News from Thailand – August 23, 2013
Thanks to a cigar butt, the proof has been provided: jet-set monk Wirapol Sukphol is the father of an 11-year-old boy, whose mother he impregnated when she was 14 years old.
The butt, given to a follower as an amulet by Wirapol, still contained enough DNA from the monk to compare with the DNA of the mother and son. The DNA matched 99,99 percent, Anek Yomjinda, director of the Central Institute of Forensic Science, said yesterday when presenting the results of the DNA test.
In addition to the butt, the institute also had two pieces of the monk's robe and an amulet with remnants of betel nut phlegm, but these were of no use. The test results are so convincing that no further investigation is needed into the monk's brother's claim to be the father.
Wirapol, now a monk, is not only accused of having sex with the then underage girl, but also of tax evasion, drug use, false statements about a doctor's degree and his supernatural gifts, manslaughter and money laundering. The case came to the news because of a video showing the monk in a private jet.
The monk is said to be in Laos and would like to turn himself in. Sukij Phulsrikasem, a supporter of the ex-monk, who mediates, says he will hear today whether the monk will report to the authorities. Wirapol is aware of the DNA results.
– The baht dollar exchange rate has reached its lowest level in three years and the stock market has fallen to its lowest level since November last year. Since the US Federal Reserve predicted last month that the US economy will improve this year and stimulus will be reduced, foreign investors have been selling their stocks and bonds and fleeing to major economies such as the US and Japan.
The baht has fallen to 32,09/32,13 against the dollar. This year the currency has shrunk by 5 percent. Other Asian currencies are also struggling. The Malaysian ringgit fell to its lowest level in three years, the Philippine peso ditto in two months, the Indonesian rupiah (minus 0,4 pc) ditto since April 2009 and the Indian rupee to 65,56, the lowest level this year.
The stock market index lost 7,4 percent in the past six days and closed yesterday at 1.351,781 points with a 0,25 percent decrease in active trading worth 57,9 billion baht. The Philippine stock market was the biggest loser in the region.
Pongpen Ruengvirayudh, deputy governor of the Bank of Thailand, says the central bank will take action if the baht continues to depreciate at an accelerated rate. But the baht is now moving in line with other regional currencies, which are also experiencing capital outflows. The difference is the pace, as the baht has a higher risk of instability.
Concerns about capital outflows are one of the reasons why the bank's Monetary Policy Committee this week decided the policy rate at 2,5 percent, although economic growth is slowing. Banks derive their interest rates from this rate.
– Eighteen officials are suspected of having stolen 4,3 billion baht by fraud with the refund of VAT. An investigative committee of the Ministry of Finance and the Department of Special Investigation (DSI, the Thai FBI) have discovered this. Four of the eighteen have the function of senior director en specialist at C-9 level; the rest are officials at the operational level.
The Ministry will conduct a disciplinary investigation into the four top officials, the fourteen others are the responsibility of the Tax and Customs Administration. Areepong Phucha-um, permanent secretary of the ministry, said yesterday that the ministry will expand its investigation to see if officials at even higher levels are involved in the fraud.
The ministerial committee and the DSI have examined twenty companies. They encountered fraudulent tax refunds of 1,13 billion baht (province of Samut Prakan) and 3,2 billion baht (Bang Rak, Bangkok). The DSI will take criminal action against the suspects, the Anti-Money Laundering Office will try to retrieve the money that was printed back.
As mentioned earlier, fake companies were set up with fake transactions on which VAT was claimed back. Workers and farmers in Pichit and Tak were paid 200 to 500 baht for illegally using their ID cards, which were needed to set up businesses. The tax refund was arranged remarkably quickly, says Prasit Suebchana, inspector general of the ministry. Some companies also tampered with the prices of the goods.
The Tax and Customs Administration says that 38 entrepreneurs are involved in the fraud and probably ten civil servants at the service. The fraud would have cost the government 2,87 billion baht. According to director-general Sathit Rangkhasiri, an internal investigation has not yet revealed any evidence of corruption, at most 'negligence'. The service will not take disciplinary measures against the officials involved. [Certainly afraid of being caught in their trap.]
– Malaysia has stabbed Thailand with a feather in an indescribable part of the body for the peace talks that the country is conducting with resistance group BRN. Vice Prime Minister Tan Sri Muhyiddin, visiting Thailand, told her in a conversation, Yingluck said yesterday. Malaysia pledges to wholeheartedly support the initiative to bring peace to the South and is ready to cooperate with Thailand throughout the process, Yingluck said.
During the conversation, the issue of dual nationality of some Myanmarese also came up. Thailand suspects them of having links with the insurgents. Yingluck asked Tan to check their fingerprints. She also asked for a joint meeting to discuss other issues with dual nationals.
– You have to dare. A PTT Global Chemical Plc pipeline breaks and oil washes up on Koh Samet beach and now the company is filing a police complaint over 'false information' given to the press. The company's legal department is currently reviewing the media coverage in detail to determine whether legal action is required. The reporting would damage the company's reputation. The message does not state exactly what 'false information' it concerns.
Penchom Saetang, chairman of Ecological Alert and Recovery Thailand, meanwhile questions the reliability of a panel formed by parent company PTT with the approval of the ministry to investigate the oil spill. The investigation was conducted as an internal matter, and information that the population has been told is dubious, she says. Penchom has called on Prime Minister Yingluck to form a new independent panel with no members who have interests in the energy sector. The population must also have representatives in it. On Tuesday, the Prime Minister will receive a letter with this request, supported by 30.000 signatures.
– The National Anti-Corruption Commission is investigating the selection of members of provincial anti-corruption commissions [or something like that because the report is very vague and only speaks of 'provincial graftbusters']. There would be favoritism. The NACC invalidated the election in Roi Et and Trang provinces because the candidates were relatives or wives of the selection committees. There are alleged conflicts of interest and bribery in 27 other provinces.
– The use of liquid silicone for cosmetic injections can be fatal or cause long-term health problems, according to a study by the Thailand Academy of Facial Plastic and Reconstructive Surgery. Liquid silicone is now increasingly used instead of solid silicone. It is easier to use and cheaper.
The silicone is injected into the nose, forehead and cheeks or for those who want a larger penis or larger breasts. There is a risk that small particles can enter the cardiovascular system of the lungs and brain and form clots that are difficult to remove and can be fatal, said academy president Cholthis Sinratchatanant.
– Female Muslim officers may now wear the hijab as part of their uniform, if it is up to a police commission that has investigated the regulations regarding the police uniform. Muslim women may also wear a long-sleeved shirt or blouse and trousers that cover the ankles. According to the committee, the headscarf does not hinder the work of an agent.
About XNUMX Muslim female police officers work across the country. Sixty of them have made a request to wear the headscarf. The chief commissioner of the Royal Thai Police may take the decision.
– The public prosecutor will decide on Monday whether Red Bull heir Vorayuth Yoovidhya, who killed a motorcycle police officer in September last year, will be charged. The decision has already been postponed four times. After September 3, Vorayuth can no longer be prosecuted for his speeding violation. According to the chief prosecutor, the delay is due to the suspect's request to hear another four eyewitnesses. Thong Lor police have yet to hand over information about it to the public prosecutor.
– The city council of Bangkok has taken a remarkable initiative to increase people's safety: free rides with a song taew in remote streets during the evenings. The free pickup trucks with a passenger compartment, equipped with two benches, drive on the back in all districts of the city between 21 and 24 hours.
– The two Iranians who had wanted to commit a bomb attack on Israeli diplomats last year were sentenced yesterday to 15 years in prison and life imprisonment. Saeid Moradi (home page photo), who lost his legs because an explosive he threw away bounced back, was sentenced to life in prison; the second suspect got 15 years. The judge weighed heavily on the fact that Moradi carried the explosives in public and had tried to kill officers. During the incident, the roof of a house on a side street of Sukhumvit soi 71 was blown off because explosives accidentally exploded.
Political news
– On the third day of the consideration of the bill on the election and composition of the Senate yesterday, the debate in a joint meeting of the House of Representatives and Senate progressed extremely slowly. At issue was Article 3, which puts the number of senators at 200, compared to 150 today. The opposition and nominated senators debated the proposal for hours without making any progress.
Expanding the Senate will cost the government 5,1 million baht more per capita per year, suggested Senator Wicharn Charnchaiekkawat, or 1,5 billion baht per 6-year term. Democrat Prakop Jirakitti proposed reducing the number of senators to 100. He said that number should be enough for them to function in the upper house, which is tasked with scrutinizing laws and appointing or removing members of independent institutions. The Senate should consist of 'knowledgeable' members.
The Senate bill was supposed to be voted on last night, but the vote has been postponed until next week, leaving parliament today free to continue its consideration of the 2014 budget. The necessary hard nuts have already been cracked about this.
Financial economic news
– And again Minister Kittiratt Na-Ranong (Finance) showers the central bank with criticism. He doesn't like the bank's policy rate and questions the management of $170 billion in foreign reserves, given that the bank has 3 trillion baht of liquidity.
According to Kittiratt, absorbing too much liquidity affects the exchange rate. Kittiratt thinks the bank mishandled the exchange rate. He even accuses the bank of being responsible for the instability of the baht in the second quarter, which hurt exports.
Fortunately, this bombshell has nothing to say about the bank's monetary policy. "As finance minister, I can only express my concerns," he says. Kittiratt has pleaded countless times before for interest rate cuts to boost the economy [because he can make a good impression with that]. He doesn't seem to mind that inflation then rises. [Sorry for my cynical comment.]
– Despite warnings that the line is not worth the investment costs, the planned high-speed line Bangkok-Hua Hin will continue. 'The Hua Hin route is the only way to connect to the Thai-Malaysian border at Padang Besar. We are committed to executing the development plan," said Transport Minister Chadchart Sittipunt yesterday while visiting the 2013 Home Buyers' Expo/NPA Grand Sale/Home Loan at the Queen Sirikit National Convention Center.
The Bangkok-Hua Hin Line is one of four high-speed lines that the Yingluck government wants to build. The lines will be built in phases, except for the Rayong-Pattaya route, which will be built in one phase. Construction of the first phase of the four routes (Bangkok-Phitsanulok, Bangkok-Hua Hin, Bangkok-Rayong and Bangkok-Nakhon Ratchasima) should be completed in 2019.
The Bangkok-Hua Hin route measures 225 kilometers and costs 82 billion baht. According to a study by a consultant, the ERR (economic rate of return) is 10,7 percent, less than the 12 percent target set by the Department of Transport. According to Chadchart, the route yields a higher ERR if the line is extended to Prachuap Khiri Khan, Chumphon or beyond.
Chula Sukmanop, director general of the Office of Transport and Traffic Policy and Planning, says the government should invest in other routes if the route is not worth the investment cost.
Pridiyathorn Devakula, former governor of the Bank of Thailand, called on the government in June to scrap plans for the four lines. He refers to a study that shows that some routes are only profitable when 41.000 passengers are transported per day. Domestic airlines don't even carry that many passengers at the moment. The high-speed train ticket will probably be more expensive than tickets from budget airlines, while flying is also faster.
– The Government Savings Bank (GSB) will monitor lending more strictly, now that economic growth is slowing down. The bank's emphasis will be on the quality of the loans to prevent an increase in the number of NPLs (non-performing loans).
That percentage has increased slightly this year: from 1,1 percent at the beginning of the year to 1,3 percent of the outstanding credit of 1,7 trillion baht. The bank has lowered its growth target for loans from 7,5 to 7 percent. It is expected that 100 billion baht will be lent this year, half less than last year.
Incidentally, the GSB runs less risk than other banks because half of the loan portfolio consists of loans to civil servants. Repayment and interest are automatically deducted from their salary. In this group, the percentage of NPLs is only 0,3 percent.
– Channel 3 enters its advertising rates prime time increase by 5 to 10 percent on weekends. The hours between 17.45:19.15 and 12:XNUMX p.m. have been found to be popular with families. Many advertisers would like to advertise during that period. However, it is regulated by law that a maximum of XNUMX minutes per hour may consist of advertising on free TV channels.
Channel 3 broadcasts during the evening slot Thai versions of many foreign programs, such as Thailand Got Talent, The Voice, The Voice Kids en Dance Your Fat Off. From the beginning of October Thailand Dance Now aired, an adaptation of an Australian program.
The time allotted for soap operas during the week has been extended by 15 minutes: from 20.15-22.30 to 20.15-22.45. The advertising rates in this slot don't lie about it. At the moment it is Suparburoot Chutathep a big hit. In honor of the king's birthday, a 5-part miniseries will be broadcast from the end of this month until the end of the year, Garlic Mai Khong Por.
– The Thai capital is one of the few office markets where occupancy rates and rents are rising. This is because demand is increasing and supply is low. After Manila and Wellington, Bangkok nevertheless remains the cheapest office location, according to the Asia Pacific Office Market Review from CB Richard Ellis.
– In a desperate attempt to get rid of its massive rice stocks, the government is going to allow foreign government agencies and foreign rice traders to buy rice directly. So far, the government has sold the rice through G-to-G contracts (government to government) and domestic auctions, but sales have been disappointing.
Less than half of the 550.000 tons auctioned has been sold in the past two auctions and a contract has been signed with Iran for the supply of 250.000 tons. Next month, the government plans to sell 150.000 tons through the Agricultural Futures Exchange of Thailand. According to rice traders, the rice is too expensive while world demand is weak. Traders also have their doubts about the quality of the rice [which has been stored for a long time].
The warehouses and silos currently hold 17 million tons of rice, which has been bought from farmers over the past two rice seasons. According to Minister Niwatthamrong Bungsongpaisan (Trade), some foreign government departments and trading companies from China and the Middle East have shown interest in Thai rice.
Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, warns that this new channel is doing more harm than good for Thai exports and rice prices. This opens the way for international traders to compete directly with Thai exporters. Ultimately, that affects the price of rice on the world market.'
www.dickvanderlugt.nl – Source: Bangkok Post