Organization: Central Michigan University
Newsgroups: bit.listserv.seasia-l
Date:         Thu, 23 Jul 1992 19:32:09 EDT
From:         Elliott Parker <3ZLUFUR@CMUVM.CSV.CMICH.EDU>
Subject:      TH: Anand slams bigwigs for phone deal
X-To:         seasia-l@msu.edu

=======================  Forwarded  Message  ===========================
Date: Fri, 3 Jul 92 02:09:31+070
From: kamol@munnari.oz.au (Kamol Hengkietisak)

     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.
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