News from Thailand – February 9, 2013

The 'continuing story' of the demolished construction of 396 police stations and 163 police service flats is entering its umpteenth episode. The subcontractors, to whom the work was outsourced by the contractor, threaten to take legal action because they have not received anything or never received the full amount for their work.

One of them, Worawuth Pithak, had to take out a loan to finance the construction of two police stations in Khon Kaen, assuming that he would receive 19,2 million from the contractor [PCC Development and Construction Co], but he only got 2 million baht. His company should have built a police station in Ubonrat and one in Mancha Khiri. When they were 70 percent done, he had to stop work because he ran out of money.

Worawuth told all this to the Department of Special Investigation (DSI, the Thai FBI), which is investigating the controversial case. The DSI has now spoken with about ten subcontractors. They lost between 5 and 10 million baht.

According to another subcontractor, about a hundred subcontractors have been duped by PCC. They are now jointly considering going to the Administrative Court with a request to order the Royal Thai Police [contractor of the construction] to compensate them for their losses. The RTP should have ensured that the work was not subcontracted, as this was contractually prohibited.

See for more information News from Thailand from February 8.

Photos: Agents in Kuchinarai (Kalasin) are still working in an emergency building. Their office was demolished, but the new building has been shut down.

– The archenemies UDD (red shirts) and PAD (yellow shirts) have reached an agreement on the submission of two amnesty proposals. On Thursday, red shirt leader Korkaew Pikulthong and yellow shirt core member Parnthep Pourpongpan came to parliament at the invitation of the vice-chamber speaker to discuss another amnesty proposal.

Korkaew and Parnthep agreed on a proposal to grant amnesty to people who violated the state of emergency 5 years ago [those are yellow shirts] and a proposal to set up a committee to assess whether others are also eligible for amnesty. In that committee, not only the ruling party Pheu Thai, but also the opposition party Democrats and the wife of a general who was shot dead in 2010 should have a vote. The PAD does not take a seat on the committee because it does not want to be used as a wheelbarrow for amnesty claims.

In addition to the two proposals on which the ruffs agreed, there are three more proposals for amnesty. They regulate amnesty for all persons arrested for political offenses between September 2006 (military coup) and May 2011 (end of the red shirt protests). They were submitted by the UDD, the Independent Committee for Promotion of the Rule of Law and Nitirat, a group of lawyers from Thammasat University. They differ in details and in procedure. Nitirat's proposal goes the furthest [it would also include amnesty for Thaksin], but all three exclude perpetrators of crimes.

During the consultations, the position of former Prime Minister Thaksin, who was sentenced to 2008 years in prison in 2, was also discussed, and against whom several cases are still pending. Red Shirt leader Korkaew has stated that the possibility of excluding Thaksin from amnesty has been discussed, but "the outcome of the consultations has yet to represent the views of the entire group."

– Not 2,2 trillion baht but 2 trillion will the government borrow for investments in infrastructure. Minister Kittiratt Na-Ranong says the amount has been reduced to limit the national debt, which currently amounts to just over 40 percent of gross domestic product, to 50 percent. The cabinet will consider the proposal in mid-March and it will be submitted to parliament at the beginning of April.

Of the 2 trillion baht, 1,6 trillion baht goes to the railways, of which 753 billion baht is earmarked for the construction of a high-speed rail line. 386 billion baht is for metro lines, 95,5 billion baht goes to the railways and 372 billion baht is earmarked for the construction of railway tracks with a different width.

The Railways are the problem child. They have an accumulated loss of 100 billion baht. According to figures from the Asian Development Bank (ADB), the number of passengers has decreased by 1992 percent since 40 and the amount of cargo has decreased by 2002 percent since 30.

James Leather, transport specialist at the ADB, says the first priority should be to transfer the debt to the government along with a 3 billion baht recapitalization. "Railways with such a low passenger volume as the SRT [State Railway of Thailand] cannot afford the infrastructure costs from operation." According to Leather, proper maintenance of the rails costs 6,5 billion baht annually, but the SRT has had no financial means to maintain the rails for the past 30 years.

– The Bangkok Electoral Council has yet to formally rule on the petitions of two independent candidates for the post of governor of Bangkok to ban polls. But Electoral Council member Somchai Jeungprasert says that research agencies have the right to publish the results of opinion polls, provided they do not violate local electoral rules.

Only when polls deliberately mislead or manipulate the public to persuade voters to elect a particular candidate do they violate the Local Election Act. When a complaint is submitted, the Electoral Council must investigate it. Violation carries a prison sentence of 1 to 5 years, a fine of up to 100.000 baht and a ban on polls for 5 years.

The two independent candidates have complained that the polls focus only on candidates from the governing party Pheu Thai and opposition party Democrats and ignore independent candidates. They would mislead the voters. In their petition, the petitioners do not write about which polls are involved. Four authorities have now published poll results. On March 3, the Bangkokians go to the polls.

Muslim leaders and residents in the violence-ravaged South have derided Vice Prime Minister Chalerm Yubamrung's idea of ​​imposing a limited curfew. That only makes the situation worse, they say. A curfew is ineffective and prevents residents from earning their income.

Chalerm launched the idea on Wednesday following the assassinations in Yaring (Pattani) of farmers from Sing Buri and in Krong Pinang (Yala) of four fruit sellers from Rayong. Chalerm will discuss the idea with security services on Friday.

Minister Sukumpol Suwanatat (Defense) has already said that a curfew is not necessary and that position irritates Chalerm. "If Sukumpol knows better, he should take over my job." Sukumpol now denies that he disagrees with the curfew. The proposal has provoked mixed reactions. All opinions must be judged. If the authorities decide to impose a curfew, then so be it.'

– The Organization of Islamic Cooperation (OIC), which in November last year called the progress of the government in the South 'lean', has moderated its tone. Thailand is more cooperative with the OIC in solving the problems in the Deep South. The government is doing better in terms of information provision.

A statement containing that text was issued after the 12th session of the Islamic Summit Conference in Cairo. The Thai government is pleased with the statement. At the end of January, a delegation from the OIC, accompanied by Minister Surapong Tovichatchaikul (Foreign Affairs), visited the area.

– A Furby robot toy ad 2.990 baht, offered via Instagram, people wanted that, because the toy costs 5.500 baht in the store. Some 52 people paid the amount, some of whom ordered a large number at once, but the Furby was never delivered. The police have now arrested a woman. She has stated that she has transferred the amount received, totaling 7 million baht, to the 'real seller'. An arrest warrant has been issued against an accomplice.

– The Board of Directors of Thai Airways International has bowed to the union's wage demands, which were reinforced in January by a strike by ground staff. Workers earning less than 30.000 baht will receive a wage increase of 7,5 percent and above paid 5,75 and 4 percent; an average of 6,77 percent. An amount of 300 million baht is also earmarked for bonuses, to be distributed among the 26.000 employees.

– About two hundred people yesterday attended a public hearing on a bill that provides equal marriage rights for same-sex couples. The meeting was organized by the Rights and Liberties Department and the parliamentary committee on legal affairs.

The commission began work on the bill last year after a male couple seeking marriage filed a complaint. Three more hearings will be held on the bill.

According to committee chairman Viroon Pheunsaen, the law will not be changed, but couples will be given the opportunity to legally register their relationship in a so-called 'civil partnership'.

– The Highway Department will accelerate the work on the highway to the deep-sea port of Laem Chabang to solve the chronic traffic problems. At the port, the road will be widened to 14 lanes. Other projects are being brought forward. Every day, 60.000 vehicles arrive at the port. Traffic problems are particularly serious on Wednesdays and Saturdays. The port handles 6 million TEU per year (20-foot equivalent unit containers).

– Nobel laureate Harold Kroto is concerned about the declining interest of both students and teachers in science subjects, despite the fact that technology is playing an increasingly important role. 'Personal beliefs and superstitions still have a greater influence on people than facts based on scientific grounds.'

Kroto was a key speaker at the International Peace Foundation's fourth annual Bridges: Dialogues Toward a Culture of Peace meeting. According to the photo caption, he also taught at Shrewsbury International School in Bangkok.

– This month is an exciting month for Thailand, because it will be decided whether Thailand will remain on the Tier 2 Watch List of the American Trafficking in Persons Report, drop a step or be removed from it. The Ministry of Employment hopes the latter.

According to the Director General of the Employment Department, Thailand is calling for the verification period for foreign workers to be extended by three months, starting December 14. Once migrants have completed it, they are legal and entitled to social benefits.

The Tier 2 Watch List lists countries that are not doing enough to combat human trafficking. When Thailand enters the Tier 3 Watch List, trade sanctions are to be expected.

– The Democratic party launched the Future Innovative Thailand Institute yesterday. This independent institute will work with input from the population for three years on a national development blueprint with objectives to be achieved by 2020. The first three areas of study chosen are economics, education and administration.

Malaysia started a similar process 20 years ago, said Surin Pitsuwan, former Asean secretary general who will head the institute. This has led to an increase in the average income per capita to $9.000 (268.110 baht) per year. In Thailand it is currently $4.000.

– Nakhon Si Thammarat Police have arrested three members of a drug ring led by a former inmate from Nakhon Si Thammarat Central Prison. That man has since been transferred to Bang Kwang Prison in Nonthaburi, but he is still dealing drugs. Drugs, ammunition, cash and four cars were seized during the arrest. The three could be arrested thanks to the statement of a previously arrested woman.

In Songkhla province, the police achieved a similar success. Two people were arrested there and drugs with a street value of 140.000 baht were seized. A third man was caught in an undercover operation and a 17-year-old boy was subsequently arrested.

– The Thai Tobacco Trade Association opposes the plan of the Ministry of Health to increase the deterrent pictures on cigarette packs from 55 to 85 percent of the surface. Small sellers would be the victims of this, says the association, and there is no room left to provide product information. If the plan is approved, Thailand will overtake Australia where the plates cover 82,5 percent of the area.

– The fish at the 304 Industrial Park in Prachin Buri contains higher concentrations of mercury than the prescribed limit, says the Pollution Control Department. The PCD examined 23 samples from two rivers and six canals in Si Maha Phot district. No dangerous concentrations were measured in the water and sediment samples.

– Between Friday and May 15, the use of 'destructive' fishing nets is prohibited in parts of the Gulf of Thailand. During this period, the fish spawns. The ban applies to 26.400 square kilometers of sea in Prachuap Khiri Khan, Chumphon and Surat Thani. The mackerel in particular likes to lay eggs there. Last year, fish stocks increased 2,34 times after the three-month ban.

Economic news

– 'Decreasing the policy rate, as advocated by the Minister of Finance and Business, would be a serious misstep. A reduction in the rate could result in higher inflation and a bubble in domestic wealth, ultimately leading to a more serious problem in the future.” This says Raymond Maguire, Thailand strategist at Swiss bank UBS AG.

Edward Teather, senior economist for Asian at the same bank, even advocates an increase in the policy rate, to cool property prices and curb inflation as the global economy picks up and the domestic situation improves. Teather thinks Thailand's strong purchasing power and an increase in investment later this year will attract more capital. He does not consider it inconceivable that the Central Bank's Monetary Policy Committee will policy rate therefore increased from 2,75 to 3,5 percent.

“We expect,” says Teather, “that the central bank will tighten policy by the end of the year while allowing the baht to rise. The powerful baht will shift the burden of that tightening from the domestic economy to exporters. The baht is expected to rise rapidly against the dollar this year, but the impact on exports is less than it seems because the US share of exports is only 10 percent.

Thailand can continue to compete on price, Teather predicts, as the currencies of other trading partners will also appreciate. "A recovery in the Singapore dollar and the Malaysian ringgit after the middle of the year should make exporters less concerned."

– Orient Thai Airlines, the first low-cost airline in Thailand, has cut its scheduled flights under the pressure of cutthroat competition and is now focusing entirely on the profitable charter market. Last month, the airline ended its flights from Don Mueang to Chiang Rai and Hat Yai. Remaining are two daily flights on the Bangkok-Chiang Mai and Bangkok-Phuket routes. They are both considered basic routes and are mainly used by the airline to avoid losing its licence.

The charters mainly transport Chinese tourists to Thailand. They are doing relatively well and are unaffected by competition in the domestic market, especially from Thai AirAsia. Orient Thai Airlines exists 18 years and transported 290.000 Chinese to Thailand last year.

The cut in domestic flights is also prompted by the Civil Aviation Department's requirement to employ a certain percentage of Thai pilots. The company has already been fined three times for a total amount of 1,5 million baht, because it does not meet or cannot meet that requirement. And again a fine threatens. Thai pilots are hard to come by. They prefer to fly with airlines in the Middle East where they can earn more.

– The mortgage system for rice will probably lose around 2011 billion baht for the 2012/60 season, the same as the price guarantee system of the Abhisit government. Final figures are already known for the first harvest, namely a loss of 20 billion baht; the loss of the second crop is an estimate, according to the Bank of Agriculture and Agricultural Cooperatives [which pre-finances the mortgage system].

In the 2011/2012 season, 21,6 million tons of rice were offered: 6,9 million tons in the first harvest and 14,7 million tons in the second harvest. The total cost was 200 billion; the calculation of the loss of 20 billion baht in the first harvest is based on market prices. The loss on the second harvest can increase even further because the quality of the stored rice deteriorates, causing the sales price to fall.

2012 million farmers participate in the mortgage system in the 2013/2012 season (October 2013-September 1,3). So far, they have mortgaged 9,33 million tons of rice worth 151 billion baht.

Farmers participating in the system receive 15.000 baht for a ton of white rice and 20.000 baht for a ton of Hom Mali (jasmine rice), prices that are about 40 percent above the market price.

– Thailand has 338 biogas plants with a total capacity of 637 million cmpd (cubic meters per day) and 71 are in the design phase or under construction. When complete, the capacity will be 1,4 billion cmpd, significantly more than previously predicted, says the Energy Policy and Planning Office (Eppo).

Secretary General Suthep Liamsiricharoen says capacity will reach 1,41 billion cmpd in a few years. Since the government announced in 2008 that it wanted to stimulate the use of biogas, Eppo has received 414 applications. Last year the number rose sharply because energy prices rose. Biogas is also popular because the Energy Conservation Fund provides concessions and soft loans.

Of the installations in use, 55 use palm oil, 25 starch, 24 processed food, 6 ethanol, 2 rubber and the rest other material.

www.dickvanderlugt.nl – Source: Bangkok Post