October 2008 : Thaksin convicted to 2 year jail Thaksin gets 2 year-jail, wife acquitted Police-PAD clash resulted in 2 deaths and over 400 injured Thailand second highest political risks in Asia Cabinet pushed for Constitution amendment within 120 days Social security contribution reduced Paddy rice stock stabilized with 97 billion NESDB 4.9 trillion baht investment plan approved Apirak is Bangkok governor Flood damage helped with 127 million Emergency Decree in Southern Provinces extended again State Enterprise to get equal subsidy to civil service Minimum wage increase in 3 provinces Peace talk with Cambodia Thaksin gets 2 year-jail, wife acquitted On 21st October 2008, the Criminal Division for Holders of Political Positions in the Supreme Court convicted former Prime Minister Thaksin Shinawatra to a 2 year-jail term but acquitted his wife, Khunying Pojaman. Thaksin was found guilty of acting contrary to Articles 100 and 122 of the National Counter Corruption Act B.E.2542 in facilitating his wife to purchase a 33 rai plot of land in the Ratchadapisek Road area from the Bank of Thailand’s Financial Institutions Development Fund (FIDF) at a discount price five years ago. The case was brought by the Attorney General who received the case from the Asset Examination Commission (AEC), appointed by the Council for National Security (CNS) who staged the coup on 19th September 2006. The two Defendants’ case was: The AEC was an unconstitutional body since it was appointed by the coup maker CNS, who abrogated the 1997 Constitution. FIDF is not a state agency and its executive is not a state officer. Thaksin, then Prime Minister, had no authority to regulate or issue orders to FIDF. The purchase of land for 772 million baht brought no damage to FIDF and there was no conflict of interest. The land in issue should not be confiscated. The judgment was: Nine judges unanimously dismissed the AEC unconstitutional claim. The abrogation of the 1997 Constitution had no effect on anti-corruption laws. The latter is part of general law and is still in force, regardless of whether or not the 1997 Constitution exists. In addition, the anti-corruption law was later re-confirmed as valid. Nine judges unanimously decided that the FIDF was a state agency since it was set up by the Bank of Thailand Act under the supervision of the Finance Minister, who is authorized to disburse funds to support it. Six of the nine judges decided that Thaksin, as Head of the Government at the time, had authority over officials in all government agencies. Based on witness accounts, they decided that Thaksin used his authority to supervise the FIDF through the Finance Minister at the time. Five of the judges ruled that Thaksin acted as a state official and violated anti-corruption laws. As Prime Minister, he was empowered to run the country for the benefit of the State and the public. His wife was not a state official so her action was not contrary to anti-corruption laws. Nine judges rejected the request to confiscate the land. Thaksin has fled abroad after the conviction of his wife in a previous case. The Attorney General is responsible for bringing him to justice. The limitation period on this conviction is ten years. Police-PAD clash resulted in 2 deaths and over 400 injuries On 7th October 7 at 6.20 am, the police, in an attempt to disperse the People’s Alliance for Democracy (PAD) demonstrators who had gathered all night in front of Parliament House, fired tear gas into the crowd, causing many injuries including a man who lost a limb. The police said that they were obliged to clear the way for the Prime Minister, Somchai Wongsawat, his Cabinet and MPs to attend the government policy statement assembly. The entry was only temporarily cleared and was soon blocked again by demonstrators. After the assembly, Prime Minister Somchai and his daughter, Ms. Shinisha, Chiangmai MP, in order to escape waiting demonstrators had to climb over a fence to a nearby helicopter. The police, in another attempt to bring MPs out, clashed with demonstrators again, causing more injuries. The event led to further conflict in the surrounding area including a bomb blast in a 4-wheel Cherokee parked in front of the Chart Thai Party office nearby. A body, identified later as a former policeman connected to PAD, was found near the car. Later that evening, police fired more tear gas into the crowd in front of the Municipal Police HQ causing many more injuries one fatally. All those who were injured were taken to hospitals in the area. HM the Queen personally donated 300,000 baht for their immediate care. On 8th October, the emergency medical unit, Narenthorn Center, disclosed that there were 2 deaths: one man and one woman; 443 injuries with 8 losing organs. Twenty policemen were injured including 6 who were seriously injured. The police repeatedly stated that only tear gas were used and only as a disbanding tool. On 28th October, the Cabinet approved 56 million baht, through the Ministry of Social Development and Human Security, to assist those with injuries and families of those who died. After this incident, PAD remained in their occupation of Government House. Thailand has second highest political risks in Asia The Political and Economic Risk Consultancy (PERC) rated 16 Asian-Pacific countries with the highest political and social risks. Thailand came second, after India and followed by Malaysia. Measured factors were: instant change in politics, threat from social movements, and vulnerability to foreign public policy changes. Thailand had the second highest level of risks because of its domestic political unrest which is expected to continue into early 2009. Cabinet pushed for Constitutional amendment within 120 days On 21st October, the Cabinet approved the appointment of a Constitutional drafting committee to amend the Constitution within 120 days. The committee is to comprise of maximum 120 members: 76 elected from each of the 76 provinces 24 experts from law, political science and public administration sectors, and 20 representatives from professional bodies which are to be self-appointed Committee members are to be appointed within 90 days and the amendment completed within 120 days. The new draft must be approved by a majority of both Houses. If the draft fails, a public referendum would be held. The referendum requires the participation of at least 20% of the eligible voters for it to be valid. The amendment process is to continue regardless of any parliamentary dissolution. Deputy House Speaker, Nikom Wiratpanich, said that the amendment process is a response to all political sectors rather than just the government buying time. Social security contribution reduced On 29th October, the Labour Ministry disclosed a measure to tackle economic crisis by reducing payment into social security funds. Employer and employees will now pay 3.5% from the previous 5% and the State will now pay 2.5% from the previous 2.75%. The new rate, expected to pump 27 billion baht/month back into the overall economic system, will be effective from January 2009. Paddy rice stock stabilized with 97 billion The Cabinet, on 28th October, approved a project to provide the Agricultural Bank with a 97 billion baht loan to stabilize the price of the 2008/2009 paddy rice crop. The Finance Ministry will be responsible for finding sources of fund from state and private commercial banks. The Cabinet also approved government stabilizing price for maize and tapioca, with maize to be effective from 1st November 2008 to 28th February 2009 and tapioca from 1st November 2008 to 30th April 2009. NESDB 4.9 trillion baht investment plan approved The Cabinet on 28th October approved the National Economic and Social Development Board investment plan, totaling 4.9 trillion baht for fiscal 2009-2010. The sum will be divided into: 1.6 trillion baht mega-projects, 78.6 billion baht public health, 2 trillion baht water resource management, 8.7 trillion baht logistics, 3.6 trillion baht energy, 52 billion baht telecommunications and 5 billion baht Southern Seaboard development Apirak is Bangkok governor The Election Commission (EC) on 8th October endorsed election results for the Bangkok Metropolitan Authority, naming Apiral Kosayodhin as governor. Despite the endorsement, Apirak is charged with 4 electoral frauds: illegal posters, giving out of Wi Fi cards, oversized campaign posters, and campaigning activity televised on Election Day. The EC announced that the first can be summarized within 30 days while the other three are being investigated by the EC investigating sub-committee. If any of these accusations is valid, the EC will call for a new election and file a case to the Supreme Court. Flood damage helped with 127 million The Cabinet, on 21st October 21, allocated 127,168,700 baht from the Central Budget to 17 provinces affected by flood damages. Most of the sum will be used in 498 infrastructure and public alleviation projects. In addition, the Government, in anticipation of the coming winter, has set up a temporary aid center in every province to survey and list households likely to be affected. All responsible agencies will cooperate in providing aid and warning in case of fire which normally breaks out in dry winters. Emergency Decree in Southern Provinces extended again The Cabinet, on 14th October, extended the State of Emergency in Southern Provinces for another three months. The extension is the 13th since violence broke out in early 2005. State Enterprise to get equal subsidy to civil service The Cabinet, on 14th October, approved a financial subsidy for all State Enterprise workers to equal that of civil servants’. Each State Enterprise will use own funds. The subsidy is temporary and is not regarded as wages. It is also non-taxable and will cease at the same time as those for the civil service. The subsidy is retroactive from 1st May 2008. It allows an employee whose salary is below 17,000 baht/month to get a subsidy of 1,500 baht/month, if total income does not exceed 17,000 baht/month. Those who get less than 8,200 baht/month will get a subsidy to total 8,200 baht. Minimum wage increase in 3 provinces The Cabinet, on 28th October, approved minimum wage increase in 3 provinces: Chaiyaphum, Uttaradit and Sukhothai from 148 to 152, 149 to 152 and 151 to 153 per day respectively. Peace talk with Cambodia The Director-General of the Department of Treaties and Legal Affairs, Ministry of Foreign Affairs disclosed, on 30th October, that Parliament had approved the Thai-Cambodia Joint-Border Committee (JBC) dialogue framework, to be held between 10th-14th November, and that Thailand will avoid arm conflict and focus on peace. He is confident that the discovery of land mines in the dispute area will have no effect on boundary demarcation. Regarding the Pra Vihear Temple area, Thailand will recognize the Siam-French Convention, signed between King Rama V and France in 1907 and the Siam-Indochina maps.