Corruption fight takes centre stage

Corruption fight takes centre stage

Analysis: Two new reports warn graftbusters face an uphill task

Apush to eradicate corruption will take centre stage this year now the 250-member National Reform Council (NRC) has completed its task of making charter recommendations and is moving to work on the National Council for Peace and Order's (NCPO) reform agenda.

Prime Minister Prayut Chan-o-cha has indicated the fight against graft is the core of national reform in all areas.

While the NRC has yet to formulate measures to turn the tide against corruption once and for all, the fight is likely to remain an uphill task given the findings of two new reports — one foreign and the other domestic.

Two weeks before 2014 drew to a close, the Washington-based group Global Financial Integrity (GFI) published a report, "Illicit Financial Flows from Developing Countries: 2003-2012," which found that more than US$35 billion (1.1 trillion baht) was drained from Thailand through money-laundering, tax evasion, crime and false trade documentation in 2012.

This marked the fourth consecutive annual increase in corruption-tainted outflows, the report said.

It said nearly US$1 trillion was illicitly drained from developing countries worldwide.

Economist Joseph Spanjers, co-author of the report, said the money "could have been invested in local businesses, healthcare, education or infrastructure ... and that could have contributed to inclusive growth, legitimate private-sector job creation and sound public budgets".

Pramon Sutivong, chairman of the Anti-Corruption Organisation of Thailand, said the money which Thailand lost could have been spent on development, or the planned mega-infrastructure projects. 

During the 13th National Symposium of Justice Administration late last month, the Public Sector Anti-Corruption Commission (PACC) presented a study which identified eight fraud and corruption risk areas that anti-corruption agencies should look for. They are:

State projects remain chief targets of corruption rackets because state funds will only increase. Transnational corruption is anticipated.

Rules and regulations tend to be amended specifically to benefit certain groups. 

Legal loopholes related to international financial transactions continue to be exploited to transfer money out of the country.

Corruption in tax collection systems remains a risk, which could worsen disparities between the rich and the poor.

The possible introduction of inheritance taxes may lead to tax evasion and corruption.

Information technology can boost corrupt practices and help cover them up.

As free trade and investments are promoted, bribery will grow in importance, distorting competition and hindering fair trade.

Megaprojects and infrastructure schemes remain vulnerable to corruption.

PACC secretary-general Prayong Preeyajit said corruption is getting worse and methods involved are so sophisticated that law enforcement and anti-graft agencies find it hard to do their jobs effectively.

Mr Prayong said that corruption takes place in virtually every state agency and in private companies that work with the state.

"The conventional methods involve price collusion in bids for government projects, or a commission fee when a contract is secured. But these days graft has grown to include the policy-making level as well. A policy is designed with the purpose of cheating.

"Government officials are the key elements in this kind of corruption," he said.

Mr Prayong said the fight against corruption calls for new thinking.

"We need to establish a new system to reduce any room for corrupt behaviour. The suppression approach alone doesn't work because the wrongdoers can't be brought to justice. It fails to deter other people from engaging in corruption.

"It takes one year to examine a complaint and two to three years to investigate. When a case reaches the court it may take another four to five years to reach a conclusion. People tend to look beyond the threat of getting caught and see it as a way to get rich," he said.

Moreover, the risk of corrupt people being punished is relatively low. And due to limited resources, efforts to rein in corruption do not succeed.

"It is like we are using a cup to scoop up water as we try to drain a large flood," he said.

Do you like the content of this article?
COMMENT (4)