Who cut the forests?

23 07 2015

Self-appointed Prime Minister General Prayuth Chan-ocha has an opinion on pretty much everything. As The Dictator his opinion is widely heard even if his opinions are those of a cloistered military bureaucrat with little knowledge of real life.

Recently he has had opinions on the environment, commenting favorably on the proposed coal-fired power station down south and denigrating those who oppose it. Military dinosaurs have a penchant for the past, and coal-fired power stations seem set to go the way of the dinosaurs.

Continuing on the environment theme, the military junta ordered an end to deforestation. Recently, The Dictator has remarked that elected governments had destroyed 8.6 million rai of forest in the north and northeast.

Former Democrat Party MP Watchara Petthong seemed a little miffed by this allegation. Watchara stated:

It sounds like the PM is blaming democratic governments – but the true reason forests disappeared was that government officials did not do their duty. Some, like those from the Royal Forestry Department, the Department of National Parks Wildlife and Plant Conservation or the Department of Provincial Administration, sought vested interests….

He added:

Another reason the country’s water resources had turned into bald mountains was that a giant conglomerate lures poor farmers to grow corn to be used as animal feed. This has caused natural disasters like floods, landslide and drought….

We guess he means CP. We’d also note the data on land ownership from an earlier post, reproduced here, which suggests another phenomenon at work; the acquisition of large plots of land across the country.Land 2The CP lot come in second, but are a long way behind the biggest landowner. That Sino-Thai tycoons own huge swathes of land seems to be a relatively recent phenomenon associated with the 1980s boom that began under the premiership of General Prem Tinsulanonda. That followed a huge expansion of agricultural land in the 1960s and 1970s that cleared considerable forest.

The same PPT post had the ownership list for politicians from a couple of years ago. If those top 10 politicians were added together they would have been listed at no. 5 in the list reproduced above. Most of those politicians were serious business people before entering parliament.

Watchara goes further, accusing The Dictator of negligence: “Even in areas under the jurisdiction of the military during the period the PM was then Army Chief, the mountains turned into ‘bald’ mountains. Did the PM ever look into the problems?” He states that “forest encroachment also took place during the Prayut government,” and suggests that the current military dictatorship and the fear it engenders prevents “decent state officials” doing their jobs.

“Politicians and senior officials encroach upon reserve forests, water sources, mangrove forests and the Sor Por Kor land. How can the Land Department issue land title deeds for them? The PM must order a check of all plots and exercise Article 44 to confiscate the land,” he said.

Watchara response is to demand even more use of dictatorial powers (sigh…) and “urged Constitution Drafting Committee chairman Borwornsak Uwanno to incorporate in the charter draft a rule that MPs, Senators, ministers must not be involved in forest encroachment, either directly or indirectly through nominees.”

Given his comments on the military, perhaps he thinks that most future MPs, Senators and ministers will be from the military.

PPT well recalls the encroachment on forests that was encouraged in the war against the CPT (opens a PDF). Many of those areas are those where the “forest encroachers” turn out to be people the military and other security organizations encouraged to settle in and clear forest hill areas in the north and northeast a couple of generations ago.

Even in the late 1980s there were endless streams of military-registered logging trucks coming out of military-controlled hill areas that were deforested. Over several decades, many of the military brass made huge fortunes through their involvement with forest and land encroachment in those areas and along Thailand’s borders.

They worked in tandem with local businesspeople-cum-politicians and with Sino-Thai tycoons.





Rich still doing very well

6 06 2015

Forbes has published its latest Thailand Rich List. There are no real surprises for the mega-rich in Thailand continue to do well through political instability and military coup. The ranking of Thailand’s 50 richest is available from Forbes.

CP’s agribusiness tycoon, the aging Dhanin Chearavanont, is the country’s richest man with a net worth of US$14.4 billion. Next is beverages and land tycoon, Charoen Sirivadhanabhakdi,with a net worth of $13 billion. moneybags

The list does not include the monarchy, which is covered in another Forbes listing. The monarchy’s combined wealth, which is mostly managed by the Crown Property Bureau, is variously estimated at $40-50 billion. This is equivalent to the total combined wealth of the top 3-4 tycoons in this Forbes list.

Most of those on the list have close connections to the palace, although they are big enough to split their bets when there is political agitation. As we noted last year, since 2011, the assets of the mega-rich have increased very substantially, and this has continued in this listing.

Thaksin Shinawatra and his family ranked 10th, as they were in the last listing, with the same combined assets:

Dhanin Chearavanont; US$14.4 billion
Charoen Sirivadhanabhakdi; $13 billion
Chirathivat family; $12.3 billion
Chalerm Yoovidhya; $9.6 billion
Krit Ratanarak; $4.7 billion
Vanich Chaiyawan; $3.95 billion
Santi Bhirombhakdi; $2.9 billion
Prasert Prasarttong-Osoth; $2.8 billion
Vichai Srivaddhanaprabha; $2.5 billion
Thaksin Shinawatra; $1.7 billion

Forbes states: “This list was compiled using shareholding and financial information obtained from the families and individuals, stock exchanges and analysts, the Stock Exchange of Thailand and regulatory agencies.” It is not clear whether it includes land holdings.





Updated: Land, wealth and influence

28 03 2015

One of the recent “debates” in the puppet National Legislative Assembly had to do with land tax. This issue has been around for decades, and neither elected governments nor authoritarian and military regimes have wanted to touch it. The puppets seemed to drop it pretty quickly, not least because self-appointed prime minister General Prayuth Chan-ocha intervened.

The reason land tax is a hot potato is that Thailand’s elite invests heavily in land, often speculatively, with the idea that it avoids scrutiny and tax, and land thus provides essentially tax-free wealth parking.

In a report at the Bangkok Post and widely reported in other media, the NGO Local Action Links (LocalAct) claims that 530 (then-)elected politicians owned land worth a total of 18.1 billion baht and buildings worth another 6.4 billion baht. The NGO said these holdings indicated “why they are opposed to a proposed land and buildings tax…”.

The error here is that none of these politicians is in the puppet Assembly. All of these politicians were ditched by the 2014 coup. The bigger point is correct: politicians, like others in the broad elite, like to buy properties for the reasons mentioned above.

The average for each of these politicians is about 47 million baht or $1.44 million, the price of a luxury condominium or a modern and well-appointed house and land in Bangkok. Averages don’t mean a great deal in terms of distribution of wealth, for as one of the tables reproduced in the Post shows, land wealth varies greatly. (We always worry about out computational skills when dealing with billions, so hopefully we have got it right.)Land 1 What is interesting in the report is the focus on elected politicians, many of whom have businesses when they enter politics, and that data are what is revealed in their self-declarations of ownership.

Why politicians? Why not the wealth of the military leaders and their puppet politicians?

Sure, the figures aren’t directly comparable, but the land and buildings declared by elected politicians is, on average, less than the average declared total assets of the military and police members of the puppet National Legislative Assembly. In an earlier post we provided these details: If a general in the armed forces, your assets average about 78 million baht, If you managed to become an admiral in the navy, you sail away with average assets of about 109 million baht. The top money secretes to the top police. The average for the police is a whopping 258 million baht.

And then what isn’t emphasized is that these politicians are tiddlers when compared with the whales of land ownership. The study showed that 14 then-MPs held land covering more than 1,000 rai while 25 had more than 500 rai and 126 held more than 100 rai. When the second table is examined, the really big landowners are Thailand’s wealthiest.

Land 2The report in the Post states: “Politicians, however, are not the largest group of landlords, according to Lands Department data.” PPT has posted on this previously.

Some of that data is presented above showing the control by Sino-Thai tycoons, with the top 10 landholders owning almost 1 million rai. That the Sirivadhanabhakdi family owns land the equivalent size to about 1,000 square kilometres, which is about the area of Hong Kong and larger than Singapore (by about 25%) might be a surprise, when it has long been thought the Crown Property Bureau was the largest landowner in the country. It would be interesting to compare values, for the CPB’s land – much of it in high-priced areas of central Bangkok – was valued at about $30 billion about a decade ago.

The Chearavanont family, with about 200,000 rai, is the family that controls the CP group, the agro-industry giant, while United Palm Oil Industry, with some 44,400 rai, is a company that has its main owners in Singapore, and tightly inter-connected and family-owned structures that include, for example, Lam Soon (Thailand).

The Forbes list of Thailand’s richest, excluding the royal family are: (1) Sirivadhanabhakdi family, $12.9 billion, (2) Chirathivat family, $12.1b, and (3) Dhanin Chearavanont, $11.5b.

The royal connections of the Sirivadhanabhakdi and Chearavanont empires are well-known. Such connections are unavoidable, but not so the links to The Dictator, the broad anti-democrat alliance and the Democrat Party.

Update: Interestingly, in a revised report, the Bangkok Post – which maintains the original story too – refers to ex-politicians, removes the table showing the Crown Property Bureau and does not mention the CPB when writing of big land owners.





Prayuth refuses to talk

4 11 2014

The Dictator, General Prayuth Chan-ocha, usually loves speaking, so long as he has a captive audience who are unable to question him. Today he was far less willing to engage in discourse as he was asked a difficult question.

Khaosod reports that Prayuth was asked about his land sales last year, worth 600 million baht to a private company connected with royalist tycoon Charoen Sirivadhanabhakdi. PPT posted on this earlier.

When a reporter asked Prayuth bravely asked about the land sale, The Dictator “shot back that the media has no business questioning him on the matter.”

He declared:

“The land has belonged to me since I was a kid, it belonged to my father. So what’s the problem?…. Please stop criticising me already.”

Earlier, when asked about his wealth, Prayuth stated: “I don’t know. I don’t remember,” Gen. Prayuth said on 1 November. “I am not a businessman. Please don’t ask me about this.”

Today he declared that the purchaser wanted the land for “investment” purposes and asked: “The company wouldn’t have bought the land out of foolishness, don’t you think? If they can’t invest in the land, why would they buy it?”

Um…. How about as a payment for the loyalty and action of the then military commander in working to bring down the elected government?

 





Prayuth’s land deals

3 11 2014

Isra News has a story worth reading, but in Thai (บริษัทรับซื้อที่ดินพ่อ“ประยุทธ์”600 ล.“หุ้นใหญ่”ตั้งบนเกาะบริติชเวอร์จิน), with documents and other details that essentially says this:

In tracing the transaction of land sale by General Prayuth Chan-ocha, as disclosed in the NACC’s assets declaration list, Prayuth indicated that his father sold nine plots of land in Bang Bon district on 9 May 2013 to the 69 Property Co. Ltd. for 600 million baht. Isra’s investigative report revealed that the “major shareholders” of the company also have registered another company with the address in the British Virgin Islands and linked this company to ThaiBev tycoon Charoen Sirivadhanabhakdi. 69 Property Co. Ltd. was apparently established only 7 days before purchasing the pieces of land from Prayuth’s father.

Should anyone be surprised?





No populism here II

4 10 2014

Populism under Thaksin Shinawatra, at least when he was first elected in 2001, was very popular. As the Asian financial crisis lingered and as the Democrat Party-led government fumbled recovery and did the bidding of the IMF, the struggling rich saw Thaksin as a political savior. His reflationary “populism” boosted consumption. Of course, as he became more popular, many of the Sino-Thai tycoons went back to their “natural” habitat, tying themselves to the military’s boots and the boostering for the palace.

When PAD and then the anti-democrats associated with the Democrat Party were on the streets opposing “populism,” many of the big Sino-Thai capitalist class threw their money behind them. They cheered the two military coups in 2006 and 2014.

It can be no surprise, then, to read in the Bangkok Post that the “nation’s business tycoons are being urged to help play a crucial role in stimulating the country’s economy in order to restore foreign confidence in Thailand.” Some of the business whales attending a friendly meeting with the General masquerading as Commerce Minister to celebrate the military dictatorship included:

Business leaders including Dhanin Chearavanont, chairman of Charoen Pokphand Group, Charoen Sirivadhanabhakdi, chairman of Thai Beverage, and Tos Chirathivat, chief executive of Central Group, and Vathit Chokwatana, director of Saha Group. These are the most powerful capitalists in the country.

The General, not to be confused with The Dictator, said “the government had called on the tycoons’ cooperation in the government’s reform attempt as well as to boost the quality and add value to Thai products.” It was reported that they also “discussed strategies to restore the confidence of foreigners in Thailand and the Thai economy and how to boost the country’s trade and investment.”

Not coincidentally, the military dictatorship undertook some payback: “The government [it means the junta] also pledged to accelerate amending more than 20 existing laws and regulations that are deemed obstacles to trade and business.”

Sounding like a member of the Chinese Politburo, the General chortled about the great success of getting his business allies to a meeting: “The meeting also marks a new dimension, as the business tycoons agreed to join the meeting and offer their valuable opinions.” He triumphantly declared that the “private sector is also patriotic. The business leaders agree with the government’s efforts and are ready to team up with the government sector to improve the country and the economy…”.

The General claimed that the big capitalists “agreed with the government’s new economic stimulus packages while suggesting the government let market forces work in handling farm prices.”

Naturally, the commercial capitalists at Saha and Central will be pleased with the junta’s economic stimulus.

Tos Chirathivat was happy. He said the “joint meeting between the Commerce Ministry and business leaders was a good start to underlining cooperation between the government and the private sector.”

Giant capitalist and huge landowner Charoen “agreed, saying closer cooperation and connectivity between the private sector and state bodies would streamline the private sector in running their business, eventually helping to raise the quality of life of low-income earners.” He probably means his drivers, gardeners, maids and other servants.

We said the military junta was proposing populism for the middle class. It seems that the coup is for the rich too.





I want more!

22 06 2014

One of the major complaints made by red shirts in their campaigns for elections in the 2008 to 2010 period was that the amart was a powerful group that defended the status quo and refused to provide any political openings for those who wanted more representation of their interests.

pyramidThe amart was never particularly well defined. It was the elite, the royalist elite, the network monarchy, Sino-Thai tycoons and so on. When rhetorical push came to political push, sometimes the links between the (Sino-Thai) monarchy and Sino-Thai capitalists were made, and there were attacks on corporations such as the Bangkok Bank.

More recently, when Suthep Thaugsuban’s anti-democrats were on the streets, there were several articles that made connections between him, his movement and tycoons. While Suthep may have attacked nepotism and cronyism that he alleged were features of Thaksin Shinawatra’s clan, it is evident that Suthep was doing the work of big clans and networks that had greater longevity than Thaksin’s lot.

There have been various mappings of the group known as the Sino-Thai business class and its networks.

The Sino-Thai rich have long been required to demonstrate their political loyalty by writhing about at te feet of the royals, offering them buckets of money and swathes of land. The royalist Democrat Party also collects loot from the rich and is the tycoons’ preferred party, if they must endure party politics.

Of course, there are various measures of the huge troughs of money that accrue to the amart through its political and economic dominance. The obscene wealth of the royals has also been detailed as well as the huge handouts the monarchy gets from the taxpayer.

Charoen

Charoen Sirivadhanabhakdi

Until a recent report at the Bangkok Post, however, we had never seen a listing of landholdings. There, it is the alcohol tycoon Sirivadhanabhakdi family that is listed as owning the most land in Thailand, with 630,000 rai. PPT is never the best with calculations, but we think that’s nearly 101,000 hectares or about 1,000 square kilometers. One might be tempted to observe that that’s a small amount of Thailand’s land area, but it is about the size of the Hong Kong S.A.R.. The family has “a 12,000-rai plot in Cha-am, Phetchaburi province, and a 15,000 rai plot in Bang Ban, Ayutthaya province.”

That beer and whiskey family is followed by the telecoms, shopping mall and hotel-owning tycoons, the Chirathivat family, with 200,000 rai. That family held a prize “10,000-rai plot in Ayutthaya.”

The Crown Property Bureau is said to be fourth, with “just” 30,000 rai. That’s about the same as was reported in 2005. Given that a significant portion of this is in the highest value areas of Bangkok, the returns are pretty chunky.

The report states that there were just “837 individuals and juristic persons [that] had 1,000 rai or more…”. The vast bulk of landowners in Thailand own very small plots. Inequality in incomes is matched by vast inequalities in land ownership.








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