From: kamol@munnari.oz.AU (Kamol Hengkietisak)
Newsgroups: soc.culture.thai
Subject: July3: Anand criticises officials of corruption (resent)
Date: 23 Jul 92 06:10:43 GMT
Organization: Mail/News gateway

Anand slams bigwigs for phone deal manipulation
 
     PRIME Minister Anand Panyarachun for the first time has 
openly accused certain top officials of being corrupt in handling 
the three-million-line telephone  Transport and Communications 
Minister Nukul Prachuabmoh called for the officials responsible to 
feel shame for their actions and resign.
     Mr Anand said yesterday that during his first term as premier 
his intervention -- to prevent a monopoly controlling the entire 
original project -- helped the Government earn an extra 200,000 
million baht.
     "All Thais should remember this figure. It is a lesson for us 
that some state employees acted for their own benefit and abused 
their authority in helping some private groups get many project 
concessions through dishonest and non-transparent methods, causing 
heavy losses for the nation and all Thais," he said. "The benefit 
to the state employees who gave themselves as instruments of 
private firms was petty compared with the nation's loss. The 
private firms had stolen most of these benefits while all Thais, 
who are owners of the country, never had the chance to know how 
much the country had lost," Mr Anand said. The Premier made his 
scathing criticism while presiding over a contract- signing 
ceremony between the Loxley-Jasmine consortium -- which will 
provide one million lines outside Bangkok -- and the Telephone 
Organisation of Thailand.
     Mr Anand said he is pleased that finally a second private 
group can compete in operating the provision of basic phone 
services.
     "This is the method by which the public and businesses will 
receive maximum benefits. I would like to express my appreciation 
to the private group in showing its courage in developing this 
project."
     Mr Anand recalled that when the Chatichai government approved 
the three-million-line project in October 1990, the proposal 
became controversial. Criticism mounted of a lack of openness 
surrounding the project. The project became one of the reasons 
cited by the military in toppling the Chatichai administration.
     After Mr Anand was appointed premier for the first time, a 
review of the proposal revealed many loopholes in the terms of 
reference used to assess the first round of tenders. "Some bidders 
were disqualified without proper reasons being given and the 
selection of the winner (the Charoen Pokphand Group) was not based 
on the principle to acquire maximum benefits for the TOT," Mr 
Anand said.
     Mr Anand therefore appointed a working group to hold talks 
with CP Telecom, a subsidiary of the CP Group which was to 
undertake the entire project. However, Mr Nukul encountered 
problems with certain members of the TOT board and could not hold 
further talks with the group.
     "So I decided to tackle the problem myself," the Premier 
said.
     After several rounds of controversial negotiations, the CP 
Group agreed to develop only two million lines in Bangkok and 
agreed that it would not get involved, directly or indirectly, in 
the development of the remaining one million lines in the 
provinces.
     "I was strongly criticised for allowing CP Telecom to develop 
only the network in Bangkok -- the profitable part -- with claims 
the provincial part would fail to attract interested parties 
because it would sustain losses," Mr Anand said.
     However, four groups tendered for the provincial phase. "But 
at the beginning there were efforts to delay the selection 
process. In the middle of March, I called for speedy selection and 
the Cabinet on March 17 told the TOT to complete its selection 
within one month," he said.
     Mr Anand said it is fortunate he has been appointed Premier 
for a second time and that Mr Nukul was reappointed as Transport 
and Communications Minister with Loxley selected to develop this 
phase.
     "This time, tenders proceeded openly and honestly. Offers (of 
benefits to the country) by all contenders were higher than the 22 
per cent previously offered (by the CP Group). The offer of 43.1% 
(by Loxley) and the previous offer of 22%, show the Government 
will gain 138,000 million baht more throughout the 25-year 
concession period. "Moreover, under the new contract, the TOT will 
receive profits of 37,000 million baht from the operator -- that 
is, the Government will gain 175,000 million baht more from this 
project. When other savings and income from other sources are 
taken into account, the Government will gain about 200,000 million 
baht more, which is equivalent to half the Government's spending 
budget this year."
     Mr Anand, asked later if he will remove certain top officials 
from the TOT, said: "As you know, there are no receipts for 
corruption. Despite knowing (who are corrupt), it is difficult to 
take action against them."
     Mr Nukul will handle this matter, he said.
     Mr Anand, invited to say whether it is possible for the 
dishonest politicians responsible to return to power after the 
general election, said: "If the head of the government is not 
corrupt, the chances for others to be corrupt will be less. It's 
the duty of the public to elect good people to run the country."
     Mr Nukul, referring to those he accused of damaging the 
nation, said: "If I were them, I would resign. One should be 
responsible and penitent. They know what they have done; they 
should resign," he said.
     TOT managing director Paibul Limpaphayom, among top 
executives directly involved in the telephone projects, declined 
to comment. "Please don't ask me. Don't get me involved," he said.
Newsgroups: soc.culture.thai