Corruption team queries rice deals

Corruption team queries rice deals

Urges transparency, small-lot auctions

The Anti-Corruption Organisation of Thailand (ACT), a private-sector initiative, is urging the government to disclose information on rice sales, particularly government-to-government (G-to-G) deals but also purchases made under the rice-pledging scheme.

ACT chairman Pramon Sutivong slammed the government’s refusal to release details about rice deals as well as the public announcement of rice stock inspection dates. PATIPAT JANTHONG

The request is aimed at ensuring no corruption is involved in the government's rice subsidy programme.

Hundreds of Thai companies are now members of the ACT.

Saying government sales of pledged rice are confidential is unjustified, as the government used public funds for the scheme, said ACT chairman Pramon Sutivong.

He said there have been only a few cases in which partner countries have requested transactions be kept secret.

Commerce Minister Boonsong Teriyapirom previously said the government entered into agreements to sell 7.3 million tonnes of pledged rice through G-to-G deals.

No details about the deals were ever provided, and Mr Boonsong insisted more G-to-G deals would follow, as they allow sales in huge lots.

The rice pledging scheme was the centrepiece campaign promise of the current Pheu Thai government in 2011.

The programme is becoming a political hot potato as rice farmers demand the government review its recent decision to trim the paddy pledging ceiling price to 12,000 baht a tonne from 15,000, effective early next month.

The decision came after the government admitted a 136-billion baht loss from the scheme for the first two crops.

"We've got reliable information there might be corruption in the programme and the government could detect such irregularities if a probe is launched," Mr Pramon said.

The ACT plans to meet with Prime Minister Yingluck Shinawatra soon to discuss the issue.

Mr Pramon also criticised the government's public announcement of the exact date of its rice stock inspection across the country as a ploy to boost its image rather than crack down on graft.

The project's corruption involves rice millers, civil servants and politicians, he said.

The ACT also wants to launch probes on all pledging processes, punishing those involved in corruption and revealing the sales prices and amounts of rice stock, and reduce the lot sale amounts.

The group is pushing for the creation of assistance centres for rice farmers nationwide.

ACT vice-chairman Vichai Assarasakorn said using the ex-warehouse sales method for pledged rice in small lots can prevent collusion, as smaller players can join large rice millers in auctions.

This method can also address problems in finding places to store the rice and prevent exchanging new rice with old stock in warehouses as well as rice smuggling from neighbouring countries to benefit from pledging, he said.

ACT director Mana Nimitmongkol said G-to-G transactions are usually transparent, but corruption frequently occurs in such deals when they are executed secretly.

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