September 2011 : Mega flooding in 28 provinces Mega flooding in 28 provinces Cabinet approved Bt.15 trillion national development plan Implementing 6 populist policies Bt.7.2 billion to help rice farmers Yingluck Administration achievement after 1 month Phue Thai re-starts legal process to pardon Thaksin “Nitirat” proposes to nullify acts following 19 Sept. coup AG not appeal Pojaman's acquittal Government approved Truth Commission recommendations Rice Pledging Scheme start 7th Oct. Tax refund for first car buyers Tax reduction for first home buyers Oil Fund amended National reserve dropped Economic growth 2001 reduced Yingluck halted Sovereign Wealth Fund Plan Farmers' credit cards Toxic waste exchange Public assembly law neccessary Investigating BMA dummy CCCTVs Thai children ready to cheat Mega flooding in 28 provinces Following unusually heavy monsoons and tropical storms that swept the country in August and September, excess water filled dams and reservoirs in the northern and northeastern regions. Most of these were at almost 100% capacity. Water had to be released into the waterways and agricultural basins flooding built-up areas along rivers. 28 provinces were flooded. In some areas, water levels were as high as 4 meters. Railway and roads were cut and hundreds of villages isolated in a sea of water. On 20th September, His Majesty granted an audience to the Prime Minister and advised her on flood management. All responsible agencies should cooperate and integrate their efforts in solving flooding problems. He emphasized a concentration on the timing the opening of water gates, which can reduce flooding. The Prime Minister visited flooded areas and asked Cabinet Members to spend overnights in the provinces to get a better perspective. She announced a 2R 2P (must explain) flood-fighting model. Every province is to submit a flood prevention plan to the central government. A budget of Bt.40 billion is being allocated to cope with the problem. The government has an additional measure to give Bt. 2,222 per agricultural rai and Bt. 5,000 per household affected. By the end of September, an official report stated there were 237 dead, 3 missing and more than 400,000 sick people. Outflow from the Bhumipol, Sirikit and Kwae Noi dams at 100 million m3 per day became the biggest threat to Bangkok, though BMA pulled out all stops to prevent the capital from being flooding. However, water from the north was not the biggest problem, in mid-October the Chao Phraya river was expected to reach its highest level at the end of the rainy season. Cabinet approved Bt.15 trillion national development plan On 6th September, the Cabinet approved the National Social and Economic Development Board 2012-2015 national development plan with a total budget of Bt. 15,437,517 million. The Plan will create a deficit of Bt. 6,536,517 million as income of only Bt. 8,901,000 million is expected from state and national sources. So other sources such as domestic and foreign loans must be sought for full implementation of the plan. Implementing 6 populist policies On 26th September, the government announced achievements after one month in office. Five election promises have been implemented, they are: A reduction of petroleum prices, particularly benzene 95, benzene 91 and diesel. A rice pledging program. A refund of excise tax for first car buyers. A 10% personal income tax reduction for first home buyers. Bachelor degree graduates to get a Bt. 15,000 monthly salary. The Opposition Democrat Party appointed a team, chaired by Korn Chatikavanija to monitor these schemes. Bt.7.2 billion to help rice farmers On 27th September, the Cabinet approved a budget of Bt. 7,200 million to assist the agriculture sector affected by flooding. Flooded paddy fields will be provided with seeds in addition to the current aid of Bt. 2,222 per rai. Rice seeds will be supplied at cost but at a maximum of 10 rai, at 10 kg/rai. Moreover, due to the current transitional period between the price guarantee program and the rice-pledging scheme, farmers unable to pledge their rice on 7th October 2011 will be compensated by a sum of Bt. 1,437 per ton. Yingluck Administration achievements after 1 month On 26th September, spokesperson to the Prime Minister Office, Mrs. Thitima Chaisang disclosed that after one month in office, the Yingluck government made significant progress in 8 areas as stated to Parliament. They are: Regarding reconciliation, the government will host a celebration to celebrate His Majesty, the King’s 84th birthday on 5th December 2011. Lèse majesté offences were being proceeded with normally under the law. Suppression of drugs is proclaimed to become a national agenda. Resolve flooding by 2P2R model and increase financial aids to affected households. Bring peace and reconciliation to the southern provinces by holding joint meetings of all responsible agencies who are to cooperate with new plans. Revitalize international relationships particularly with neighboring countries through Prime Ministerial state visits focusing on bilateral and multilateral cooperation. Reduced fuel prices from 27th August will continue for a period of 6 months. Credit cards will be provided to taxi, motorcycle and public mini-van drivers for their purchase of gasoline. Increase salary of bachelor degree graduates to Bt. 15,000/month. Tax reduction for first home buyers and excise tax refund for first car buyers. Rice pledging program is to start on 7th October 2011. Phue Thai re-starts legal process to pardon Thaksin Justice Minister Pol.Gen.Pracha Promnok appointed a study team, chaired by Ramkamhaeng University rector Mr. Wuttisak Larpchareon, to look into the possibility of a petition asking for a royal pardon for Thaksin Shinawatra. Previously, on 7thSeptember, Phue Thai party list MP Apiwan Wiriyachai commented that he personally does not oppose the petition but thinks that it is unnecessary since Thaksin had done no wrong. He cited the Civil Court’s decision to void the purchase of the Ratchada land and return the purchase money to Thaksin’s wife. A tabloid “Mahaprachachon Weekly Magazine” published an article examining the issue of royal pardon. In 2009, a petition endorsed by 3.6 million people was submitted to the Royal Household Bureau through the Justice Ministry. Songkhla Democrat MP Tavorn Saenniam commented that royal pardons are normally granted to those already in prison. He cited the case in which former Interior Minister Purachai Piamsomboon rejected a petition for Surin Saengkum because he fled from justice. A pardon should be given to a person who is contrite. The Phue Thai government is re-starting the royal pardon process after a delay of 2 years during which the Democrat Government was unresponsive when the Royal Household Bureau asked for its opinion. In any event, the government stated that there is no need to push this matter after the Civil Court’s ruling. The Supreme Court’s Criminal Division for Holders of Political Positions sentenced Thaksin to 2-year jail on 21st October 2008 for violating the Anti-corruption Act of 1999. He facilitated his wife to buy a plot of state-owned land on Ratchadapisek Road at a discount price. He fled the country before the verdict was announced. The Civil Court later voided the purchase and ordered the state to return the money to her. In 2003 while Thaksin was Prime Minister, his wife bought 33 rai of land on Ratchadapisek Road from the state owned Financial Institution Development Fund (FIDF) for Bt. 772 million. After the Court nullified the purchase and returned the money to Pojaman, FIDF held a new auction on 17th August 2011 and the land was sold for Bt.1,815 million. The Supreme Court’s Criminal Division for Holders of Political Positions found Thaksin guilty in another case for concealing shares in Shin Corp Plc. He sold Shin Corp to Singapore government’s financial arm Temasek at a huge profit. The Court seized Bt. 46 billion from him. Since he fled the country, there are other cases pending in Court against Thaksin. These involve allegations of corruption as follow: A case of holding shares in companies that have government concessions during his premiership. A case of falsifying accounts of his asset. A case of acquiring personal benefit from the state-owned EXIM Bank loan to Myanmar. A case of changing the telecommunication concession fee into excise tax. “Nitirat” proposes to nullify acts following 19 Sept coup On 18th September, a group of 7 Thammasart University law lecturers headed by Worachet Pakeerat announced proposals for the 5th anniversary of the 2009 coup. They are: To void all outcome of the coup of 19th September 2009. To revise article 112 of the Criminal Code, the lèse majesté offence, To use a ministerial regulation, instead of an enactment for an amnesty law. To compensate those affected by the coup and grant bail to those detained for political offences. To void the 2007 Constitution and draft a new one. On 25th September Worachet further clarified Nitirat’s standpoint: It does not intend to amnesty wrongdoers but to submit to normal legal process. The Constitutional Court’s and the Supreme Court's Criminal Division for Holders of Political Positions decisions are to be nullified since they were made following the Council for Democratic Reform under the Constitutional Monarchy (coup) regulations. Not the whole of the 2007 Constitution is to be cancelled, only articles 36 and 37 of the Interim Charter of 2006 on amnesty for coup action are to be amended. AG not appeal Pojaman’s acquittal On 26th September, the Attorney-General resolved not to appeal against the Appeal Court’s decision to acquit Pojaman na Pombejra in a tax evasion case. In August the Appeal Court overturned the lower court’s verdict against Pojaman for evading Bt. 546 million tax on the transfer of 4.5 million shares in Shinawatra Computer and Communications Plc. In 2008, the Criminal Court decided the case against against Pojaman, her adopted brother Bannapot Damapong, and her secretary Kanjanapa Honghern for falsifying documents involved in the shares transaction and of fraud. The Appeal Court this year overturned that decision and dismissed the 3-year jail term for Pojaman, 2-year for Kanjanapa and Bannapot term was reduced to 2 years suspended for 1-year and Bt. 100,000 fine. The AG Office announced that they thought the Appeal Court ruling was sound and arrived at from thorough consideration of the evidence. Government approved Truth Commission recommendations On September 20th, the Cabinet approved Kanit na Nakorn’s Truth for Reconciliation Commission’s 7 recommendations. The commission was appointed after political violence and widespread protests gripped Thailand in 2010. The recommendations are: To give equal justice to all parties involved regardless to their status: state officers, protesters or the public. To prevent conflict amongst political parties, political interest groups and civil organizations. To clarify charges against those accused of crimes both before and after the 19 September coup and reconsider their charges. To compensate those affected by the violence as soon as possible To grant bail to those detained on charges for violence. To reconsider lèse majesté cases connected to the violence since these might be widely interpreted and affect national reconciliation efforts To encourage forums for political discussions which should be widely publicized through the media. Rice Pledging Scheme starts 7th Oct On 13th September, the Cabinet approved the Rice Pledging Scheme, which in principle allows farmers to pledge their 2011-2012 crop for 4 months. The Program will start on 7th October 2011 and a budget of Bt. 435,547 million allocated to responsible state agencies: the Agricultural and Cooperatives Bank, the Public Warehouse Organization, the Marketing Organization for Farmers, the Department of Agricultural Extension and the Department of Internal Trade. It is estimated that total production of paddy rice will reach 25 million tons annually. Prior to this, on 4th September, Thailand Development Research Institute (TDRI) warned the government that the Rice Pledging Scheme will cause domestic prices to jump by 50% resulting in a reduction of Thai share in the global rice market. While domestic consumers will pay higher prices, other rice exporting countries will benefit. TDRI’s warning coincided with those of the Dean of the Economic Faculty at Thammasart University, Dr. Pracha Khunthamdee. He said that the scheme goes against global market trend that will continue to fall for another 2 years, while global supply is rising in the next 5 years due to increasing production in India, Egypt and Pakistan. So government’s expectations of higher prices are unlikely because of other variable costs in the scheme. He recalled that in the 2005 price guarantee scheme lower quality rice from neighboring countries was smuggled in to join the guarantee. Voice of America also commented on the rice-pledging scheme. It noted that Bt. 15,000 – 20,000 per ton is higher than market prices. Cost burden will affect export prices and reduce Thai competitiveness. Finally, the government will have two options: subsidization rice exporters or G-to-G trade. Both methods will benefit foreign consumers and eventually wipe out private exporters. As flooding continues after the scheme was implemented, farmers who lost their crops and had nothing to pledge demanded the government resume the price guarantee scheme as they could be reimbursed for the difference between actual production cost and the selling price. Tax refund for first car buyers On 13th September, the Cabinet approved Finance Ministry’s proposal on the First Car Scheme to refund excise tax, at a maximum of Bt.100,000 between 16th September and 31st December 2011. The vehicle price must not exceed Bt. 1 million, buyers more than 21 years old, passenger car of not more than 1500 cc or pick-up or double cab truck permitted, and vehicles must be locally assembled. Payment can be either in cash or on credit. Tax refund will be given one year after purchase or starting from 1st October 2012. Exchange of ownership is prohibiting for 5 years, but if the vehicle is sold or payment terms not kept up, claims for the refund will be pursued. The first car scheme received much criticism in that it is against the trend on global policy to discourage the use of private cars. There were suggestions that the budget would be better spent on flood compensation. Tax reduction for first home buyers On 20th September, the Cabinet approved the First Home Buyer Scheme by allowing first homebuyers to deduct a maximum of 10% of the price or Bt. 500,000 from their income tax over 5 years. The price of the property must not exceed Bt. 5 million and transfer completed between 21st September 2011 and 31st December 2012. Subsequently, on 28th September, the Cabinet also approved a scheme to help low income home buyers by providing 3-year interest free housing loans for buyers whose house does not exceed Bt. 1 million. It is estimated that the government will have to reimburse the state owned Government Housing Bank with Bt. 300 million or of the interest on the loan. Oil Fund amended On 30th September, the National Energy Board chaired by Prime Minister Yingluck Shinawatra overhauled energy price structure as follows: Extending the price of LPG gas for domestic use at Bt.18.13/kg until 31st December 2011. The original was due to expire on 31st Sept. The price of LPG gas for transport will be maintained until 15th Jan 2012, when public vehicle drivers will be provided with energy credit cards. From then on, the price will be step-increased at Bt.0.75/kg/month for 12 months, or Bt.0.41 per liter/month until it reaches Bt.9/kg or Bt.4.92/liter. The price of NGV gas is to increase by Bt.0.50 per liter/month for 10 months until it reaches Bt.6 per liter. National reserve dropped On 30th September, the Bank of Thailand reported that as of 23rd September, national reserve has dropped by USD 3,500 million or Bt. 108,500 million, making a balance of USD 181.3 billion or Bt. 5.588 trillion. Economic growth 2011 reduced On 28th September, the Bureau of Macroeconomic Policy of the Fiscal Policy Office adjusted annual economic growth from an estimate of 4-5% down to 4% due to a slow down in private consumption resulting from flooding and high inflation. Yingluck halted Sovereign Wealth Fund Plan The Finance Minister, Tirachai Phuvanatnaranubala’s idea is to allocate treasury reserve to establish a “Sovereign Wealth Fund” to invest in the global market was widely criticized as being too risky. On 6th September, the Prime Minister said the plan was not urgent and not included in the government’s 6 urgent policies, so she will carefully study the plan and make an announcement later. Deputy PM and Commerce Minister Kittirat na Ranong also said that this matter is not urgent and if it is to be established, parliamentary enactment will be sought rather than using a decree and there are other funding sources besides reserves. Farmers’ credit cards The implementation agency for farmer credit cards, Bank for Agriculture and Cooperatives, resolved to outsource the whole service for a period of 3 years at a total budget of Bt. 1,008 million, of which Bt. 648 million will be needed for leasing the system and Bt. 360 million for issuing 300 million cards. It is expected that cards can be hand out on 1st November, 2011. Farmer cards can be used primarily to purchase farming materials from 3,000 cooperative outlets nationwide. Outlets will be increased to 5,000 in future years and there will be opportunities to expand services to meet customer needs in line with those at commercial banks. Toxic waste exchange On 8th September, Bangkok Metropolitan Authority launched a toxic waste exchange campaign to allow people to trade in their toxic waste for household medicine at 8 BMA hospitals between 15th September and 31st December. Public assembly law necessary The President of the Democracy without Violation Network, Chai Srivikrom, submitted a letter to PM Yingluck Shinawatra asking for the government to push ahead with the Public Assembly Bill. This Bill sets out codes of practice for parties involved in public assembly. He cited previous occasions in which traders in assembled areas were badly affected by the cancellation of their marketing promotion campaigns since there was no prior notice of assemblies. He said that while there is no law, the police should prevent third parties, non-assemblers and traders from being affected by protests. The Public Assembly Bill is one of more than 200 draft bills waiting for parliamentary approval before the House dissolution. Under the law, these draft bills will be dropped unless endorsed by the new government within 60 days of taking office. Investigating BMA dummy CCTVs According to a social media posting many CCTV cameras in Bangkok are dummies, so on 21st September, BMA governor M.R Sukhumpan Boripat appointed a fact-finding committee to investigate the matter particularly the contract between BMA and the independent contractor. He announced that BMA made two contracts for the procurement and installation of the CCTV system. The first in December 2007-08, for 2,046 cameras and 1,325 dummies at Bt. 300 million and then another 20,000 were installed as promised during his campaign. Among these, 10,000 were real cameras which cost Bt.34,000 per unit while a dummy costs between Bt. 2,500-2,700. The National Anti-corruption Commission has accepted the BMA dummy camera issue for consideration. Thai children ready to cheat A nationwide study done by to the Public Health Research Center on 10,000 children ages between 1-14 reveals that children between 1-5 years have problems adjusting to rules and discipline while those 6-9 years are unable to control their moods, suffer from lack of concentration and have no sense of mercy. The 10-14 lack analytical skills and confessed that they will cheat whenever possible.