of Chum Puang District Hospital in Nakhon Ratchasima, saw one doctor leave in January. The remaining six doctors now treat a population of 65.000 souls. They have to work extra hours, 24 hours in a row at weekends and they cannot take time off to visit their parents, for example.

Minister Pradit Sintawanarong (Public Health) does not care about all the complaints. According to him, performance-related pay encourages doctors to continue working in rural areas.

– More about rural doctors from Thursday's paper. The exodus of rural doctors won't be all that fast now that the Ministry of Health has halved the inconvenience allowance and replaced it with performance-based pay. Only a handful can go to private hospitals because they mainly need specialists. Most country doctors, who hang up their lyre, start their own business.

Boon Vanasin, owner of the Thonburi Hospital Group, says the government will continue to face protests against the change in fees and threats that it will lead to an exodus of doctors. He points out that rural doctors are paid better than doctors in Central Plains hospitals and large state hospital chains.

A rural doctor earns 100.000 baht per month against doctors in provincial hospitals 70.000 baht. In addition, rural doctors only provide basic health care and refer more difficult cases to the provincial hospital.

– One soldier died and nineteen others were injured in a bomb attack Wednesday night in Krong Pinang (Yala). The blast ripped to pieces a military bus carrying 26 soldiers returning from the selection of conscripts. The explosion left a hole 1 meter deep and 2 meters wide in the road. After the explosion, ten militants fired on the bus. The ensuing firefight lasted about 15 minutes.

In Tanyongmas (Narathiwat) yesterday afternoon a bomb exploded at a place where conscripts had to report. No one was injured.

The militants who kidnapped and killed a soldier in Rueso on Monday night have been identified. All eight suspects come from Bacho district, where militants carried out a failed attack on a naval base in February. The killing is believed to be revenge for that attack, which killed 16 militants.

The village chief of Moo 4 in tambon Talomaena (Pattani) was shot dead in front of his house on Wednesday evening. The district chief says the motive was a local political conflict.

– Minister Plodprasop Suraswadi, chairman of the Water and Flood Management Commission, says he wants to spend 5 billion baht over the next 11 years on reforestation projects in the basin of the Chao Praya and other rivers. Trees will be planted on 200.000 rai next year, reducing the risk of flooding. The Royal Forest Department and the Department of Natural Resources and Environment are also carrying out reforestation projects, but they would not interfere with Plodprasop's plans.

– Ikea has found horse meat in the meatballs delivered to the restaurant of the Bang Na branch. The meatball has been taboo since February after DNA from horses was found in a batch. The balls came from one supplier in Sweden. Bad luck for lovers of a ball, but in the coming months they will have to do without it.

– Aiam Khambhiranong donates 1 million baht to Wat Rai Khing in Sam Phring (Nakhon Pathom). He previously donated 400.000 baht in 2011 and 1 million baht in 2012. Special? Yes, because he has collected the money by begging at the temple for the past 34 years.

– The public prosecutor and police are arguing over whether Red Bull heir Vorayuth Yoovidhya, who killed a motor police officer in his Ferrari in September, should be prosecuted for driving under the influence and violation of the speed limit. The question is whether he drank before or after the accident. Two experts have testified that he was not speeding. In one case, Vorayuth risks a prison sentence of 2 years, in the other case 10 years. The police go for the first option.

– A 37-year-old teacher from Anongvet Kindergarten School in Samut Prakan is prosecuted for negligence because she left a 3-year-old girl in a school bus yesterday. The girl was discovered six hours later by the driver of the van and had lost consciousness in the sweltering heat. She is now in a coma in the hospital.

Political news

– Opposition party Democrats continues to follow the legal path to make life difficult for ruling party Pheu Thai, which they cannot defeat in parliament. The party is going to the Constitutional Court with a request to review the constitutionality of the parliamentary assembly on the amendment of the constitution. In addition, the Rules of Procedure would have been violated.

For the first three days of the week, a joint meeting of the House of Representatives and Senate considered proposals to amend four articles of the constitution. A senator tried to get the Court to stop proceedings this week, but that attempt failed.

The Democrats now point out that the chairman should have adjourned the meeting at some point because the quorum was missing. Parliament then debated the three committees that will study the proposals in more detail. The government proposed to allocate 15 days for this, the opposition 60 days. The chairman decided for 15 days, but according to the Democrats, the meeting should not have taken place. He also instructed the three committees to meet on Thursday morning.

Democrat Jurin Laksanavisit says the state of affairs has a hidden agenda and aims only to promote the political and economic interests of certain groups of people. Democrat Nipit Intarasombat believes that the three committees should return the proposals to parliament so that they can be discussed again.

– Meanwhile, the People's Alliance for Democracy (PAD, yellow shirts) is also making itself heard. Concrete actions have not yet been announced against both the constitutional amendment and the 2 trillion baht loan for infrastructure works.

In particular, the proposal to deny the population the right to file a complaint with the Constitutional Court is causing bad blood. In the future, the complaint should pass the Attorney General. "This is clearly an attempt to limit the rights of the people and increase the power of the government," said PAD leader Parnthep Pourpongpan.

PAD leader Chamlong Srimuang says the constitutional amendment and the loan could lead to another national crisis due to corruption and national debt. If the government changes the law to weaken the monarchy and grant amnesty to former Prime Minister Thaksin, the PAD will take to the streets again, he says.

– Ackaratorn Chularat, former president of the Administrative Court, is 'baffled' by academics' claims that the Constitutional Court has no power to intervene in the legislative process. This is because of the separation of powers.

“I don't blame those who don't know any better, but those who do are spreading false information. How can they say no one is above elected MPs?'

According to Ackaratorn, the Constitutional Court has an essential role in assessing the legislative and executive powers against the constitution. In many countries, a Constitutional Court or a Supreme Court checks this.

Economic news

– The Central Bank's Monetary Policy Committee on Wednesday the policy rate unchanged at 2,75 percent. The committee did express concern about the brisk trade in real estate and equities. The market is interpreting the MPC's stance as a trend toward rate hikes, but the committee would be split on whether to do so this year.

Paiboon Kittisrikangwan, assistant governor of the central bank, says the vote (5 to 1) reflects the MPC's position on the effect of the bath's appreciation on the economy. It also illustrates increasing concerns about household debt and the rapid rise in real estate and equity prices. "The MPC believes the economy is strong enough and can adapt to changes in the exchange rate."

According to the MPC, domestic demand is the main driver of economic growth. This will be further stimulated when the funds from the 350 billion baht budget for water management projects are invested and the start of the infrastructural works from the 2 trillion baht loan.

Looking abroad, the MPC sees slightly increased risk in the eurozone, but better prospects in the US, Japan and China. Therefore, exports will increase slightly.

Analysts at HSBC expect the MPC to raise the policy rate at the end of the third quarter. Citibank expects the appreciation of the baht to continue somewhat this year and believes that interest rates will remain unchanged throughout the year.

– In the Airports Council International's ranking of airports that handle more than 40 million passengers per year, Suvarnabhumi has moved up one place: from seventh place in 2011 to sixth place last year. The management considers a further promotion to the top five possible. The airport scored better on all eight passenger satisfaction criteria.

– The government maintains its forecast of export growth of 8 to 9 percent this year, despite lingering risks such as the global economic downturn, increasing trade barriers, natural disasters and the appreciation of the baht.

In February, exports fell by 5,8 percent to US$17,9 billion and in baht by 11,3 percent to 530 billion baht. Exports of rice, shrimp, rubber, fruit, vegetables and frozen poultry were negative; those exports decreased by percentages ranging from 6,5 to 22,2 percent. The decline in industrial products was not too bad: minus 2,6 percent.

According to Minister Boonsong Teriyapirom (Trade), the appreciation of the baht is the main culprit. "Industries that rely primarily on labor and domestic raw materials are the hardest hit." The minister advises exporters to tighten their belts and look for cheaper sources of imported raw materials, because - he thinks - the baht remains strong and may become even stronger.

– Cambodia will get a second airline. After Cambodia Angkor Air took to the skies in 2009, another will join in June, Cambodia Airlines, jointly owned by the Cambodian Royal Group and the Philippine conglomerate San Miguel Corporation. The new airline will start with domestic flights and will fly on international routes from October. Cambodia is currently served by twenty foreign airlines.

www.dickvanderlugt.nl – Source: Bangkok Post