The opposition says it suspects that a Thai rice exporter has used a Chinese firm as a front company, in an attempt to benefit from the government's rice pledging scheme.
Prime Minister Yingluck Shinawatra responds to allegations from opposition leader Abhisit Vejjajiva that the rice-pledging scheme has failed. PATTANAPONG HIRUNARD
The Democrat Party highlighted alleged irregularities in the scheme on the second day of its censure debate against Prime Minister Yingluck Shinawatra and her administration yesterday.
Democrat MP for Phitsanulok Warong Dejkitwikrom said GSSG Import & Export Corp, a China-based trading firm, may have acted as a front for a Thai rice exporter.
Mr Warong said GSSG is represented in Thailand by Ratthanit Sojiratkul.
He is an assistant to Pheu Thai-list MP Rapipan Pongruangrong, wife of Arisman Pongruangrong, a leader of the red-shirt United Front for Democracy against Dictatorship.
Mr Ratthanit reportedly appointed Nimol Rakdee as his representative to seek the release of 5,000 tonnes of broken rice from rice pledging stocks stored in a warehouse in Phichit's Bang Mun Nak district, claiming it was destined for export to China.
The Democrat MP said Mr Nimol has close connections with executives of Siam Indica Co, an associated firm of President Agri Trading Co.
President Agri Trading was the country's biggest rice exporter during the Thaksin Shinawatra administration before it ran into financial trouble and faced accusations of fraud and embezzlement over 30,000 tonnes of rice in 2007.
"Mr Ratthanit's house is very old and his bank account has little money, so why did the Chinese firm appoint him as its authorised representative?" Mr Warong said.
He claimed Mr Nimol was the same person implicated by the National Anti-Corruption Commission in alleged rice sale irregularities during Thaksin's tenure.
If the Chinese firm was used as a front for the Thai company, the Thai exporter would make 3,000 baht per tonne through the government's rice pledging programme.
Democrat MP for Yala Prasert Pongsuwansiri yesterday accused the government of favouring Siam Indica in rice bidding.
He cited a letter from the Thai Rice Exporters' Association recently sent to the government asking why the company was allowed to export 300,000 tonnes of 15% white rice to Indonesia without bidding.
Democrat list MP Kiat Sitthi-amorn charged that the Thai rice industry has been disrupted by the government's pledging scheme.
He raised doubts over Ms Yingluck's comments that government-to-government (G-to-G) rice sales stand at 1.4 million tonnes, saying the customs office has documented only 649,000 tonnes of rice exports during this administration.
The difference could be the result of a quantity of rice being recirculated two or three times, he alleged.
"In every G-to-G deal, the sale price is lower than the market price," Mr Kiat said. "But you [Ms Yingluck] said G-to-G deals must lead to a better price than the market's. You must explain this."
Mr Kiat said Thailand will be challenged by the World Trade Organisation as the government subsidised exporters by offering a lower rice price than that in the pledging scheme.
Thailand could be at risk of being forced to pay compensation or facing punitive measures, he added.
Commerce Minister Boonsong Teriyapirom rose to defend the rice policy and the G-to-G sales, saying the opposition's accusation was "imaginary".
"There's nothing at all [in the allegations]. It is only imagination. What we do doesn't differ from what the previous governments did," he said.