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 December 2011 : His Majesty celebrated 84th birthday anniversary
His Majesty celebrated his 84th birthday The fifth of December was the auspicious occasion of His Majesty, King Bhumibol’s 84th birthday. He addressed the nation in a televised broadcast, attended by the royal family, Privy Council, Cabinet, members of the Parliament, foreign diplomats and bureaucrats. He asked all Thai people to cooperate in solving the flood problems and the government to develop a sustainable water management system. Thai economy in 2012 The Fiscal Policy Office disclosed that in 2011 state revenue rose 8.5 % from last year, making a total of Bt. 2.822 trillion baht or equivalent to 26.5% of GDP. However, expenditure also rose at 14.2% or Bt. 3,77 billion, to total Bt.3.03 trillion making a deficit of Bt. 2.07 billion which is Bt. 1.55 billion higher than last year. In view of the flooding problem and subsequent drop in domestic consumption, the Thai economy in the 4th quarter dropped to minus 5% of GDP making the 2011 average annual growth of only 1.1 %. It is anticipated that in 2012, the economy will improve due to the implementation of several economic revitalization plans. Apiwat Asamaporn, Deputy Director to the Office of Industrial Economics disclosed that Thai industrial production index dropped from 133.7 in October, to 97.0 in November, the lowest in 123 months. This was only 48.6% of last year’s index because production lines in vehicles and electronics are reduced to 40.1% of their total capacity due to flood problems. Manufacturing is expected to improve in December but the average index for 2011 is estimated at 171.9, which is 9-19 % less than last year. The Senior Manager of the Rojana Industrial Park Plc., Wittaya Luanglueyos, disclosed that Sanyo Semiconductor (Thailand) Ltd. has decided to terminate its operation in Thailand and lay off 2,000 workers as of 25th December. Sanyo was badly affected by the rise in daily minimum wage to 300 baht and the floods made them decided to shift their production lines to the Philippines. Few workers will remain until flood damage is repaired. Cabinet approved 4 flood plans On 27th December, the Cabinet in principle approved 4 flood related plans, they are:
These 4 plans will be put into force by emergency decrees. FIDF Bt. 1.14 trillion public debts Regarding the Strategic Committee for Reconstruction and Future Development’s (SCRF) proposal to transfer the burden of the Bt. 1.14 trillion debt from the Financial Institution Development Fund (FIDF) to the Bank of Thailand (BOT), it appears that the annual interest of Bt. 5 billion is currently being paid by the government and the reduced burden will give the government the chance to obtain more loans to invest in mega-infrastructure projects. The Bt. 1.14 trillion debts was a result of the 1997 financial crisis after Thailand decided to liberalize financial institutions in 1993. The policy was known as BIBF (Bangkok International Banking Facilities) and this was in the heyday when the Thai economy was stable and the Thai baht fixed at 25 against the US dollar. High domestic interest rates drew international investors into the country for short-term benefits. BIBF allowed Thai banks to borrow cheaply overseas and lend high to domestic customers. The property market fed by this gush of cash led the way to the bubble economy of speculative investments. When short-term international investors recalled their money, the bubble burst and the economy collapsed. Financial institutions faced non-performance loans (NPL) followed by a drastic reduction of domestic purchasing power and national income declined sharply. In an effort to maintain currency value and confidence in the Thai financial system, the Central Bank started to SWAP or to buy baht in advance using national reserves. Decreasing national reserves finally forced the Thai government to abandon fixed exchange rate and float the currency. The Thai baht dropped sharply overnight from 25 to 34 per US dollar on 2 July 1997. It plunged further to 54-56 before settling at 44 baht per US dollar. As 56 financial institutions collapsed, the government decided to guarantee all creditors’ accounts by raising money from issuing government bonds. Financial aid was sought through the International Monetary Fund (IMF) and the FIDF was set up to be responsible for that debt. Regarding the transfer of this burden, the Central Bank Governor, Prasarn Trairatvorakul, commented that FIDF is the government’s financial tool, not the BOT’s. Finance Minister, Tirachai Phuvanatnaranubala, also said that implementation of financial schemes must not disrupt financial discipline, but he further noted that public debts are technically guaranteed by the State regardless of the responsible agencies. Bt. 20 billion for flood relief The government spokesperson, Ms. Thitima Chaisaeng, announced on 12th December that the Cabinet has approved an emergency budget of Bt. 20,110 million for primary flood relief. They will be spent between December 2011 and January 2012 for:
These funds will be sent to the provinces within 3 days and another Bt. 27,000 million will be regularly allocated after parliamentary endorsement. Bt. 2.62 billion flood insurance claims The Secretary-General of the Office of Insurance Commission, Pravej Ongartsittigu, disclosed that as of 20th December, industrial and household sectors have made total claims of Bt. 262,177 million out of a total cover of Bt. 794,637 million, divided into Bt. 228,392 million for industrial and Bt. 33,785 million for household sectors. It is expected that insurance companies can pay up to 75% of their policies equivalent to Bt. 150,000 million within 6 months. Currently, a total of USD 1,000-1,200 million has been transferred into the country. Flood victims seek Administration Court justice The Stop Global Warming Association Thailand and 325 people affected by the floods filed suits in the Administration Court against the Prime Minister and 10 heads of state agencies including the governor of Bangkok Metropolitan Authority. They are accused of failing to provide proper flood management and proper flood relief operation. The petitioners asked for compensation at actual loss. The petition also asked the Court to order state agencies to provide flood prevention measures within 90 days of the Court’s ruling, these are to take public opinion and public participation into account. Lastly, a rehabilitation fund of not less than Bt. 2 billion is to be provided annually, with increases at 5% pa for inflation. On 23rd December, on behalf of 29 flood victims, 2 representatives from the Lawyers Council of Thailand also filed a complaint to the Administration Court against the Prime Minister and other 9 public agencies. They asked for compensation at actual loss in the range of 20,000 to 4,000,000 baht with 7.5% annual interest. Flood aftermath produced garbage for BMA After flood waters receded, many streets in Bangkok were piled high with wet garbage of household goods: furniture, appliances, wood, metal and plastic as well as chemical and toxic waste such as pesticide, batteries and spray paint. As it took some time before the local authority could remove these wastes, it was feared that toxic pollutants could contaminate the soil and underground water. Flood causes The Strategic Commission for Water Resources Management disclosed its study on causes of the flood and concluded that:
On 19th December, the Deputy Director-General of the Irrigation Department, Suthep Noipairoj, said that the La Nina influences could remain until early January 2012. Rains will come earlier than usual. Rainfall can already be expected in the summer season while all dams are still at their peak capacity. Therefore, the Department is planning for the rice growing and harvesting of 2012 to be completed ahead of the anticipated floods in order to avoid the crop loss of this year. The official report concluded that there was a total of 698 deaths and 3 missing from floods affecting 1,654,04 households or 4,406,600 people. Abhisit accused of distributing government flood-relief bags On 8th December, Justice Minister, Pracha Promnok, and 84 Phue Thai MPs submitted a petition to the Constitutional Court, through the House Speaker, Somsak Kiatsuranont, accusing the Opposition leader, Abhisit Vejjajiva, of breaching Article 266 (1) of the Constitution by forcing Pitsanulok Governor to give him 500 flood-relief bags to distribute to flood victims. Phue Thai stated that the bags belonged to the Energy Ministry, so should not have been distributed by Abhisit. Constitutional draft amendment submitted On 29th December, Lamphune Phue Thai MP, Sanguan Pongmanee, and a group of 51 members from the Chiangmai Red Shirts submitted a constitutional draft amendment to the deputy House Speaker. It concerns Article 291 for the establishment of a 101-member constitutional drafting panel: 77 to be elected from the 77 provinces and 24 appointed from experts in public law, political science and public administration and to include Buddhist monks. Phue Thai party list MP, Weng Tochirakarn, said that the Party would submit 3 drafts including the Red Shirts’ which would then be consolidated into a single version. He then anticipated that parliamentary procedure could be completed by March 2012 and the drafting panel named shortly thereafter. The draft Bill should be ready for public hearings and referendum after 8 months. If the new Constitution is approved by a public referendum, it can bypass parliamentary process and be submitted for royal endorsement right away. Acting Chairperson of the United Front for Democracy against Dictatorship (UDD), Tida Tavornseth, said that the Constitutional amendment campaign of collecting the 50,000 signatures will be completed in January 2012 and the UDD draft would be ready for submission in the same month. Meanwhile, Phue Thai Yasothorn MP, Peerapan Palusook, anticipated that the government draft would also be submitted in Jan-Feb and the new Constitution promulgated in 2014. He foresees parliamentary dissolution and a new general election to take place shortly afterwards. He said that in the new draft, it is possible to abolish the Senate since the House of Representatives can perform all legislative functions. Thaksin’s passport returned On 16th December, the Foreign Minister, Surapong Tovichakchaikul, announced that the ministry has re-issued a Thai passport to Thaksin Shinawatra upon his request submitted to the Thai embassy in Abu Dhabi, United Arabs Emirates. He stated that the return of the passport was not against section 7, article 21 (2) and section 8, article 13 (7) of Ministerial Regulations. Article 21 (2) states that the Ministry is entitled to refuse or refrain from issuing a passport if the applicant has criminal liability, on bail, under an arrest warrant, or as advised by the police or the court. Article 23 (7) states that a Thai passport can be cancelled or revoked if there is evidence that its holder is liable to damage the country or a foreign country while living abroad. On 12th April 2009, during the Abhisit Administration, former Foreign Minister, Kasit Piromya, cancelled Thaksin’s passport on the basis that he was sentenced, by the Supreme Court Criminal Division for Holders of Political Positions, to a 2 year-jail term according to the Anti Corruption Act of B.E.2542. Thaksin avoided imprisonment by fleeing the country on 11th August 2008 before the verdict was delivered. However, his sentence is effective for 15 years or until 12th August 2023. Politicians’ nicknames On 26th December, reflecting consensus opinion of their performances, Government House reporters gave nicknames to the government and politicians. The government’s name was “Thaksin’s Front” for its function in following Thaksin’s guidance. Prime Minister Yingluck Shinawatra was “Parrot Prime Minister” due to her good looks but inability to say anything without being strictly coached. In the same way, on 25th December, parliamentary reporters named Yingluck “Fallen Star” because of her constant absence from parliamentary sessions and, unlike previous prime ministers, making no effort to reconcile government and opposition party members. Yingluck was criticized for assigning Cabinet members to answer impromptu questions. House Speaker, Somsak Kiatsuranont, was named “Fake Hammer Dubai Brand” for his disappointing performance. When he was the deputy House Speaker in 1997, he was praised for his firmness, which led him to be named “Lord of the Hammer”. Moreover, he admitted to travelling to meet Thaksin in Dubai before taking the speakership. It should be noted that no MP was given the accolade “Parliamentary Decent”, though the nickname “Rising Star” was given to Ms. Rangsima Rodrasmee, Democrat MP from Samut Songkram. She is known for her constant work in monitoring government functions, reminding the House Speaker to remain neutral and to check names before voting. Rangsima is also praised for her unbiased work regardless of the party. Opposition leader, Abhisit Vejjajiva, was named “ Delayed Handsome” for his attentive and helpful suggestions as the Opposition leader even though he failed to solve these problems when he was Prime Minister. Political predictions for 2012 All media including Thai Rath newspaper predicted that Thai politics in 2012 would be HOT even though the 200 Opposition party members could not topple the coalition government. However, the media recognizes social networks’ strong impact and predicted that the following can result in political changes:
Social security contributions reduced On 19th December the Cabinet resolved to reduce the government’s, employers’ and employees’ contributions into the social security fund from 1.5% to 0.5% each. This will be effective from 1st January to 31st December 2012. The fund pays benefits for accidents, sickness, disability, death and childbirth. Students to get tablet PCs next semester On 27th December, the Cabinet approved the one tablet per child project following Phue Thai election campaign promise. All Prathom or grade 1 students will be given a tablet PC in the first semester of 2012 academic year. The Permanent Secretary of the Ministry of Education, Sasithara Pichaicharnarong, said that a Bt. 1,623 million budget has been allotted for purchasing of tablet PCs for 477,561 students. These are 62% of the grade 1 students nationwide. Estimated price for a tablet PC is Bt. 3,400 of which Bt. 3,100 is for hardware and Bt. 300 for educational software. The tablets will be kept in schools and distributed during class; students are not allowed to take them home. She expected procurement would be finished by February so the tablets can be distributed on the first school day, 17th May 2012. Previously, Mr. Amnuay Sunthornchot, Head of the Khaniyom Pheu Srang Chart Group (meaning: values for building the nation) disclosed a study on the provision of tablet devices that 94.10% of the public disagreed with the program. They believe that grade 1 students are too young for the PCs and it is unjust that only some of them will get them. The study also disclosed that Thai children use the internet and computer for entertainment rather than educational purposes. Smuggled rice pledged Journalists from the Commerce Ministry reported that many rice mills in the rice pledging scheme smuggled cheaper rice at Bt. 8,000 per ton from neighboring countries to pledge with the government at Bt. 13,000 per ton. The profit is then divided between mills at Bt. 3,000 and farmers at Bt. 1,500-2,000. Prasith Boonchuey, President of the Thai Rice Farmers Association noted there must be officials involved since the mortgage process requires certificates to be endorsed by either the Public Warehouse Organization or the Marketing Organization for Farmers. Then these certificates must be presented to the Bank of Agricultural and Cooperatives when cashing the funds. New land valuation postponed The Treasury Department announced that it would postpone a new assessment of property and land value for 6 months because of the floods. Free WIFI nationwide On 28th December, the Information and Communication Technology Minister, Anudith Nakornthap, said that the ministry has launched a SMART-WIFI@TH project to provide free WIFI at 20,000 sites nationwide. A further 40,000 will be installed in October 2012 and a total of 250,000 sites within 5 years. The free WIFI project aims to provide Internet accessibility in public places such as provincial, district and local authority offices, schools, hospitals and police stations. Users with ID cards can use the 2-megabit per second connection for a maximum time of 2 hours for each log in. Reduced special investigation cases On 19th December, the Cabinet resolved in principle to reduce the number of criminal cases liable for special investigation from 14 to 10 categories. They are:
Klong Dan wastewater case resolved On 8th December, the National Counter Corruption Commission (NCCC) announced its resolution of the case concerning the wastewater treatment plant in Klong Dan District, Samutprakarn Province. In this case, Wattana Asavahem was found to be liable and is allowed to submit a defense within 15 days otherwise the case will be forwarded for filing by the Attorney-General. Besides Wattana, 2 other politicians and 14 state officials were investigated. They included former Science Technology and Environment Ministers, Yingpan Manasikarn and Suwat Liptapanlop. Yingpan is already dead and Suwat was found not to be liable. The 14 officials found liable will be disciplined according to the NCCC Act of B.E.2542. |
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