All that money and the Crown Property Bureau

28 07 2017

No one who has decided that monarchy matters in Thailand will be happy about the headline recently at the ASEAN Economist: “Clown king nears crisis point.”

Taylor McDonald’s piece uses material from Andrew MacGregor Marshall, now described as a “veteran observer of the Thai monarchy,” and apparently drawn from a recent BBC interview. Marshall, who previously argued that there was a succession crisis in Thailand, is cited in this report as declaring that “the situation was becoming increasingly unsustainable.” He is quoted as believing that as “details of the king’s lifestyle spread, the kingdom was approaching a ‘crisis point’…”.

We are not sure that there is any more crisis now than over the last decade or so, although Marshall’s account of the king’s cruelty, womanizing and his grab for power while re-feudalizing the palace are all undoubted, we have yet to see “crisis.” Some speculate that the crisis comes after the previous king is cremated.The article makes this point:

How much longer Thailand’s inflexible generals will tolerate Vajiralongkorn as their head of state will have to be seen. He will no doubt go down, along with the Emperor Caligula, as a key case study used by republicans arguing against constitutional monarchy.

While we may hope that this king gets the boot, the fact is that the deep political change needed in Thailand – an end to the monarchy – remains unlikely. That’s our speculation.

But to the point of this post. What caught PPT’s attention in the article were comments about the Crown Property Bureau.

The article states: “A close aide of Thailand’s King … Vajiralongkorn was this month named head of the agency which manages the monarchy’s vast holdings after legal changes giving the king total control of the Crown Property Bureau.”

About a week or so ago, secretly considered changes to the law governing the CPB were announced, giving the king absolute command over it. That change, the article notes, mean it is no longer possible for royalist regimes to claim the CPB is not the king’s but held “in trust for the nation.”

The CPB website continues to allow the download of a chapter on crown property in the palace-approved book King Bhumibol Adulyadej. A Life’s Work, which begins the chapter this way:

Since 1936, the law has made a clear distinction between property that belongs to the king as a person and that which belongs to the crown as an institution. The Crown Property Bureau (CPB) exists to manage the property of the crown. This property does not belong to the king in his private capacity, but to the monarchy as an institution which continues from reign to reign. This rather special category of property arose when an absolute monarchy, under which the king was lord over his realm and everything in it, both people and property, evolved into a constitutional monarchy that exists within a vibrant globalised economy.

By legal definition, the CPB is a juristic person. It is not part of the palace administration, nor is it a government agency, nor is it a private firm. It is a unique institution. It is also a rather mysterious institution.

The distinction between crown and person is now removed by the changes made by the military junta, responding to the king’s demand.

A later part of the chapter is about The Crown Property Act of 1948 which:

… reconstituted the CPB as a juristic person, independent of government and not placed under any ministry. The minister of finance remained as the ex-officio chairman of the CPB board. Other board members were to be appointed by the king. One of these would hold the post of director-general of the CPB and have full executive power.

That was also changed a couple of weeks ago. Now the king has control of the CPB. As the article states, this change “removes any pretence that the assets are for anything other than the private use of the eccentric king.”

Air Chief Marshal Satitpong Sukvimol is now the “chair the bureau, a role which was previously held by the finance minister.” The report states that “Satitpong is Vajiralongkorn’s long-serving private secretary and was put in charge of the king’s private property in January.” The linking of the king’s private property and that of the crown, long a fiction in reality but maintained in law, is now gone, giving Vajiralongkorn control over a vast economic empire. PPT estimates that the CPB controls assets of about $55-60 billion and his personal property is likely to be at least another $10 billion.

The changes at the CPB go further, with the king putting other trusted favorites on its board. The table below shows the board before and after the change. THe sources are the 2016 Annual Report by the CPB (it can be downloaded) and the Thai version of the CPB’s webpage on the Board of Directors:

As can be seen, those added are all former or current military and police officers, all of whom have been close to the prince-now-king and have seen promotions under his new reign.

We can return to Marshall’s comments. He says that the king “seems determined to reassert the rule of monarchy and he doesn’t want all these rules and regulations … he wants everyone to know that he controls the money…”. He’s got that. He also notes that the “king is notoriously spendthrift.” That’s true and he now has a huge pile of loot to use.

We recall that the monarchy and state were almost bankrupted when King Vajiravudh governed through cronies and was spendthrift. It remains to be seen whether Vajiralongkorn will cause the same level of disquiet that was seen under Vajiravudh and which inexorably led to the 1932 Revolution.


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