July 2008: Samak IV Cabinet gets 8 newcomers Samak IV Cabinet gets 8 newcomers Six interim measures to fight economic crisis Thai-Cambodian agreement on Preah Vihear Temple Pojaman gets 3 years jail for tax evasion Red card for Yongyuth Arrest warrant for fugitive Wattana Three laws ruled constitutional Warning of more violence in the South Draft Budget in Parliamentary sub-committee Abolishing Surayut’s overlapping committees Leasing 6,000 buses postponed Purchase 14 helicopters approved Public health budget 2009 approved Debt relief for farmers Studying Underground train network extension Nam Ngum Irrigation Project approved Raw milk price rose to 18 Bt/kg New Parliament at Kiak Khai June inflation highest in decade Women outnumber men by a million Samak IV Cabinet gets 8 newcomers On 2nd August, His Majesty the King endorsed the new appointments in Samak IV Cabinet as follows: Police General Kowit Wattana, Deputy Prime Minister and Minister of Interior Mun Pattanothai, Deputy Prime Minister and Minister of Information Technology and Communications Minister (formerly only ICT Minister) Suchart Tadathamrongvej, Deputy Minister of Finance Pichai Nariptapan, Deputy Minister of Finance Chaiya Sasomsap, Minister of Commerce Pichet Tanchareon, Deputy Minister of Commerce Prasong Kosithanond, Deputy Minister of Interior Somsak Kiatsuranond, Minister of Culture Anusorn Wongwan, Minister of Social Development and Human Security (formerly Minister of Culture) Chaowarat Charnvirakul, Minister of Public Health (formerly Minister of Social Development and Human Security) Mingkwan Sangsuwan, Minister of Industry (formerly Deputy Prime Minister and Minister of Commerce) Former Ministers not reappointed are: Suwit Khunkitti, former Deputy Prime Minister and Minister of Industry Second Lieutenant Ranongrak Suwanchawee, former Deputy Minister of Finance Wiroon Thejapaiboon, former Deputy Minister of Commerce Police Captain Chalerm Yoobamrung, former Minister of Interior Sitthichai Kosurat, former Deputy Minister of Interior Six interim measures to fight economic crisis On 15th July, the Government implemented 6 interim measures aim to reduce financial burden caused by increased petroleum prices. They are: Reduction of excise duties on: Gasohol 91, 95, E10 and E20 at 3.30 baht per liter, making a new rate of 0.0165 baht per liter. Diesel at 2.30 baht per liter, making a new rate of 0.005 baht per liter. Biodiesel B5 at 2.19 baht per liter, making a new rate of 0.0048 baht per liter Maintaining the current LPG price for domestic consumption. Full subsidy for water supply for households consuming less than 50 cubic meters per month. A 50% subsidy for water supply for households consuming between 80 and 150 cubic meters per month. A provision of 800 normal (non-air-conditioned) buses for free travel within the Bangkok Metropolitan area and vicinities. Full subsidy for 3rd class train fare nation-wide. These temporary measures will be in place for 6 months, from 1st August 2008 to 31st January 2009, and the Government will compensate the providers of items 3-6 for their loss. Thai-Cambodian agreement on Preah Vihear Temple On 29th July, the Cabinet acknowledged an agreement made on 28th July at Siemreap, Cambodia, between Thailand, led by the new Minister of Foreign Affairs, Tej Bunnag, and Cambodia concerning the Preah Vihear Temple as follows: The two countries will avoid the possibility of armed confrontation and will try to resolve the dispute peacefully. The two countries will hold meetings as soon as possible to discuss outstanding matters of survey and demarcation of their common boundary. In the meantime, the governments will be recommended to undertake the following measures: 3.1 Clear land mines in the surveying area. 3.2 Establish an ad-hoc joint-committee to solve problems in the dispute area. 3.3 Redeploy both sides’ troops out off the Wat Keo Sikha Kiri Svara, the surrounding area, and the Temple of Preah Vihear. These interim measures will have no effect on the parties’ legal rights in the survey and demarcation of the common boundary being undertaken by the joint-committee. The two countries agree to defer other unresolved matters to the next Thai-Cambodian foreign ministerial conference. Pojaman gets 3 years jail for tax evasion On 31st July, the Court of Justice at first instance sentenced Khunying Pojaman Shinawatra, wife of the former Prime Minister Thaksin Shinawatra, and her adopted brother, Bunapot Damapong, to 3 years imprisonment, and her secretary, Kanjanapa Honghern, to 2 years, for the 546 million baht tax avoidance over the Shin Corporation share transfer. The case was brought by the Attorney-General (AG) following a report from the Asset Examination Commission (AEC) that was appointed following the September 2006 coup. On investigation, the AEC found evidence of losses caused by the former Prime Minister and his subordinates. The AG took proceedings and this was the first case to be decided. After the judgment, the three offenders were released on bails of 5 million baht. A copy of the full judgment will be sent to the Finance Ministry where five high-rankings officers, including the former deputy director of the Revenue Department, were found guilty of corruption and malfeasance. They had allowed Bunapot to avoid paying income tax on shares received from Duangta Wongpakdi, Khunying Pojaman’s nominee. Red card for Yongyuth The Supreme Court's Criminal Division for Holders of Political Positions ordered Yongyuth Tiyapairat, Chiangrai Party-List MP and Deputy Leader of Palang Prachachon Party (PPP), stripped of his electoral rights for 5 years and a new by-election to be held in Constituency 3 where his sister, La-Ong, won the seat in the General Election. The Election Commission (EC) ruled that the two candidates had given money to village elders in Mae Chan sub-district, and it brought proceedings. Yongyuth’s parliamentary seat will be taken by his second runner-up, but La-Ong will be able to re-run in the by-election. The next step is for the EC to consider whether PPP itself is guilty according to Section 29 of the 2007 Constitution. Affirmatively, the decision will be submitted to the Attorney-General, who may bring the case to the Constitutional Court. If the Court ruled that the party is guilty, PPP would be dissolved in the same way as Thai Rak Thai was dissolved. Arrest warrant for fugitive Wattana On 9th July, The Supreme Court's Criminal Division for Holders of Political Positions issued an arrest warrant for Wattana Asavahem, former Interior Minister and Leader of the Pae Pandin Party for absconding bail, which became forfeited. The next hearing was scheduled for 18th August. Wattana was due to receive the verdict on the charge of conspiracy to issue land title deeds over 1,900 rai of public land. The land was then sold to a state-run waste water treatment project at Klong Dan. During his trial in May 2008, Wattana pleaded innocent and challenged the Court to execute him if he was really guilty. Three laws ruled constitutional The Constitutional Court, on 22nd July, ruled that three pieces of legislation: Parliamentary Sate Officers Regulations Act of B.E. 2518, the King Prachadhipok Institute Act of B.E. 2541 and the Political Development Council Act of B.E 2550, are constitutional according to the Constitution of B.E. 2550. Warning of more violence in the South The 9th Provincial Police Headquarter, in charge of the four Southern Provinces, sent notices to its sub-headquarters warning them to be cautious since violence was expected in the area and in the bordering districts of Songkhla, namely: Jana, Thepa, Sabayoi and Na Thawee. Intelligence reports indicated that BRN Coordinate was planning to sabotage urban and economic areas between 25th and 28th July. The warning came in spite of video broadcasted nationwide showing representatives of three violent Southern groups, the Southern Underground Group announcing a cease-fire in the area following a settlement reached by Ruam Jai Thai Chart Pattana Party leader, General Chetha Tanajaro. Critics commented that those who appeared on the video were not the real leaders, as shown by continuing violence within the declared 30 day period of the cease-fire. Luqman B. Lima, Deputy Chairman of the PULO group said that the cease-fire announcement was a fake and confirmed that his group would continue fighting to liberate the four Southern Provinces of Thailand. Draft Budget in Parliamentary sub-committee The Parliamentary Sub-committee announced on 1st July that it was considering the 2009 Draft Budget which is constitutionally required to be completed within 105 days, i.e. 20th August. Consequently, on 3rd and 4th September, the Budget Bill will be presented to Parliament, which will consider it according to function groups: economic, national security, social, Constitutional agencies and the provinces. Budgets of State Enterprises and Intra-Governmental Services Funds will be considered within their respective ministries’ budgets. Abolishing Surayut’s overlapping committees On 22nd July, the Cabinet agreed to abolish 5 overlapping committees, appointed by the Surayut Administration, they are: The Committee on developing National Well-being Strategy The Committee on developing National Logistics and Services The Committee on promoting Business Improvement The Committee on developing Economic Drives The Committee on establishing the Yom River Study Guidelines However, the following 3 Surayut’s committees are retained: The Committee on developing Organic Agriculture The Committee on developing national policies to have regard to Sufficiency Economy Philosophy The Committee on developing Relationships between Thailand and Neighboring Countries. Leasing 6,000 buses postponed On 22nd July, the Cabinet sent the proposal to lease 6,000 buses to a committee, chaired by Maj. Gen. Sanan Kajornprasart, to find solutions. In the meantime, it approved, in principle, the Transport Ministry’s proposal to improve the management of Bangkok Mass Transit Authority (BMTA) as follows: BMTA is to lease 6,000 natural gas buses, valued at 111,690 million baht, within the next 10 years. BMTA is to have 6,200 million baht for staff early retirement scheme. BMTA is to receive an interest free government loan of 3,500 million baht repayable at 500 million baht per annum. BMTA is to improve its network to cover all routes. BMTA is to sell 3,535 used vehicles. BMTA is to recruit new staff. There is to be a 2,000 million baht debt restructuring scheme for BMTA Savings Cooperative and its members. The Budget Bureau is to allocate 35,076 million baht to BMTA of which 9,125 million baht is for current and 25,951 million baht for future interest payments. Purchase 14 helicopters approved On 22nd July, the Cabinet approved the purchase of 14 fire-fighting and surveillance helicopters valued 1,500 million baht in fiscal years 2009 to 2011, as proposed by the Ministry of Natural Resource and Environment. Public health budget 2009 approved The Cabinet, on 15th July, approved the Ministry of Public Health’s budget for 2009 worth 114,847 million baht, including: A flat rate health payment (to hospitals) of 2,317 baht per person, totaled 108,983 million baht. An allocation of 2,983 million baht for 125,000 HIV affected patients. An allocation of 1,530 million baht for renal failure patients. An allocation of 1,350 million baht for the management of the Office of National Public Health. Debt relief for farmers The Cabinet on 15th July approved debt-relief measures for farmers affected of the 2008 flood, they are: For farmers who died owing debts to the agriculture institutions, there will be full debt forgiveness. The State will repay these debts instead. For farmers severely affected by the flooding, financial institutions are to extend repayment loan periods for 3 years, extend interest free loan periods for 3 years, and the State will compensate the institutions for the years between 2007 and 2009. Studying Underground train network extension On 15th July, the Cabinet approved an allocation of 223 million baht, proposed by the Office of Transport and Traffic Policy and Planning, to hire consultancy firms for the study of: A revision of the Bangkok Metropolitan Mass Transit System Master Plan costing 29,393,000 baht, A detailed design for an extension of the Skytrain dark green Sapan Mai-Lum Lul Ka- Klong See line, costing 128,090,000 baht, and A detailed design for an extension of the Skytrain light green Samutprakarn (Bang Ping)-Bang Phu line, costing 65,826,000 baht. Nam Ngum Irrigation Project approved On 15th July, the Cabinet approved, in principle, the Ministry of Natural Resource and Environment’s proposal to construct an irrigation system at Nam Ngum-Huay Luang-Lum Pao, valued at 76,760 million baht. Project details are to be submitted later for approval. The project is scheduled for years 2009 to 2013. At the same time, Deputy Prime Minister, Sahat Banditkul, has been appointed to chair a committee to prioritize other irrigation projects. Raw milk price rose to 18 Bt/kg The Cabinet, on 29th July, approved an increase to the factory price of raw (unpasteurized) milk to 18 baht per kilogram. It is expected that this will increase the price of school milk, which is state-subsidized, by 1-2 baht per container. Starting from fiscal year 2009, State subsidy for school lunch for kindergarten and primary school pupils is also to increase from 10 to 13 baht per person per day. There are currently 4,710,310 pupils nationwide who receive free school meals for 200 day/year. New Parliament at Kiak Khai The Cabinet, on 29th July, approved an additional 2,727 million baht to compensate the military for the cost of relocation from its 119 rai location in the Kiak Khai area. This makes total compensation at 4,027 million baht. The vacated land, adjacent to the Chao Phaya River, will be used to build the new Parliament House whose foundation stone is scheduled to be laid on 5th December 2008. June inflation highest in decade The Deputy Permanent-Secretary of the Ministry of Commerce, Pairoa Sudsawarng, disclosed that inflation rate for June soared to 8.9% taking it to a new high for 10 years. This was due to the 44.7% rise in fuel prices. Women outnumber men by a million On 1st July, the Institute of Demographic and Social Research revealed that there is a current imbalance of genders. There are 870,000 more female than male and this is expected to increase to 1,167,000 and 1,532,000 in years 2015 and 2025 respectively. The female predominance is due to higher mortality rates of male in all age brackets particularly those between the ages 20-24 years. HIV is the first cause of male death, followed by accidents and violence. Gender imbalance will affect mating; there will be more single women and more late marriages. Moreover, the number of single-child family is likely to increase, meaning that birth rate will be at only 1.5% which is lower than the required replacement rate of 2.0%. These factors will have a significant impact on future Thai populations.