How does that happen?

16 08 2018

With the military junta in its fifth year of rule, at times it does seem to lose even its own plot. Below are three news items that PPT struggles to comprehend.

First, in a financial scandal that looks something between a white-collar crime and a Ponzi scheme with new means, the Bangkok Post reports that a big investor on the Stock Exchange of Thailand and staff from at least three commercial banks “are suspected of being complicit in a 797 million baht (US$24 million) scandal involving a foreign investor and the cryptocurrency bitcoin…”. The banks are the big three: Bangkok Bank, Siam Commercial Bank and Kasikorn Bank. Police say that “several of the banks’ employees failed to report money transfers of 2 million baht or higher, a serious violation of bank rules.” Those rules come under the Anti-Money Laundering Office.

It was just a couple of days ago that The Dictator sacked the head of AMLO. That head had only been in the job for about a month. Gen Prayuth Chan-ocha used his unbridled Article 44 powers to send the AMLO boss packing. What’s going on there?

(Call us suspicious, but we do recall the big wigs being involved in the Mae Chamoy chit fund that was exposed in the 1980s. The Wikipedia entry states:

The fund had a large number of politically powerful investors from the military and even the Royal Household and as such there were calls for the government to bail out the banks and the chit funds. After discussions with King Bhumibol Adulyadej, the nature of which were not made public, the Mae Chamoy Fund was shut down and Chamoy Thipyaso was arrested. She was held in secret by the air force for several days and her trial was not held until after the losses for the military and royal personnel involved had been recovered.)

Second, the Nikkei Asian Review reports that the junta is dumping its Special Economic Zone projects. It observes:

Since taking power in 2014, the military-led government had floated SEZ projects with the idea of building industrial complexes in the poor, remote areas along the country’s border. The plans backfired by fueling property speculation and sending land prices substantially higher, driving up the costs of building the SEZs.

How does that happen? Perhaps it has to do with the third story, with the junta stating it now wants to concentrate on infrastructure rather than SEZs.

Third, the Bangkok Post reports that “Transport Ministry officials have confirmed that auctions for the construction contracts for all sections of the first phase of the Thai-Chinese high-speed railway project will commence by the end of the year, despite unsettled negotiations between both countries.” How does that work?

One way it works is by dividing up the work into “14 separate contracts, which will use design and construction blueprints from China.” Quite a few are going to be in the money!


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