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Phuket's future would be brighter without corruption, say business leaders

Phuket Rip-Off Reforms: Business v Corruption

Thursday, June 2, 2011
PHUKET: USING Phuket as the role-model for wiping out corruption in Thailand was welcomed yesterday by the man leading the push to make Phuket honest and transparent.

Pranai Suwanrath, Deputy Permanent Secretary of the Interior Ministry, gave the idea his support as more than 20 business associations in Bangkok called for change at a seminar entitled Against Corruption: Turning Point in Thailand.

The private organisations announced a concerted pre-election drive to force political parties to treat corruption more seriously, warning that if necessary, they would take matters into their own hands.

Khun Pranai also had constructive thoughts. ''A Phuket model for getting rid of corruption would be good because Phuket is an international destination and very popular,'' he said.

''If people could see that one part of Thailand could do it, the image of Thailand would be improved. If the idea succeeded, it could be adapted and used in all provinces.''

Khun Pranai is video-conferencing regularly with Phuket Governor Tri Augkaradacha and Phuket's vice governors in seeking to spark a ''rip-off revolution'' and restore the reputation of the troubled tropical holiday island.

But he says that while the island's senior administrators are part of the Interior Ministry, other departments will need to join and act to defeat corruption.

''The message has to be 'Do Your Job,''' he said. ''The heads of the TAT, the Royal Thai Police, Immigration, the Marine Office - all department chiefs in Bangkok - need to be telling their officials in Phuket: Do Your Job.

''Only with co-operation across all branches of government in Bangkok will change be able to come in Phuket.''

His comments echo repeated calls for a crackdown by Phuket's honorary consuls. As a group they have urged ambassadors in Bangkok to press for reforms on troubled Phuket, where extortionate tuk-tuk and taxi fares, jet-ski scams, environmental degradation and institutionalised graft remain widespread.

A new source for the growing concern about corruption emerged yesterday as business leaders in Bangkok discussed the big issue at the Turning Point in Thailand seminar.

Dusit Nontanakorn, chairman of the Thai Chamber of Commerce and the Board of Trade, said the anti-corruption coalition marked the first move by the Thai private sector to jointly fight the scourge of graft.

While the concern of business is that corruption is undermining the country's competitiveness - especially in tourism - other campaigners have made the point that the money that now goes in graft could be diverted to benefit education and health and alleviate poverty.

A survey found the total value of corruption in state projects in Thailand for the last fiscal year came to between 169 billion and 203 billion baht.

''We have to get started instead of doing nothing and letting corruption grow like a cancer that will eventually kill the country," Khun Dusit told the innovative business consortium.

Caretaker Prime Minister Abhisit Vejjajiva was at the gathering and gave the anti-corruption moves his tacit support. Phuketwan has previously called on the PM to put the Phuket anti-corruption role-model idea into action.

Khun Pranai now heads a continuing series of meetings of senior administrators from all Thai holiday destinations at the behest of Deputy PM Suthep Thaugsuban.

Phuket is seen as the destination most urgently in need of reform.

''There is no reason why corruption cannot be wiped out if people are willing to beat it,'' Khun Pranai said. ''Efforts to win reform won't happen overnight. It has to be worked at every day.

''My feeling is that Phuket people have the will to solve the problem. They don't want to have this rip-off reputation continue. Anti-corruption needs to be promoted non-stop until these things change.''

An extensive inquiry into corruption on Phuket has also been conducted recently by the Public Sector Anti-Corruption Commission, interviewing leading figures on Phuket over two weeks. That investigation is expected to result in prosecutions.
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Comments

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With money in Phuket and Thailand at large, you can get all the official documents you need from a certain type of civil servant through the help of equally unethical lawyers or accounting offices. Read in 'The Nation' newspaper the story 'Culture of bribery pulls the country down: PM'.

Posted by Whistle-Blower on June 2, 2011 12:21

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Wise words, but you only need to investigate the asset holdings and bank accounts of officials to determine the individuals level of graft and how many administrators here in Phuket are on the take?

Removing corruption from a corrupt society that accepts it as part of daily life is not going to be easy but with this report it does appear, on face value, that the Thai authorities realize the damage done to the country due to corruption.

The real question here is ... what will happen if we see a change of Government? Thaksin has already be found guilty of corruption and it's likely he's on his way back to take over if his sister wins the election... what then?

I really do hope we are seeing the tides of change but with most things here it will take a lot more than mere words.

Posted by Graham on June 2, 2011 15:00

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@While the concern of business is that corruption is undermining the country's competitiveness; especially in tourism.
Many foreigners are setting-up Thai companies with proxy Thai staff, Thai Directors and Thai shareholders to flout the law with the help of greedy lawyers or Accounting Offices.
With that corrupted system and with less than 30,000 Baht any foreigner can have a registered company and get a work-permit at the expense of legitimate Thai companies.
It is time to Thai people to wake-up before it is too late.

Posted by Whistle-Blower on June 2, 2011 17:39

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WB are you saying that even with the deck stacked in their favor, Thai companies are unable to compete and removing foreign owned companies is the answer ???

Posted by Soupdragon on June 3, 2011 10:52

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I never say that I am against foreigners working in Thailand, but I am definitely against foreigners setting-up companies through illegitimate means by bribing officials with the help of rogue lawyers and accounting offices in order to have proxy nominees as Thai shareholders, Thai directors and Thai staff to look legitimate.

Thai owned companies can provide work-permits to those foreigners by legal means.
Many foreigners in Phuket, Phang Nga and Krabi Provinces as other parts of Thailand are running websites which are officially owned by companies located in foreign countries (Hong-Kong, Singapore, etc...), with foreign bank accounts in those countries to avoid to pay taxes in Thailand but foreigners running that businesses are living in Thailand in secluded houses and each partners make their own companies to get valid work-permits.

Some of companies like that has dozens of foreigners working day and nights.

All money is paid on oversea account through bank-transfers or PayPal and only a fraction of that money is coming in Thailand for monthly expenses.

Posted by Whistle-Blower on June 3, 2011 11:36

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I don't know WB. You should be directing your complaints towards the locals who seem to want do anything for a bit of baht. Get on a campaign to seriously penalize Thai people for assisting in setting up bogus companies in order for foreigners to obtain work permits. But that can't happen, can it. People love the baht and baht seems to be the #1 determiner of status.

Thailand seems to attract a share of corrupt people because corruption seems to be a way of life. Need something done that is not entirely legal? No problem, just grease the appropriate palms and all is right. That is the problem, not the foreigners walking in the steps of Thai people, but the Thai people who made the footprints. You want to decrease the number of foreigners getting those shady work permits? Reform Thai society to look at corruption as something abhorrent with real penalties for breaking the law and the number of people with those work permits will decrease. Easy, right?

Posted by Anonymous on June 4, 2011 13:14

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@ anonymous
I agree with you; then Lawyers and accounting offices should be the first to be under control by government agencies as it is through their offices foreigners are able to grease local officials to set-up companies and work-permits.

Posted by Whistle-Blower on June 4, 2011 13:45

Editor Comment:

Are those law firms run by expats or Thais?

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@Editor Comment: Are those law firms run by expats or Thais?
Law & Acccounting Offices are run by Thais but a lot of expats work as touts for these companies for favours.
There are few foreign lawyers supplying their services or are partners with Thai lawyers as the job of lawyers and accounting are reserved to Thai people by the law.

Posted by Whistle-Blower on June 5, 2011 10:22


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