HDFF Bi-Weekly Thailand Review 1/10-12/10

HDFF Bi-Weekly Thailand Review 1/10-12/10

Busy market in Narathiwat

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Summary

The Pheu Thai Party is looking for a new leader and Interior Minister after Yongyuth Wichaidit resigned from cabinet because of the unlawful approval of a land sale 14 years ago.

On the economics’ side the government’s rice-pledging scheme is safe for now but next week’s auction on third-generation (3G) wireless spectrum is in danger, as Anuparp Thiralarp argues that the regulations for the potential operators would contradict with Section 47 of the constitution and the common welfare.

Since Monday more than 25 people have been killed in Thailand’s troubled Deep South. Nevertheless, government official encouraged people to open business on Friday and it appears that many have done so.

Furthermore, the much-hyped tropical storm Gaemi was downgraded to a depression at the beginning of the week, bringing just moderate rainfall to the capital.

Politics

The Pheu Thai Party is looking for a new leader and Interior Minister after Yongyuth Wichaidit resigned from cabinet after rising pressure over the Alpine land case. Back in 1997 a company owned by Thaksin Shinawtra bought the Alpine Golf and Sports Club in central Pathum Thani province from another company affiliated with a politician. In 2001 though, Thailand’s Council of State, the legal interpretative body of the government, ruled that the original sale of the land was illegal because it had been ceded to a Buddhist temple in a will and religious land was not allowed to be sold or transferred. Nonetheless Yongyuth in 2002, acting as permanent secretary of the Interior Ministry, declared that the land sale had been legal. Now, 10 years later, the National Anti-Corruption Commission (NACC) decided that Yongyuth acted unlawfully in approving the land sale. With intensifying pressure on the Interior Minister he was left with no other option than resign from his post to avoid both legal problems as well as further damage the party’s reputation. Pheu Thai leaders from Prime Minister Yingluck Shinwatra to Defence Minister Sukumpol Suwanatat praised Yongyuth’s decision to step down as a “sacrifice” and “courageous” decision.

Following Yongyuth’s resignation therefore the Pheu Thai Party is now in search of another Party leader, Interior Minister and Deputy Prime Minister to replace Yongyuth. This gave rise to renewed cabinet reshuffle speculations. As party leader the Prime Minister’s older sister Yaowapha Wongsawat was recently proposed to take over. Analysts concluded that “Sister Daeng”, as she is known by party members, is already an influential figure but might be hesitant to put herself into the spotlight. She had previously stated not wanting to be part of the party’s executive, probably with the dissolving of the previous parties and banning of the party’s executives in mind. The Interior Minister’s work is meanwhile taken over by various other executives. (The Washington Post) (The Huffington Post) (Bangkok Post) (The Nation)

With observers speculating about an imminent cabinet reshuffle after Yongyuth Wichaidit’s resignation, two red shirt leaders visit to Hong Kong to meet with Thaksin Shinawatra gave rise to the idea that plans for a future reshuffle are drawn up there. Jatuporn Promphan and Natthawut Saikua were granted permission to leave the country by the Criminal Court with Chief Justice Thawee Prachuaplap arguing they were believed not to jump bail. Jatuporn is tipped to join the cabinet after the next reshuffle but stated the meeting with Thaksin was purely social and not political. Prime Minister Yingluck Shinawatra meanwhile kept insisting that no reshuffle was planned in the near future and everybody was allowed to meet with Thaksin but reshuffle decision were done by her and not her brother. (Bangkok Post) (The Nation)

Economics

The government’s rice-pledging scheme is safe for now, after the appeal of Adis Israngkura na Ayutthaya to stop the controversial policy was rejected by the Constitutional Court this week. The week before, a petition was set up by the dean of the School of Development Economics at the National Institute of Development Administration and subscribed by 146 other professors and students, arguing that the government’s policy was going to destroy the free trade by de facto creating a state monopoly. However, the court decided unanimously that the issue is outside its jurisdiction and that the petitioners’ rights and liberties were not touched by the scheme. Nevertheless, Mr. Adis’ approach reflects the high discontent of a significant amount of people with the scheme, mainly criticizing its high vulnerability to corruption and its inefficiency, as it would waste exorbitant amounts of tax payer’s money without really helping farmers. Opponents also argue with the enormous decrease of rice exports after the initiation of the scheme, highly doubting the alleged government-to-government (G2G) deals announced by the Commerce Ministry, which are planned to compensate the export losses. With Virabongsa Ramangkura, chairman of the central bank, even one of the top advisers in the government raised serious concerns about potentially high corruption and economic damages caused by the scheme. Furthermore, a total of 81 senators led by Paiboon Nititawan formally requested a general debate on the issue (which will probably be later this month) with the government justifying and explaining its plans. The government, however, advocates the scheme, arguing it would improve farmers’ living standards and would raise their incomes. Meanwhile, Prime Minister Yingluck Shinawatra announced that the government would stick to the scheme. Following the petition led by Mr. Adis, she was also confident to convince the court of the advantages of the scheme, if necessary, as well as in the senate later this month. Though irregularities were not ruled out completely, she said that her deputy Chalerm Yubamrung was ordered to take measures against further corruption cases related to the scheme. So far, legal action had already been taken against 25 people involved, according to her.

(Bangkok Post) (The Nation)

Next week’s auction on third-generation (3G) wireless spectrum is in danger, as a complaint from former president of the Thailand Telecommunication Management Academy, Anuparp Thiralarp has chances to be taken up by the Central Administrative Court. Mr. Anuparp argues that the regulations for the potential operators would contradict with Section 47 of the constitution and the common welfare. He wants the National Broadcasting and Telecommunications Commission (NBTC) to change the binding regulations for the operators, especially service continuation guarantees, maximum fees and ensured public access. The current draft had loopholes, he says, allowing regulation adjustments after the auction. This would contravene a previous court decision asking the NBTC to solve unfair contracts imposed on pre-paid mobile phone users six years ago. The NBTC however, refuses Mr. Anuparp’s criticism. Fee ceilings prior to the licensee selection were illegal, as they depend on factors like predicted investment costs – an element not foreseeable without knowing the operator. The NBTC adds, that the fees had to be set fairly though. On the other hand, a postponement of the Tuesday’s auction would cause an economic damage of 210 million baht a day, according to the NBTC. Following the schedule, the NBTC will auction off 45 MHz of bandwidth in the 2100-megahertz band next Tuesday. The total bandwidth will be divided into three groups, which are likely to be purchased by Advanced Wireless Network, DTAC Network and Real Future. The reserve price set by the NBTC is 4.5 billion baht per 5 MHz. It is currently planned to announce the winners of the auction on October 22. (Bangkok Post)

Security

The security situation in Thailand’s southernmost provinces Pattani, Yala and Narathiwat remains precarious. Since Monday, more than 25 people have been killed or wounded in multiple assaults. Among them three defence volunteers, a policeman, two military rangers and nine para-military rangers. (Bangkok Post, The Nation)

The defence volunteers were gunned down in Yaring district on Monday. The three people were on their way back from a security meeting at the Yarang district office when they spotted someone they knew and stopped for a chat near Ban Yai in tambon Ratapanyang. A pickup then drove past and two men on the back opened fire at the volunteers’ vehicle. The police found more than 100 bullet shells on the road and two corpses on the road; another killed person was in the car. The attackers could steal the defence volunteers’ weapons, an AKA rifle, an M-16 rifle and two pistols, before fleeing. (Bangkok Post)

The policeman was murdered in Rangae district of Narathiwat on Thursday. The officer was returning on a motorcycle from business at Tanyongmas Municipality when two men on another motorcycle followed him and opened fire. The policeman was hit five times and died on the spot. The attackers took his pistol. (Bangkok Post)

The two military rangers were shot dead on Tuesday afternoon. They were attached to Ranger Forces Regiment 45 and died on their way from Bangosarayo village in Rangae district to a nearby market. The shooters took away one .38 pistol. (Bangkok Post)

The nine para-military rangers (Ranger Company 4714) were wounded when a bomb exploded as they were returning to their base from a patrol in Yala’s Yaha district on Wednesday afternoon. The bomb was planted in a motorcycle parked on the side of the road and detonated remotely with a cell phone. Another bomb was placed about one kilometer from the spot but the explosion did not hurt anyone. (Bangkok Post)

Despite threats by insurgents, government officials have tried to encourage people in the Deep South to do business on Friday. Prime Minister Yingluck Shinawatra has set up a hotline (telephone number 1890) for vendors and businessmen who need help and protection while trading on Friday. In Pattani, the Southern Border Provinces Administrative Centre, the provincial governor and other officials visited markets in the main town and distributed leaflets issued by the Chularatchamontree which explain that working on Friday is not against Islamic principles. Most local businesses in the southernmost region of the country appeared to be open for work on Friday, the Muslim Sabbath, after being closed last Friday because of fears of terrorist strikes. Nevertheless, confidence cannot be spurred for all traders. (Bangkok Post)

During his one-day visit to Malaysia on Monday, Foreign Minister Surapong Tovichakchaikul asked Malaysian Prime Minister Najib Rayak to support Thailand’s position on the situation in the deep south. Malaysia is a member of the Organization of Islamic Cooperation. (Bangkok Post)

The much-hyped former tropical storm Gaemi was downgraded to a low pressure system when it hit Thailand during the first half of the week. It only caused moderate rainfall in Bangkok on Monday; the average rainfall was measured at 60 millimeters in Bangkok, well below the 90 millimeters predicted earlier. There were reports of minor flooding in some traffic lanes. On Monday, the Disaster Prevention and Mitigation Department reported that flooding affects 40 districts in nine provinces (Prachin Buri, Chachoengsao, Phitsanulok, Phichit, Ang Thong, Ayutthaya, Suphan Buri, Nakhon Pathom and Samut Prakan). (Bangkok Post)

By Friday, Ratchaburi was still reeling from the impacts of Gaemi. Hundreds of families along the Mae Klong River had to move to higher ground after the storm caused heavy downpours in Ratchaburi, Kanchanaburi and other provinces. Ratchaburi bore the brunt of the storm because the Tha Muang Dam in Kanchanaburi released a huge volume of water, which went downstream to Ratchaburi, where the Mae Klong was already swollen after local heavy rains. Ratchaburi Irrigation Project director Kanit Chinnawong expected the situation to return to normal during the weekend. (The Nation)