Thailand : Milk scandal grows into corruption probe

[Mid]

Milk scandal grows into corruption probe
By: King-Oua Laohong, Bamrung Amnatcharoenrit and Sirikul Bunnag
21/02/2009

An anti-graft agency is gearing up for a nationwide investigation into school milk supplies after its probe into the scandal in Chumphon uncovered possible price collusion in the scheme.

The secretary-general of the Office of the Public Sector Anti-Corruption Commission (PACC), Tharit Pengdit, said the inquiry into the selection of milk suppliers in Chumphon has suggested irregularities in the bidding process.

Of 18 eligible suppliers, only two tendered bids. One of them quoted an unusually high price while the other offered the median price and won the contract to supply the milk.

Moreover, the two suppliers are apparently owned by the same individuals, said Mr Tharit.

"Price collusion is suspected in this case. So the PACC is prepared to launch an investigation into the bidding process for the school milk scheme across the country. We will choose [schools for the probe] at random. The findings should give us the big picture," he said.

The school milk scandal emerged when the director of Pak Lek school in Chumphon's Phato district complained that milk distributed to his students under the scheme was below standard.

His suspicions were confirmed by the Food and Drug Administration (FDA), which ran lab tests on the milk samples and found the fat level was only 2.6 per cent, below the FDA standard of 3.2 per cent.

These findings have triggered speculation about corruption in the school milk project which is run by local administrative organisations.

The local bodies are required to buy pasteurised milk from eligible suppliers in zones selected by the National Dairy Committee and the Interior Ministry's Provincial Administration Department.

Mr Tharit said a requirement for the local organisations to buy milk only from within their zones is deemed to have opened up channels for price collusion among the suppliers.

Deputy Interior Minister Boonjong Wongtrairat said yesterday he welcomed changes, if any, to the bidding rules to spur competition among milk suppliers.

He urged the local administrative bodies to submit a proposal to the National Dairy Committee.

He said the ministry would monitor the scheme closely and take action against state officials found involved in irregularities.

Meanwhile, the Dairy Farming Promotion Organisation of Thailand (DPO), which produces the Thai-Danish milk brand, yesterday called on the government to seek ways to relieve its excess inventory of UHT milk worth 200 million baht for the school milk scheme.

"If we can't solve this problem, we may face losses this year," said Sunun Keeratiwattanapisarn, a director of the DPO board.

The DPO, a government-controlled organisation, acts as a buyer of excess supplies of raw milk from farmers as part of a relief plan. But it can help buy only 40 per cent of the oversupply, which is expected at 280 tonnes a day. Some statistics show the oversupply of raw milk can reach 400 tonnes a day.

Amnaj Theeravanich, the board chairman, said the oversupply is exacerbated by imports of milk powder whose price is cheaper than raw milk. Manufacturers prefer milk powder for commercial production. The problem also stemmed from cold weather in the past months which made cows produce more milk.

He said the DPO also has to shoulder the financial burden from the purchase of excess supplies for the school milk programme. It needs to borrow 185 million baht from the Farmers Aid Fund for the milk purchases.

"It is hard for us to run our operations these days. We act as a government agency to buy excess milk supplies from the farmers but at the same time we have to strengthen our brand and marketing strategy," Mr Amnaj said.

In a related development, Chantana Ungchusak, manager of a campaign to reduce sugar intake among children, yesterday urged the government not to change from unsweetened milk to flavoured milk.

Her call came amid suggestions that schools buy flavoured milk for children who had turned away from fresh milk due to the substandard product scandal.

"The problem is not that the children do not enjoy the milk. It is with the manufacturers who produce substandard milk. That's why the children do not drink it," she said.

bangkokpost.com

Of 18 eligible suppliers, only two tendered bids. One of them quoted an unusually high price while the other offered the median price and won the contract to supply the milk.

Moreover, the two suppliers are apparently owned by the same individuals, said Mr Tharit.

it never ends

.

[TSR2]

Its A Misunderstanding

[blackgang]

If a Thai was in on it then it will be forgotten as soon as some money changes hands, must be a hard headed asshole or it would have never went this far, pay up and get on with life.

I think this country beats Mexico for graft and corruption.
And is fast catching up in murders of tourists and Ex-pats.

[Ping]

Either the corruption is getting worse in Thailand or we are just hearing more about it these days.

[kmart]

Either the corruption is getting worse in Thailand or we are just hearing more about it these days.

As long as there are people still blowing the whistle on these greedy bastards we will hopefully continue to hear about it.

[EmperorTud]

I think this country beats Mexico for graft and corruption.

Well that's the usual excuse isn't it? Oh, Thailand isn't as corrupt as xxxx or xxxxxxx.

His suspicions were confirmed by the Food and Drug Administration (FDA), which ran lab tests on the milk samples and found the fat level was only 2.6 per cent, below the FDA standard of 3.2 per cent. These findings have triggered speculation about corruption in the school milk project which is run by local administrative organisations.

They will even short-change their schoolkids and rip off schools in order to line their own pockets.

Their greed is limitless.

[attaboy]

I wonder what the Chinese did with all that contaminated milk that was in the news awhile back? Anyone think they dumped it all out? I wonder if it went to SEA or Africa?

[watterinja]

The problem also stemmed from cold weather in the past months which made cows produce more milk.

Quaint... Is it true, though?

[blackgang]

The problem also stemmed from cold weather in the past months which made cows produce more milk.

I have had to milk a cow in summer and winter from 38* to 0* and below and I have never noticed a difference in the depth of milk in the bucket at any time of the year except there was none when she was dried up in prep for the calf to be born.

[Mid]

Milk factory fined B10,000
24/02/2009

FDA warns of closure if facilities don't improve

The Food and Drug Administration has fined a milk factory in Thung Tako district of Chumphon province 10,000 baht for producing substandard school milk.

The FDA also threatened to close the factory if it continued to ignore warnings on production quality.

FDA secretary-general Pipat Yingseri, Chumphon governor Karan Supakitwilekhakarn and Utumporn Kamphu na Ayutthaya, the Chumphon public health chief, inspected two milk factories in the southern province yesterday following reports of substandard milk supplies to local primary schools.

The delegation found substandard milk and production facilities at the factory of Namsrichol 96 Co in tambon Thung Takhrai of Thung Tako district.

After a tour led by Plaengsak Chimngern, the managing director, and Jiranan Boonyarit, the factory manager, the authorities warned the company to improve many aspects of its production.

These included securely sealing vats of pasteurised milk and thoroughly cleaning machinery after each batch of milk was produced.

Mr Pipat said the FDA fined the company 10,000 baht for having produced substandard milk.

Local FDA authorities earlier ordered the company to improve its machinery after detecting bacteria on Feb 2.

The company has been given until March 4 to comply. In 2006, it was suspended for 30 days following an order to improve its equipment.

If the factory again failed to heed the FDA's instructions, it would lose its licence and be closed, Mr Pipat said.

The delegation also visited the milk factory at the Chumphon College of Agriculture and Technology, and found the facility clean.

The FDA secretary-general said the college's factory could be promoted as a good example.

Tharit Pengdit, secretary-general of the Public Sector Anti-Corruption Commission, yesterday said there was clear evidence of price collusion among milk suppliers that serve schools in Chumphon.

He blamed the issue on the Interior Ministry and the Agriculture and Cooperatives Ministry, which zoned the milk supply areas and required local organisations to only buy milk from registered local producers.

Mr Tharit said officials would inspect school milk supplies in other regions this week. If price collusion among milk suppliers was rampant, the PACC would examine the criteria of the two ministries in registering local milk suppliers to see if they had caused it.

He believed the zoning of milk supplies should be lifted or improved if it proved to cause problems.

If politicians or senior government officials were responsible for the collusion, the issue would go to the National Anti-Corruption Commission, Mr Tharit said.

bangkokpost.com

[Whiteshiva]

The Food and Drug Administration has fined a milk factory in Thung Tako district of Chumphon province 10,000 baht for producing substandard school milk.

Ouch - that must really have hurt the bottom line.

[Mid]

Govt House businessman linked to milk scandal
By Bancha Khaengkhan
March 5, 2009

Suspected to have made Bt1billion from 'collusion'

A businessman is suspected of pocketing over Bt1 billion from the schoolmilk project, without paying any tax over the past two years, via a series of dubious joint ventures.

"The Revenue Department should look into his business," MP Suwaroj Palang said at a press conference yesterday.

He spoke after businessman Charoen Dejkerd, and a director of Nakhon Si Thammarat College of Agriculture and Technology, Wissawa Kongkaew, testified to the House committee on laws, justice and human rights.

Suwaroj is an adviser to the House panel.

House committee chairman Pracha Prasopdee said Charoen and Wissawa were summoned over the recent scandal about school milk.

The project, funded by billions of baht from state coffers each year, has been plagued by allegations about poor quality milk, bidding collusion and corruption. Charoen is a big milk supplier in the South.

An informed source alleged that Charoen was believed to be the man behind up to 18 firms supplying schools with milk. They are among just 63 eligible suppliers.

Charoen admitted yesterday he had collaborated with Rajamangala University of Technology Srivijaya, its Nakhon Si Thammarat campus and the Nakhon Si Thammarat College of Agriculture and Technology in winning the right to become eligible milk supฌpliers.

"Charoen has invested in all machines and raw materials. The highereducational institutes need not do anything, except to sign papers and to get Bt0.12 commission from every milk bag sent to schools," Suwaroj said.

Generally, a milk bag distributed via the school milk project costs the state over Bt6.

Suwaroj believed the nature of business between Wissawa and Charoen could be considered an act of bidding collusion.

In their younger days, Charoen was a student in Wissawa's class.

"Our committee will pass on the information to the National AntiCorruption Commission," Suwaroj said.

Pracha also suspected that a politician was involved in Charoen's "scheme".

nationmultimedia.com

[StrontiumDog]

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1038110



DSI Makes Arrests over School Milk Program Corruption

UPDATE : 3 December 2010

The Department of Special Investigation has arrested executives of companies connected to school milk program corruption in Khon Kaen province.

Acting on court orders, the Department of Special Investigation or DSI raided Khon Kaen Dairy Company in Muang district of Khon Kaen province and the its owners' houses.

Officials also conducted searches of homes belonging to the executives of Sarakham Kaset and Tungkula Dairy Foods companies.

According to an investigation carried out by the DSI, all three companies were part of a bidding collusion to corrupt a number of school milk programs in Khon Kaen province.

The owners of these companies have been arrested and questioned by the authorities.

The DSI expects the case will be submitted to the court by January of next year.

Investigators believes there are more suspects involved in the collusion, including some local officials and businesses.

The DSI expects to make more arrests over the course of the investigation.


More than 7,000 sub district administrations in the country have participated in the school milk programs, which cost taxpayers billions of baht per year.

Many of these programs, such as those in Chiang Mai, Chumphon, Prachuap Khiri Khan and Songkhla provinces are currently being investigated by the DSI.

The department is also planning to expand the investigation to other provinces.

[StrontiumDog]

http://www.nationmultimedia.com/2011...-30145922.html

Four charged with school milk scam

By The Nation
Published on January 8, 2011

Four staffers of three dairy companies based in the Northeast have been charged with violation of antibidrigging regulations over their alleged joint efforts to secure school milk contracts worth tens of millions of baht, the Department of Special Investigation said yesterday.

Two dairy companies had submitted bids on several occasions at rates higher than the median price so that Khon Kaen Dairies, which tendered for the median price, won the contract, the DSI said.

The DSI named the four suspects as Phornchai Bunyacheewitanont and Jaroen Rattanapanya, both of Khon Kaen Dairies; Pranee Saenkaew, an employee of Sarakham Kaset Co; and Ladda Mokha, an employee of Thung Kula Dairies Food Co.

[Mid]

School milk 'poisons' 500 students
August 6, 2011



About 500 students at four schools in Nakhon Pathom had to be taken to hospital yesterday due to food poisoning after consuming milk that was believed to be spoiled.

Delivery of milk to other schools has been suspended pending verification and further investigation, Buddha Mondhol district chief Parinya Phothisat said.The four schools affected are Wat Maklua, Ban Khlong Maha Sawas, Bunyasrisawas and Khlong Yong.

So far, none of the ill students are said to be in serious condition.

The Nakhon Pathom Dairy Cooperative produced the milk that allegedly poisoned the children.

nationmultimedia.com

[drawp]

another 10000 baht fine on the way?