The caretaker government’s push for state enterprises to join a bid for promissory notes from the Bank for Agriculture and Agricultural Cooperatives (BAAC) to raise funds to pay rice farmers has hit a wall after the plan was strongly opposed by labour unions.
Spelling it out: staff of the Metropolitan Waterworks Authority say the use of its budget to fund the ricepledging scheme is against the constitution. Kitja Apichonrojarek
Some 500 members of the Metropolitan Waterworks Authority (MWA) union yesterday dressed in black to stage a protest against the utility’s plan to bid for the notes.
On Monday, the MWA received a letter from the Finance Ministry inviting the utility to take part in the government’s initiative.
The protest prompted MWA management to make a U-turn on its decision to bid for notes, with governor Thanasak Watanathana saying the plan had been suspended.
“At first, I thought the MWA has the capacity to do so, as we have liquidity of about 4 billion baht and it is all right to allocate 1 billion baht to assist farmers,’’ Mr Thanasak told the Bangkok Post.
“But we have now decided to suspend the plan, as we want everybody to work comfortably.’’
Mr Thanasak said the MWA earns about 18 billion baht in revenue annually, with expenses of about 14 billion.
The utility has an average profit of 6 billion baht.
Ekachai Ekharnkamon, the union’s adviser and former president, said MWA staff expressed their stance against the management’s plan to use the MWA’s financial resources to support the government’s rice-pledging programme.
“I understand the management is under pressure from politicians, but MWA money should be used just for our internal affairs,’’ he said.
Sirichai Mai-ngarm, president of the Electricity Generating Authority of Thailand (Egat) labour union, said the union will protest if the management decides to bid for promissory notes.
However, the management has already explained to staff that there is no such plan.
“Definitely, we will oppose it. Management also know what will happen if they decide to do so,’’ Mr Sirichai said.
Egat governor Soonchai Kumnoonsate said the utility has yet to receive a letter from the Finance Ministry about the matter.
“Under the Egat Act, Egat cannot lend money for general purposes and can only invest in financial instruments that are related to power business,” he said, adding that Egat has liquidity of 50 billion baht.
The head of TOT Plc reiterated that the state enterprise has no plans to buy the promissory notes.
Chief executive Yongyuth Wattanasin confirmed that TOT's board has yet to receive the government’s request.
“Please understand that TOT has no policy of getting involved in politics, especially in a political argument,” he said after a board meeting yesterday.
More than 1,000 TOT employees were dressed all in black to pressure the board to clarify its position.
The state telecom’s employees, led by labour union representatives, also raised concerns over its poor financial prospects stemming from “failure in management”.
Pongthiti Pongsilamanee, deputy chairman of TOT’s labour union, said the state enterprise looks set to post a loss of 5 billion baht this year on a sharp revenue decline to 31.7 billion baht.
“We're also concerned about TOT’s financial status in the near future and cast doubts on its 3G business direction,” he said, adding that the 3G direction appears to be skewed in favour of a particular private firm.
The state enterprise may supply Advanced Wireless Network, the 3G arm of Advanced Info Service (AIS), with its unused five megahertz on the 2.1-gigahertz frequency for a 4G trial, expecting 800 million baht a year in revenue as a network rental fee.
It is also in talks with AIS to help it provide 3G service.