PM charged over rice scheme corruption

PM charged over rice scheme corruption

- Protest flareup adds to government’s woes - Yingluck in televised plea to farmers - Public rallies behind embattled GSB

Tensions are expected to flare further after the government yesterday launched a political offensive blaming protesters for playing games with the rice-pledging scheme.

It came as police attempts to retake key protest sites erupted in violent clashes which left four people — including a police officer — dead and more than 60 injured.

Shortly after caretaker Prime Minister Yingluck Shinawatra delivered a televised speech decrying what she said was the rice scheme becoming politicised, the National Anti-Corruption Commission (NACC) announced its decision to charge the premier for dereliction of duty.

The commission said Ms Yingluck knew about alleged corruption in the rice scheme but failed to stop it. The NACC has ordered Ms Yingluck to answer the charge on Feb 27.

The NACC decision immediately dealt the prime minister a blow as police moved in to retake the anti-government rally sites on Ratchadamnoen Avenue. The ensuing clashes between the protesters and riot police left four dead and 64 injured.

Police, acting on the orders of the Centre for Maintaining Peace and Order (CMPO), successfully reclaimed the protest site at the Energy Ministry early yesterday. They also claimed part of the rally venue on Chaeng Watthana Road following negotiations later in the day.

While the bloody clashes played out on Ratchadamnoen Avenue, runs on the Government Savings Bank (GSB) continued for a second day. At the same time, key figures in the government, their supporters, and some business groups rushed to deposit money at the bank to stem the financial bleeding.

About 30 billion baht was withdrawn from GSB accounts on Monday by people who thought the inter-bank lending by the GSB to the Bank for Agriculture and Agricultural Cooperatives (BAAC) would be used to pay farmers facing long delays in payments for their pledged rice.

Despite assurances from the GSB that its financial standing remained sound after the withdrawals, more people flocked to withdraw their money yesterday. Most of the withdrawals were made in Bangkok, surrounding provinces and the South, amounting to a further 40 billion baht yesterday.

Key Pheu Thai Party politicians, including former premier Somchai Wongsawat and former deputy prime minister Plodprasop Suraswadi, went to the GSB and opened accounts to counter the deposit run.

Panthongtae Shinawatra, the son of ousted premier Thaksin Shinawatra, also dropped in to the bank and opened an account. He deposited 11.3 million baht he said he had pooled together from other banks which had “turned their backs” on farmers.

About 12 billion baht was deposited at all GSB branches yesterday. The figure includes new accounts and additional deposits made to existing accounts. Among the major depositors was Janya Sawangchit, a businesswoman and chief executive of P. Overseas Steel Co, who put in 200 million baht.

With more customers leaving the GSB, the fate of the prime minister and the rice-pledging scheme took a turn for the worse yesterday.

The NACC unanimously resolved to charge Ms Yingluck for dereliction of duty. She can remain in office until the commission decides whether to indict, a decision likely to be made by the middle of next month.

Before the NACC announced the charge, Ms Yingluck spoke on national television accusing her political foes of obstructing the implementation of the rice-pledging scheme, which she insisted was beneficial to farmers and the economy.

She reiterated the scheme was to improve the livelihood of rice farmers and boost the national economy. It has been successful in the more than two years since its launch, she said.

‘’I am saddened and must apologise to the farmers as anti-government groups are holding rice growers hostage and blocking the government from effectively implementing the scheme,” Ms Yingluck added.

Meanwhile, the BAAC’s Chiang Rai office director Pichian Jompong told a gathering of about 200 local rice growers the bank’s head office had not wired the money to pay farmers yesterday.

He said the rice scheme may not exist for next rice crop because the new government may not be formed in time. Farmers may have to wait for the new government to sell its rice stock or borrow to pay them.

GSB president quits over loan

Government Savings Bank president Woravit Chailimpamontri tendered his resignation yesterday amid heavy pressure over his decision to lend 5 billion baht to the Bank for Agriculture and Agricultural Cooperatives, which will apparently be used for rice-pledging payments.

The bank has suffered a net 55-billion-baht run on deposits since Monday. His resignation will be considered by the board.

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