The mistakes from the controversial rice-pledging scheme have proven to be a costly lesson for everyone.
Two ministers, Boonsong Teriyapirom, and his deputy Phum Saraphol, together with a group of officials at the Commerce Ministry, were the first to pay the price when they were charged by the National Anti-Corruption Commission for alleged wrongdoings in the scheme.
Caretaker Prime Minister Yingluck Shinawatra _ who keeps blaming her opponents for the scheme's shortcomings, in particular the inability of the government to get loans to pay farmers _ is to hear a similar charge put forward by the graft-busters next week. If found guilty, Ms Yingluck may face impeachment.
Another person who has paid a high price in the rice fiasco is president of the Government Savings Bank, Worawit Chailimpamontri. His decision to issue a huge loan _ 5 billion baht out of a 20-billion-baht credit line _ for the rice scheme to the Bank for Agriculture and Agricultural Cooperatives (BAAC) subsequently triggered public anger that led to massive withdrawals. This amounted to nearly 50 billion baht in just two days after the loan was announced.
Undeniably, large numbers of depositors, particularly those in Bangkok and nearby provinces, decided to pull their money from the GSB to punish the government. It does not mean they do not want the government to help farmers. After all, many civic groups have launched campaigns to raise funds for the farmers. Their objection to the GSB loan is merely a way to let the government know they detest the costly populist scheme that is ridden with secrecy and allegations of graft _ and the government's refusal to admit its mistakes.
Mr Worawit eventually resigned to show his responsibility for putting the century-old bank, as well as the country's banking sector, at such high risk from consumers' lack of confidence. The controversial loan was also quickly put to a halt to appease the angry bank clients and restore public confidence.
In fact, Ms Yingluck is right to say the rice issue has been politicised. That includes her own administration. When blaming ``rice politics'', she should not look beyond herself and the people in her government who are directly involved in the problematic scheme. The government must take the blame for the colossal losses from the scheme. Unfortunately, the government is as defiant as ever.
In her speech on Wednesday, the Ms Yingluck still declared the scheme a success despite it destroying the domestic rice industry and the government's failure to pay farmers, thus prompting them to take to the streets.
As the Suthep vs Thaksin/Yingluck strife drags on with no peaceful end in sight, rice politics are getting worse by unnecessarily putting the financial sector at risk. After the bank run, instead of appeasing the public, wealthy Pheu Thai politicians and red-shirt leaders added fuel to the fire by lining up for the media to deposit large amounts of money to the GSB as a countermeasure.
Leading the move was former prime minister Somchai Wongsawat and Thaksin's son Panthongtae, who put 11.3 million baht in his account and announced his action on his Facebook page. While they claimed they were using their money to help the GSB and eventually the struggling rice farmers, in reality the GSB has become a battleground of the proxy war between opposing forces of the political divide. If this goes on, it could spell disaster for the bank.
In the middle of the week, a clip was widely circulated in social media showing a frustrated staffer at the BAAC in Nakhon Ratchasima angrily telling a group of red shirts who wanted to deposit several million baht at the bank to help the farmers to go away. It's rare for a bank to disperse big clients but that staffer had a point. She did not want her bank to fall victim to political conflict like the GSB.
Banks as well as the whole banking sector must be spared from political games. Bank operators must be allowed to maintain their professionalism. All kinds of intervention for political gains must be stopped.
The ongoing confrontation between the government and its arch-rival the People's Democratic Reform Committee has already caused much damage to the nation's economy. Each side must do its best to avoid a proxy war that will aggravate the economic situation. For the banking sector, the key is: Keep it free from politics.