Thread: Thailand struggles against tide of corruption

Analysis: Thailand struggles against tide of corruption
Ambika Ahuja
(Editing by Jason Szep and Andrew Marshall)
Tue Sep 28, 2010


Thailand's Prime Minister Abhisit Vejjajiva speaks during a news conference after a cabinet meeting in Bangkok August 31, 2010.
Credit: Reuters/Chaiwat Subprasom

BANGKOK (Reuters) - From minor bribes to dubious multi-billion-dollar procurement deals, corruption is as endemic as ever in Thailand despite the fastest economic growth in 13 years and a government led by an Oxford-educated technocrat.

British-born Prime Minister Abhisit Vejjajiva, a 46-year-old economist, signaled zero-tolerance for graft when he took power in December 2008 with fellow a Oxford University alumnus, Finance Minister Korn Chatikavanij. But corruption indicators show graft remains deeply rooted two years into Abhisit's administration.

The reason lies in one of the fundamental weaknesses of his premiership -- he holds on to power only with the support of networks of politicians, generals and bureaucrats whose reputation for probity does not match his own, and who epitomize the patronage politics that has long bedeviled Thailand.

"The regulatory framework in Thailand is quite good but whether it is put into practice is a different issue," said Kanokkan Anukansai, Thai programme manager of anti-corruption watchdog Transparancy International.

"The lack of stability makes it hard to make tough, potentially politically damaging decisions."

Corruption allegations have shadowed a $42-billion government-spending plan to rescue Thailand from recession. Questions were raised over procurement projects involving security forces, while abuse-of-power complaints against police and provincial officials remain a staple of local media reports.

Abhisit faces an uphill struggle if he is to get his fractious coalition government under control, rally popular support and challenge his backers to achieve much-needed reforms.

UNHOLY ALLIANCES

To form a government, Abhisit has been forced into uneasy alliances. A case in point is Bhumjai Thai, a party whose support is crucial to Abhisit in his six-party coalition government.

The party's de facto leader Newin Chidchob is famed as one the country's most skilled practioners of patronage politics, but is banned from parliament due to past alleged infractions.

Official Bhumjai Thai leader Chavarat Chanvirakul oversees the Interior Ministry where he has been accused of auctioning off provincial governor posts to the highest bidder.

He's also accused of orchestrating construction deals to benefit his family and helping to manipulate district chief examinations in northeastern Thailand to help allies. He has denied all allegations, calling them politically motivated.

The Thai military, whose more than 1,000 active generals outnumber those in the U.S. military which is at least three times its size, is also a perennial source of cost overruns and corruption allegations.

The army budget has doubled since a 2006 military coup removed a government led by former premier Thaksin Shinawatra, who was accused of corruption and later convicted in a Thai court of breaking conflict of interest laws while in office.

Recent army procurement deals have raised questions of whether military corruption has worsened since the coup.

These include a 350 million baht ($11.4 million) purchase of a leaky surveillance blimp last year and more than 700 UK-made GT200 bomb detectors that turned out to be an embarrassing scam -- they are lumps of plastic with no working mechanical parts.

The military said in July it would keep the airship if its U.S. manufacturer paid for repairs. It initially insisted the bomb detectors, which cost 900,000 baht ($29,360) each, worked fine until weeks of public outcry brought an admission they had flaws. But they said the purchase was above board.

"Cases like these are hard to pin down because there is no serious investigation into who was accountable. It is usually taken as an honest mistake and the blame is on manufacturers. The procurement side gets off lightly," said Nuannoi Trirat, an economist at Chulalongkorn University who studies governance.

INDIRECT BRIBES

A 2010 survey by Hong Kong-based Political and Economic Risk Consultancy Ltd showed Thailand was perceived as the fifth-most corrupt of 16 Asia-Pacific economies.

"Prescribed comment periods for new legislation and regulations are sometimes not honored," said The Economist Intelligent Unit, blaming transparency problems on a "complex hierarchical system of laws, decrees and regulations."

The World Bank's Governance Indicators suggest corruption worsened between 2005 to 2008, with the indicator falling from 54.4 out of 100 to 43.5. It improved in 2009 to 51.

Foreign investors say they largely factor corruption into their investments but that it remains a source of risk.

One executive at a foreign luxury property developer said companies usually budget for direct and indirect bribes, sometimes to circumvent loosely worded regulations.

"As long as it doesn't become unpredictable, it's just a cost of doing business" said the executive, who declined to be identified because of the sensitivity of discussing bribes.

While there is no exact figure that measures how much corruption undermines Thailand's competitiveness, economists said worsening perception certainly hurts confidence.

"Many investors are used to this and it's not their biggest concern (compared to political instability). But there appear to be more complaints in recent years especially in the construction and procurement businesses and this certainly eats into growth," said Poramet Tongbua, an economist at Tisco Securities.

"It is something businesses keep an close watch on and would seriously consider if it gets worse."

Months into Abhisit's $42-billion three-year government stimulus programme, two government ministers resigned in scandals linked to abuse of the funds. Allegations ranged from irregularities in the procument of hospital equipment and school supplies to rigged bidding process on construction projects.

"Opportunities for graft and mismanagement remain high," said Danny Richards, senior Asia editor of the Economist Intelligence Unit. "While trying to push through spending programmes as quickly as possible, there does not appear to be any great priority placed on ensuring quality control."

Complaints lodged against low-level administrators are also on the rise, according to the National Counter Corruption Commission's Pakdi Pothisiri. Nearly 3,000 cases were filed last year against police officers and more than 2,000 were against local administrative authorities, he said.

reuters.com

Originally Posted by Mid

The World Bank's Governance Indicators suggest corruption worsened between 2005 to 2008

Makes trying to punish Thaksin for his alleged corruption all the more hypocritical.

I'm not much of a fan of Sondhi at all, but at least he had the balls, honesty and temerity to come out and admit that corruption in Thailand has only got worse since the military coup'. And gotten worse still under the Dem's.

It could be worse!

Corruption by country. Definition, graph and map.

Corruption is like incurable cancer, not much you can do once it sets in

The US is totally corrupt and the budgets of all 50 states are all running deficits due to corrupt govt morons and the crony union scum

Originally Posted by Lorenzo

Corruption is like incurable cancer, not much you can do once it sets in

It is difficult, but not incurable, just look at Singapore. Improvements were made in other places too, most countries in Eastern Europe are *much* less corrupt now than 20 years ago.

Originally Posted by Lorenzo

The US is totally corrupt and the budgets of all 50 states are all running deficits due to corrupt govt morons and the crony union scum

Corruption is not the same as inefficient governance. U.S. has well-defined, efficiently enforced rules which apply to everyone equally. Unfortunately, laws are often written by interest groups, and that legislators are dependent on them for campaign financing. Tons of money are wasted, completely legally. That is inefficient government. However, break the laws, and you go to jail in the U.S.

In countries with real corruption (Thailand being a notable example), it occurs at all levels. Even the lowliest cop or government clerk in Thailand often demand bribes. Those bribes often go higher up the chain in an organized manner. Those with relatively modest amount of money and connections can get away with blatant law-breaking, even murder.

Sure, U.S. has governance quality problems, but those are different kind and scale than corruption in Thailand. You can call it corruption if you're fond of the word, but that's muddying waters, and you'd need to find another word to describe the pervasive disregard for law in many places.

Originally Posted by crocodilexp

Improvements were made in other places too, most countries in Eastern Europe are *much* less corrupt now than 20 years ago.

Places that had citizens who weren't happy with it.

Even the lowliest cop or government clerk in Thailand often demand bribes. Those bribes often go higher up the chain in an organized manner.
Those with relatively modest amount of money and connections can get away with blatant law-breaking, even murder.


You can call it corruption if you're fond of the word, but that's muddying waters, and you'd need to find another word to describe the pervasive disregard for law in many places.

T H A I

Originally Posted by CaptainNemo

Originally Posted by Lorenzo

Corruption is like incurable cancer, not much you can do once it sets in

Transparency usually works quite well, but I suppose it requires rule of law so you can have an effective free press and well paid, well trained and educated independent police to protect the freedom of expression and investigation.
I mean think about countries that don't have much corruption... they usually have a lot of well-enforced regulation of everything.

In Thai the colour (or not colour) black is the media for transparency.

Originally Posted by crocodilexp

U.S. has well-defined, efficiently enforced rules which apply to everyone equally. Unfortunately, laws are often written by interest groups,

actually not, police for one do not follow everyday rules

any rule made that specifically helps one over the other is corruption not inefficiency

Originally Posted by crocodilexp

Corruption is not the same as inefficient governance. U.S. has well-defined, efficiently enforced rules which apply to everyone equally. Unfortunately, laws are often written by interest groups, and that legislators are dependent on them for campaign financing. Tons of money are wasted, completely legally. That is inefficient government. However, break the laws, and you go to jail in the U.S.

Exactly, the USA have taken corruption to the next step, making it legal by law.

Originally Posted by wefearourdespot

the USA have taken corruption to the next step, making it legal by law.

Which laws, exactly? Unlike Thailand, corruption is frowned upon in the US and prosecuted when detected. Do you really think that we could achieve such a high level of day to day functionality (and maintain a large middle class) if corruption were as endemic as in Thailand?

Originally Posted by Agent_Smith

Originally Posted by wefearourdespot

the USA have taken corruption to the next step, making it legal by law.

Which laws, exactly?

For example those regulating civil servants salaries. They average 120,000 $ a year now.
Now tell me, what's the difference between a Thai policeman whose salary is 8,000 baht a month and rounds it up pocketing 200 baht instead of giving traffic tickets and a USA policeman giving huge fines that pay for his huge salary ?
Apart the amounts involved , the difference is the corrupted Thai policeman can be caught , while the USA one cannot. As i said, corruption legal by law.

Originally Posted by Agent_Smith

Originally Posted by wefearourdespot

the USA have taken corruption to the next step, making it legal by law.

Which laws, exactly? Unlike Thailand, corruption is frowned upon in the US and prosecuted when detected. Do you really think that we could achieve such a high level of day to day functionality (and maintain a large middle class) if corruption were as endemic as in Thailand?

Absolutely agree! When it's widely accepted to pay off the cop to look the other way there is no real law enforcement. Most often, the Thai cop will simply make something up so that he can get a few quick baht to "look the other way". Try offering 99% of the cops in the U.S. a few dollars to look the other way and you're cuffed and taken to jail very quickly.

Thailand is struggling against corruption?

Well, I suppose if rolling over and asking for your tummy ti be ticked represents a struggle, then OK.

Originally Posted by Agent_Smith

and maintain a large middle class

your middle class is maintained by those Chinese morons who keep on accepting your hygienic paper as legal currency.... and you are so silly to pass laws to put an end to it.

Originally Posted by Mid

Recent army procurement deals have raised questions of whether military corruption has worsened since the coup.

Shouldn't really be a surprise to anyone ( except maybe posters on Thai Visa ) since one of the main reasons of holding the coup was to facilitate the military recouping the ground they had lost under Thaksin.

Originally Posted by Bangyai

Originally Posted by Mid

Recent army procurement deals have raised questions of whether military corruption has worsened since the coup.

Shouldn't really be a surprise to anyone ( except maybe posters on Thai Visa ) since one of the main reasons of holding the coup was to facilitate the military recouping the ground they had lost under Thaksin.

Yeah, shock horror...

It's all about money here. But, the way that the 'higher' instituitions such as the judiciary and A.N.other are abused by the currecnt mob (every since Rama7 really) is just ideological... throw in the Chinese clan element, and you really have an awful situation of total corruption and abuse which is based on a patriarchal system of social divide...

Originally Posted by wefearourdespot

For example those regulating civil servants salaries. They average 120,000 $ a year now. Now tell me, what's the difference between a Thai policeman whose salary is 8,000 baht a month and rounds it up pocketing 200 baht instead of giving traffic tickets and a USA policeman giving huge fines that pay for his huge salary ? Apart the amounts involved , the difference is the corrupted Thai policeman can be caught , while the USA one cannot. As i said, corruption legal by law.

This post suggests that US cops get a massive salary, perhaps the 120k quoted. I thought this was pushing it somewhat, so did a couple of googles; the police do seem to get excellent salaries in the US, tis true:

US Capitol Police - Salary
We offer a competitive starting salary of $55,653.00 annually plus benefits. Upon successful completion of training, your salary is increased to $57,604.00. A Private First Class with 30 months of service receives an annual salary of $64,590.00.

N.J. Police Salaries Highest In U.S. | MyVeronaNJ
The Star-Ledger has crunched the data on New Jersey police salaries and has found that the average municipal cop here earns 80% more than the average resident, and 30% made at least $100,000 last year. The report, which you can read here, also found that the best salaries are paid in small towns with little crime.

I was ready to argue with Wefearourdespot, but it seems he was spot on; quite incredible... You'd want an excellent service from them with their 100k salaries... Not sure the US tax payer gets value for money.

Originally Posted by Mid

The reason lies in one of the fundamental weaknesses of his premiership -- he holds on to power only with the support of networks of politicians, generals and bureaucrats whose reputation for probity does not match his own, and who epitomize the patronage politics that has long bedeviled Thailand.

The exact reason why Thailand's getting worse and Abhishit and his croneys making pathetic speeches paying lip-service to Thailand's so called democracy isn't fooling anyone (or anyone with any intelligence).

They have hung onto power for grim death (literally in many ways) while the fat cats get fatter and to hell with the rest. While they either have to ignore the facts or present different facts that are making Thailand a laughing stock for the rest of the world.

It's not just the many cases of the police taking 200Bht for scrapping a speeding ticket or worse, it's corruption of the military and the military backed top government officials right down to the local Tessaban elected officials.

Amazing how many local road schemes haven't been completed on time or if they have been built, very quickly need to be repaired because of the substantial "savings" made during the construction and purchase of materials.

I don't suppose for one minute Abhishit's getting any kickbacks or his family are getting weathier by the day?

Originally Posted by The Bold Rodney

I don't suppose for one minute Abhishit's getting any kickbacks or his family are getting weathier by the day?

How dare you besmirch the good name of our trusted Prime Minister.

He and his family are so wealthy and well educated that they do not need to be corrupt. They can earn money honestly and I am sure that their millions were earned ethically and through good old fashioned hard work.

Even if it was someone-else's hard work.

Originally Posted by wefearourdespot

Now tell me, what's the difference between a Thai policeman whose salary is 8,000 baht a month and rounds it up pocketing 200 baht instead of giving traffic tickets and a USA policeman giving huge fines that pay for his huge salary ?

You really want to go there? OK, fine.

US police get paid the same regardless of how many fines they give (and they don't set the fine amount), which is irrelevant anyway since they are paid from collected taxes. There is no link for fines collected to officer's pay (unlike Thailand). The police do their job out of a sense of duty or perhaps just because they are paranoid control freaks, but certainly not to get rich.

Originally Posted by wefearourdespot

the difference is the corrupted Thai policeman can be caught , while the USA one cannot.

Of course a policeman here, in the US, caught accepting bribes is put in jail and loses his/her job. Does that happen in Thailand on a regular basis? Does Thailand even have an effective internal affairs bureau?


The fact that you are even attempting to compare these two countries' law enforcement organizations is laughable.

Originally Posted by wefearourdespot

As i said, corruption legal by law.

A redundant oxymoron, that's go to be a first. And still not proven.

Originally Posted by Bettyboo

so did a couple of googles; the police do seem to get excellent salaries in the US, tis true:

I use Google too. The median US salary is about $50K a year, a decent middle class salary for a very dangerous profession, hardly evidence of "legalized corruption".

Originally Posted by Agent_Smith

Quote: Originally Posted by Bettyboo so did a couple of googles; the police do seem to get excellent salaries in the US, tis true:

I use Google too. The median US salary is about $50K a year, a decent middle class salary for a very dangerous profession, hardly evidence of "legalized corruption".

It's a good salary. I should imagine that on a global salary the US police are right up there with the best paid. Not saying that shouldn't be so, and no it's not indicative of corruption (quite the opposite), but I was very surprised how well they do, salarywise.

^
50K is chump-change for the dangerous job they do...

It's the lifetime pension and health care that is drowning the towns and counties. They take the last 3 years salary to set the retirement payments. So they work double time for 3 years.

Then there are all the medical bills to obtain steroids legally that taxpayers subsidize. This is a huge scandal that broke recently. Haven't you noticed how bulked up the police are when they do the "Go Go Go " routine?