January 2006 : No Royal Endorsement for NCCC The list of the nine new nominees to the National Counter Corruption Commission [ NCCC] was returned to the upper house without royal endorsement. The Supreme Administration Court upheld a decision to reject an appeal on the National Broadcasting Commission. The emergency law in the three southern provinces is being extended for another three months. Chuwit Kamolvisit was stripped from MP status by the Constitution Court. The government plans to replace the civil servant-manipulated fiscal budget management with a more top-down approach, decided to delete two controversial articles from its bureaucratic administration amendment bill that have been criticized for giving absolute power to the prime minister, passed a resolution to register some of the stateless people who have been in the country for a long time and approved a broad draft regulation on megaproject investment. The Social Security Office has set aside a budget to solve problems of long waiting lists now the new dental scheme while owners of commercial building now can claim a tax deduction for money spend on providing facilities for the benefit of elderly and disabled people in regards to a new building construction. The e-auction scandal in the Bangkok Metropolitan Administration was confirmed irregularities by an investigation committee. More than 2,000 people nationwide have joined 11 consumer protection groups in petition the Supreme Administrative Court against Egat Plc’s listing and the public could monitor irregularities and corruption via an internet website. Lastly, the prime minister now washed his hands of business after his family totally gained 73.3 billion baht from the Shin sell-out. List of NCCC nominees returned The list of the nine new nominees to the National Counter Corruption Commission [ NCCC] was returned by the Office of His Majesty’s Principal Private Secretary without royal endorsement. The list was submitted last month by the Senate Speaker Suchon Chaleekrua regardless the Senate minority opposition on ground that the nominees had been picked up from a group of 17 shortlisted candidates, instead of 18 as required by the constitution. The number of the candidates was reduced to 17 after former commander-in-chief Gen Prawit Wongsuwan withdrew from the race, citing health reasons. Since the Senate session ended, the Senate speaker have call an extraordinary session to solve this problem. Court upholds decision to reject NBC appeal The Supreme Administration Court on January 5 upheld a lower’s court’s decision to reject an appeal by Gen. Thongchai Kuasakul and 6 others NBC candidates of the National Broadcasting Commission [NBC] on grounds that they were not stake holders in the process therefore they are eligible to file a petition. The Supreme Administrative Court still has another appealed by the Prime Minister’s Office and NBC selection panel on nullification of the NBC selection process. Emergency law extended three months The cabinet meeting on January 17 extended enforcement of the emergency law in the three southern provinces, Yala , Pattani and Narathiwat for another three months. The extension was recommended by the Emergency Situation Management Committee. The committee predicted the security situation would improve in the South even though violence has not been rooted out and insurgents are still capable of causing havoc. Under the state of emergency, 53 insurgent leaders have been arrested and substantial evidence seized with arrest and summons warrants issued since August 2005. During the same period, 163 supporters of the insurgency have been apprehended and 423 separatist sympathizers have reported to authorities. Chuwit stripped of MP status The Constitution Court, on January 26, voted 9 to 5 to revoke the MP status of Chuwit Kamolvisit on the ground that he had spent too short a time with Chart Thai party before contesting the general election. The petition was filed by 118 Thai Rak Thai party MPs alleging Mr.Chuwit failed meet the legal minimum requirement of 90 days membership of Chart Thai party therefore he was not qualified to run for an MP seat under the Chart Thai ticket in the first place. The majority of judges agreed with the petition while the minority thought everything including Mr. Chuwit’s “right” was transferred to Chart Thai. That right should entitle him to carry over his stint at First Thai Nation. However, the majority of judges deemed such a right as belonging to a party and not the individual. Mr. Chuwit on January 30 returned his last MP monthly salary of 90,930 baht [ after tax deduct] along with his notebook computer and ID card and said he would return all his position allowances that he had received during the past year within 30 days. Govt plans new budget approach The government plans to replace the civil servant-manipulated fiscal budget management with a more top-down approach that would allow ministers and permanent secretaries to play a bigger role in budget disbursement. It is speculated that the new approach would increase spending on the government’s main policies, such as poverty eradication and tackling of social ills. The new system would be started from October 2007 to comply with the 10th national Socio-economic plan focusing on socio-economic and human resource capital particularly on budget decentralization to local authorities. Absolute power articles deleted from draft bill The government on January 5 decided to delete two controversial articles from its bureaucratic administration amendment bill that have been criticized for giving absolute power to the prime minister. The two articles were Article 10, saying the cabinet can temporarily transfer ministerial power to the prime minister in case where an issue or problem needs the government to take action rapidly, and Article 11, saying the prime minister is allowed to monitor the government’s policies by telling state agencies to report on their work, stopping their work if it appears to go against the policies and laws, and ordering an investigation into their work. Help for stateless people The cabinet passed a resolution to register some of the stateless people and to accord appropriate legal status to those who have been in the country for a long time. The proposal was submitted by the Ministry of Interior to give identity papers to certify stateless people their place of origin and their current status. Provincial officials will be set up to oversee the matter. Govt opens door to bids from foreign firms The cabinet on January 24 approved a broad draft regulation on mega-project investment, removing limitations on foreign companies bidding for contract. The new regulations would apply to projects valued at more than one billion baht and smaller projects requiring high technology or improving basic infrastructure, quality of life or enhancing competitiveness. The restrictions are those on budget constraints or requiring barter trade would be lifted because the government wanted to attract the best technical expertise. Moreover, no median prices will be set and consideration will be on technical details of each proposal before calling tenders. A high-level committee in each ministry would screen proposals and forward them to a national screening committee, which would be headed by the prime minister and have public and private representatives. The national committee would rate each proposal and forward all information to the cabinet. Tenders would be called on the internet and screening would be done publicly, such as through live television and radio broadcasts, to ensure transparency. Total investment in mega-projects is worth about 1.804 trillion baht in five areas are Basic infrastructure, under the Transportation Ministry, giving priority to mass transit development. Natural resources management, under Natural Resources and the Environment, focusing on water resources management. Defense systems, under the Defense Ministry, to modernize the army’s weaponry. Information and communication technology, under the ICT Ministry, focusing on e-government projects. Projects under ministries such as science, health and culture in areas such as research and development, alternative energy technology and human resources management. The cabinet also approved revised e-auction rules intended to stamp out bidding collusion. The proposed terms of reference for projects will be posted on the internet at least three days before being officially announced to allow for public comment and avoid fixing of specifications by contractors. Free dental care The Social Security Office [ SSO] has set aside a budget of 60 million baht to prop up the previous dental care system to solve problems of long waiting lists now the new dental scheme, introduced on January 9, has become popular with members of the Social Security Fund [SSF]. The previous system enables SSF members to claim a maximum 200 baht per head per dental care bill up to twice a year at hospitals participating in the state dental service welfare scheme while the new dental scheme allows unlimited dental. The new system received an overwhelming response from SSF members , resulting in heavy workloads for dentists until SSO decided to allow SSF members to go for treatment at private clinics if contracted hospitals are unable to treat them within 14 days. However, dental bills reimbursement at private clinics are limited to a maximum of 200 baht twice a year, similar to previous scheme at contracted hospitals and members are eligible for services under either system. New building code aids disable, elderly A new building construction code took effect since September 2, 2005 allowed owners of commercial building to claim a tax deduction for money spend on providing facilities for the benefit of elderly and disabled people. Such facilities might include elevators or access ramps for wheelchairs, a toilet able to accommodate a wheelchair, or provision of instructions in Braille. Building that fall under the scope of the regulations include hospitals, health centers, schools, museums and public mass transport stations, as well as other areas accessible to the general public and measuring over 300 square meters. Office buildings, theatres, hotel, conference centers, sport stadiums and department stores with an area accessible to the public measuring over 2,000 sq.m. were also included. The regulation represents the country’s first concrete steps to improve social welfare in line with the Disabled People Rehabilitation Act [1992]. 2000 sign petition to Egat listing More than 2,000 people nationwide have joined 11 consumer protection groups in petition the Supreme Administrative Court against Egat Plc’s listing. The list of names of 2,038 people was presented to the court to be co-plaintiffs in the case against Egat Plc’s public offering plan. The court is expected to rule early this year on whether Egat is eligible to list on the stock market. Anti corruption website A website for anti-corruption was opened on the internet to allow the public to monitor any irregularities which may occur. The web belongs to the Office of the Auditor-General and linked to the information centers of various state and private agencies such as the Comptroller-General’s Department, the Budget Bureau, the Business Development Department, the Stock Exchange of Thailand and the National Counter Corruption Commission. At the center, the public can search for information on various contracts, particularly on hires and purchases, between government and private offices. BMA e-auction scandal BMA Governor Apirak Kosayothin suspended civil works projects after a probe committee investigating the e-auction scandal in the Bangkok Metropolitan Administration confirmed irregularities in mega-projects. Previously on late December contractors submitted allegations to BMA Governor and also to the Department of Special Investigation [ DSI] over bidding collusion that the bidding terms were written in favor of some construction companies, making it impossible for others to join the bidding. The 16 projects tendered between December 21-22 valued 20,396 million baht. Governor Apirak Kosayodhin put on hold several city projects and set up an investigation panel and DSI, upon investigation, alleged Deputy Governor Samart Ratchapolsit who was responsible for the projects. PM washed his hands of business The Shinawatra and Damapong families, in a series of transaction, on January 23 completed the sale of 1.48 billion Shin shares at 49.25 baht per share to Singapore’s Temasek Holdings making the new shareholder a 49.61% majority. The sale raised public concerns over the deal’s treat to national security, economic development and media independence since Shin Corp is the holding company of various businesses including radio frequencies and satellite broadcasting, which are national assets. Academics and political observers fear it could jeopardize political stability and therefore national security. Moreover, Shin also hold Advanced Info Service [AIS], the country’s biggest telecom operator. Public criticism are not only on national security issues but also on the tax liability exemption the Shinawatra and Damapong families got as the stock market regulations waived capital gains tax for trade made through the Stock Exchange of Thailand. Earlier in 2001 Prime Minister Thaksin Shinawatra and his wife Khunying Pojamarn transfered shares to their children and Khunying’s brother Bannapoj Damapong regarding the constitution requires the prime minister to limit ownership in private corporate at 5 % in order to prevent conflict of interest. The tax exemption is also applicable to another Shin-Temesek sales when Mr. Thaksin’s son Panthongthae and daughter Pinthongtha sold total 329 million shares at 49.25 baht per share to Temasek on January 23. Those shares were transferred to both of them from Ample Rich Investments Co at a par value of 1 baht on January 20. Ample Rich is a company registered by Mr. Thaksin in a tax haven British Virgin Islands in 1999 and held 7.8 % of Shin Corp. The prime minister’s families totally gained 73.3 billion baht from the Shin sell-out, without having to pay taxes, washed his hands of business and now devote his time to serving the country.