Lots of news today about everything related to the rice mortgage system and the government's desperate attempts to find money to pay the farmers. Brace yourself.
– The Ministry of Commerce has come up with a new plan. It will ask the rice millers to advance money so that farmers can be paid. The farmers should receive half of what they are entitled to.
The farmers, who started a demonstration in front of the Commerce Ministry in Nonthaburi yesterday, have already rejected the plan. Manat Kitprasert, president of the Thai Rice Mills Association, initially supported the plan, but will now consult its members first.
Prasit Boonchoey, president of the Thai Farmers Association, doubts the plan is viable. The millers have to borrow money for this and need the government as a guarantor. But he is demissionary and can only look after the store. Prasit thinks that, as with the 130 billion baht loan the government is trying to extract, the banks will keep their purse strings tight to avoid legal complications.
In the ministry's plan, the interest to be paid by the millers would be borne by the government. Minister Yanyong Phuengrach (Trade) says that the government will ask the Electoral Council for permission to remove 1,2 billion baht from the budget for this. According to the minister, the farmers could be paid this month if the millers agree.
– Protest leader Suthep Thaugsuban yesterday launched the idea to break into the rice silos, extract the rice and sell it. In a speech in Silom, he said he sympathized with the rice growers. “They are indebted to the banks, but the government has not paid them for the rice they have surrendered. And now the government wants to borrow money from financial institutions, but nobody wants to lend money.'
– The demonstration by farmers from Ratchaburi and surrounding provinces is entering its second day today. The farmers have settled for the Ministry of Commerce in Nonthaburi. They stay there for three days. Yesterday they spoke with senior officials of the ministry, but they did not lead anywhere. The permanent secretary of the ministry passed the hot potato on to his minister.
A group of farmers from the North has petitioned the Office of His Majesty's Principal Private Secretary for help amid government default.
The newspaper reports nothing about roadblocks. Breaking News reports that the blockade of Rama II road, the main route to the South, has ended after six days.
In the posting Videos about Bangkok Shutdown and Elections a video with images of the demonstration for the ministry.
– The Bank of Thailand has no indications that depositors make unusually large withdrawals. That rumor is circulating because banks are said to be considering providing the government with a loan to pay the farmers.
Although the Council of State rules that the government is entitled to take out the loan, banks are hesitant to make money available. A caretaker government could violate the constitution with a loan, because it is not allowed to enter into obligations that have consequences for the next government.
The government needs 130 billion baht to pay farmers for their surrendered rice. Many have been waiting for the money since October. The loan is auctioned weekly in amounts of 20 billion baht. During the first two weeks, it was not possible to interest banks.
- Thai rice exporters do not expect rice orders to be adversely affected by China's cancellation of the purchase of 1,2 million tonnes of rice under a G2G (government to government) contract. "We all knew from the beginning that the deal couldn't be true because it wasn't done through China's state-owned enterprise," said the president of the Thai Rice Exporters Association. Last year, China imported only 327.000 tons from Thailand.
– The Krunthai Bank announces through a notice on its ATM screens that it does not lend money to the government to finance the mortgage system for rice. With this announcement, the bank hopes to regain the confidence of its customers, who are concerned about this. On Tuesday, the president of the bank reassured all staff, who were dressed in black.
The government is desperate for a loan of 130 billion baht to pay farmers for the rice they have surrendered since October. The banks are keeping their purse strings because the loan could be in violation of the constitution (see above).
– Hurry up and sell rice and don't blame others for the lack of payment to the rice growers. That is what opposition party Democrats say to Prime Minister Yingluck. Party leader Abhisit believes that Yingluck, who chairs the National Rice Policy Committee, should put an end to cases of corruption in the rice mortgage system. According to him, the government is hesitant to sell the rice bought from the farmers, because then information about the quantity and quality of the stored rice would become known.
Former Democratic MPs in the central and western provinces are going to campaign for the return of the surrendered rice if payment is not made by the government. The farmers can then sell the rice themselves. The government should compensate them for the time it has kept the rice in stock.
Other news
– Pridiyathorn Devakula, former governor of the Bank of Thailand and finance minister, demands the resignation of Prime Minister Yingluck and her cabinet in an open letter. He advocates the formation of a 'neutral' government. Pridiyathorn calls the government a 'failed government', which has failed to successfully complete its most important missions. She lacks the qualities to lead the country.
The government reacts as if stung by a wasp. In a counter-open letter, Minister Kittiratt Na-Ranong (pictured right) calls Pridiyathorn's proposals "unfair" and show a lack of respect for democratic principles. "Maybe he wants to become Prime Minister himself," sneered Minister Surapong Tovichakchaikul.
As examples of failures, Pridiyathorn cites the rice mortgage system, the solar panel project and the formation of a National Reform Assembly.
Images from the press conference he gave yesterday can be seen in the posting Videos about Bangkok Shutdown and Elections.
– For the first time, Chinese soldiers participate in the annual Thai-US Cobra Gold military exercises. However, their role is limited to humanitarian aid, they are not allowed to play war. 4.000 Thai soldiers and 9.000 US soldiers are participating in the exercises, along with small numbers of soldiers from Singapore, Japan, South Korea, Indonesia and Malaysia.
– A Thai woman has won a flight in the Lynx Mark II sub orbital spacecraft. The lucky one, Pirada Techavijit, works at the Geo-Informatics and Space Technology Development Agency. Pirada was one of 23 winners of a competition sponsored by Ax deodorant. Last year she attended a camp in California where she was trained as an astronaut and was introduced to weightlessness and supersonic speeds. Next year it's time. In California. The entire flight lasts an hour, the weightless state six minutes.
– The police in the South have arrested five people, including former agents and defense volunteers, who are suspected of financing the southern unrest. They engaged in drug smuggling, gun smuggling, and foreign worker smuggling.
In Rangae (Narathiwat) a rubber tapper was shot dead yesterday while he was at work. A roadside bomb, intended for an escort team of teachers, exploded in Sungai Padi. The team arrived later so no one was injured.
– The Public Prosecution Service has had enough: it no longer grants a delay to Suthep Thaugsuban to receive his indictment for murder in 2010. For the third time, Suthep's lawyer had asked for a postponement. Suthep, as well as then Prime Minister Abhisit, is charged with murder for allowing the army to use live ammunition during the red shirt riots.
– The wife of the murdered sports shooter Jakrit Panichpatikum, her mother and two other suspects have withdrawn their earlier confession. All four denied the allegations yesterday in Min Buri Provincial Court.
Jakkrit was shot dead in his car in Ramkhamhaeng in October. His mother-in-law has previously stated that she ordered the murder to protect her daughter and children from mistreatment by Jakkrit.
– The National Anti-Corruption Commission asks the court to confiscate 296 million baht from Sathian Permthong-in, former permanent secretary of the Ministry of Defense. The NACC does not believe that part of the money he claims was earned from the sale of amulets, land, gems, and property, with the remainder belonging to his adopted child and military colleagues.
Bangkok shutdown
– Today and Monday, the protest movement is holding a fund-raising march to raise money for farmers who have been waiting months for payment for their surrendered rice. The goal is to collect 10 million baht, said action leader Suthep Thaugsuban yesterday in a speech at Pathumwan.
– Director Chalerm Yubamrung of the CMPO, which is responsible for the state of emergency, demands that the demonstrators end the siege of the Interior Ministry within four days. If not, he will send a thousand agents and defense volunteers after them. The protest leader at the ministry says they are not leaving, but they will allow the officials to enter.
As previously reported, the court has issued arrest warrants against 19 protest leaders. The CMPO has formed 12 teams, tasked with arresting them. The CMPO wants to apply for arrest warrants for another 39 protest leaders.
In addition, proceedings are pending before the civil court. Protest leader Thaworn Senneam has asked the court to lift the emergency ordinance. The court wants to hear Prime Minister Yingluck, Chalerm and the chief of police on Monday.
– Last night, two grenades were thrown at the Chaeng Wattana protest location. No injuries have been reported. It is the first time this location has suffered a grenade attack. Earlier, grenades were thrown at the Victory Monument and in Lat Phrao. Those two locations have been discontinued.
Chaeng Wattana protest leader Monk Luang Pu Buddha Issara has been issued an arrest warrant for obstruction of the January 26 primaries. Issara's lawyer is appealing.
The protest movement and the Electoral Council have agreed on access for the 1.800 Electoral Council employees to the government complex on Chaeng Wattana Road. They will go back to work there from today. For safety reasons, they have to go home at 16 pm.
The Department of Special Investigation is no longer negotiating with the monk, now that he has a warrant for his arrest.
– The Indian businessman, who is in danger of being deported from the country for participating in the protests, is going to court to prevent this. The CMPO accuses him of violating the Emergency Ordinance. He would also have participated in the blockade of the Civil Aviation Department.
Satish Sehgal says he has not been active since the day the state of emergency was declared. Before that, he was one of the speakers at the rallies and led protesters in Silom's business district. Sehgal is the president of the Thai-Indian Business Association.
Political news
– Former governing party Pheu Thai is in decline, concludes Somchai Jitsuchon of the Thailand Development Research Institute based on the ballot results. PT received 10,77 million votes against 15 million in the previous election in 2011. The protest movement that boycotted the election 'received' 16,37 million votes (non-voters, No and Invalid).
– Pichet Panwichartkul, former Democratic MP for Krabi, retires from politics. He called it a day on February 5, the day of his 70th birthday. Pichet was Secretary of State for Finance in the Chuan government (1999-2001). Pichet has no objection to the boycott of the elections by the Democratic party, but he disagrees with party leader Abhisit's decision not to vote.
Economic news
– Now that the Chinese supplier has pulled out, the Ministry of Education will again try to find a company that will supply the 800.000 tablet PCs for the Prathom 1 students of education zone 1 and 2. In a month the school year will end and the children will have that fun toy not yet in hand. The Chinese company should have delivered the tablets in December, but is now waiving it, partly because of a difference of opinion about the contract and the current political situation in Thailand.
– The president of the Small and Medium Enterprises Bank of Thailand (SME Bank) gets his congé. The board of directors has unanimously dismissed him because he is underperforming. The staff of the bank also wants the man gone. Although the notice period is 30 days, the Executive Board has asked him to immediately pack his bags. In 2012, a president was also fired; for the same reason: the bank is not doing well.
Last year, the bank posted a net profit of 407 million baht against a loss of 4,04 billion baht a year earlier. At the end of last year, the percentage of NPLs stood at 33,7 percent. The bank expects this percentage to drop to 31,6 percent after transferring some loans to Sukhumvit Asset Management.
www.dickvanderlugt.nl – Source: Bangkok Post
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The Bangkok Breaking News section has been canceled and will only be resumed if there is reason to do so.
Bangkok Shutdown and the elections in images and sound:
www.thailandblog.nl/nieuws/videos-bangkok-shutdown-en-de-keuzeen/
First of all I would also like to thank you Dick for the Breaking news that you have provided for us here at the TB in recent months, great class!!
I have to get this off my chest without going too much into Thai politics because I have always believed that this is a Thai affair.
But how crooked can it be, the outgoing government is not allowed to guarantee it can only look after the shop.
The same government that is responsible and partly guilty of how the shop stands now, she can watch out for that.
It comes across to me a bit like giving a pyromaniac the key to a fireworks depot and then telling him to watch out for this.
Because that's basically the way it is, this government has something in its possession that is not theirs, namely rice, and then damn them to sell it, because then they will probably find out that this rice is of poor quality .
And that rice farmer and his family just wait for his money, he who got up early every morning with his family to plant and harvest that rice with his ass up in the scorching heat and in the burning sun.
And then you read a few days back that Mrs. Yingluck has strengthened her bank account with 50 million baht in the last government period. how crooked can it be!
Yesterday I responded to the fact that there is no money available for the rice farmers and I wondered if there would be money for the tax refund for the purchase of a first car.
And yes, 2 days after the expiry of the term, the full amount was deposited into my girlfriend's account. So there is money for this and that too was more than the government expected when they started the campaign. So, who can explain that?