FTI: Overhaul licensing system to cut corruption
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FTI: Overhaul licensing system to cut corruption

The Thai private sector has faced difficulties and delays in applying to the authorities for licences, not least due to the lack of a one-stop service agency. This has resulted in bribery and so it is imperative that the licensing system is overhauled, said Manapol Poosomboon, vice-chairman of the Federation of Thai Industries (FTI).

Successive Thai governments and monitoring agencies have issued a great deal of legislation and rules to block both those giving and receiving bribes as well as hamper malfeasance in the Public Sector’s procurement process. However, these attempts have been unable to eliminate corruption.

For a long time, the private sector and the people have faced obstacles in applying for licences from government agencies despite rules and laws on the steps and duration being in place. In practice, many agencies are not clear about their jobs while some work involves many agencies. There is no one-stop service unit assigned to handle the whole process so when applicants have problems, they seek a quick way out for their license to be issued. The result is bribery, Manapol said.

Any delays in the process with government agencies affect capital investment and lead to malfeasance. But if all steps in the process are clear, bribery in applying for licences will be reduced. For example, applying for a passport is today quite convenient with machines replacing humans and the outsourcing of jobs to the private sector, making it easier to obtain a passport than in the past.

In his opinion, we are failing if people have difficulties accessing the rules and processes of the bureaucratic system.

Manapol said corruption in Thailand is still a big problem. It is also on the rise and expanding. However, the private sector side is seen as offering tea money but in reality project owners also make demands and the private sector is forced to comply with such demands simply because they want to win the contract.

These instances have increased the workload of the National Anti-Corruption Commission (NACC) and Office of Public Sector Anti-Corruption Commission. In fact, each ministry should have an internal corruption audit unit like in the private sector that has a risk business management and monitoring unit.

When tea money is paid, the capital of a product or service paid for under the national budget is increased. The budget comes from people’s taxes meaning we have to pay more for a product or infrastructure fees. Importantly, it affects the quality of public works because a private firm that paid a bribe to the project operators has to cut costs in any way it can in order to make as much profit as possible.

Manapol emphasised that FTI has a clear standpoint on corruption and constantly reiterates to its members the importance of good governance in their companies because good governance, virtue, and ethics are needed to ensure sustainable business.

FTI has also organised training courses for the staff of companies covering, for example, the qualifications of good factory managers. Moreover, FTI has joined with anti-corruption agencies and the Thai Private Sector Collective Action Against Corruption (CAC) in implementing activities to make it clear that the FTI has zero tolerance for corruption.

Manapol said it is difficult to prevent FTI members from becoming involved in graft because competitiveness is part of business. When operators, government officials, and politicians have no honesty, solving the problems is difficult. For the FTI to call out bribery in an agency is also difficult.

No one wants to risk it as there are no guarantees about secrecy or the security of the complainant in the investigation that follows after a complaint is lodged. We do not have confidence in the government’s complainant protection system, he said.

In the past, people felt ashamed but now they don’t as they view such deals as an exchange of benefits. They don’t know that they must be honest in their duties. Their common sense has changed and they regard bribery as a common practice rather than corruption.

Therefore to solve the problems, we have to instil the values of honesty and ethics beginning in the family, schools, communities, and offices. Parents have to be good examples for their children and the public must help solve the problems. In Manapol’s personal opinion, solving the problems through politics and putting them on the national agendas has not worked as the politicians have made no move to seriously solve corruption.

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