Rice-pledging: 'Huge loss' on the cards

[Mod]

Rice-pledging: 'Huge loss' on the cards

Petchanet Pratruangkrai
The Nation

At least Bt1.3 billion could be lost to corruption under the government's rice-pledging project, with warehouses alleging that officials have insisted on under-the-table money for allowing them to join the scheme.

A source from a warehouse operator taking part in the programme said each warehouse would have to pay Bt2 per 100-kilogram bag of rice to officials in exchange for joining the project.

"Officials from the Public Warehouses Organisation [PWO], which is responsible for rice stockpiles, have asked for 'tea money'. If we [warehouses] don't pay them, we will not be allowed to store the government's rice stockpile," said the source, who asked not to be named.

Under the scheme, warehouse operators will enjoy a monthly service fee for rice maintenance at Bt15 per 100kg bag.

The source said warehouses, particularly small and medium-sized operators, had no choice but to accept such a corrupt practice if they wanted to participate in the programme.

If they refused to pay the bribe, they would lose out as most rice farmers want to take part in the government's pledging project, which has set a high guarantee price to Bt15,000 per tonne for white rice, and Bt20,000 for jasmine rice.

Stockpiles

Under the plan, about 10 million tonnes of paddy rice are expected to go into the government's stockpiles. After polishing, this amount would produce about 6.6 million tonnes of rice.

If warehouses have to hand over Bt2 per 100kg bag, about Bt1.3 billion would go to corrupt officials.

To ensure transparency in the rice-pledging project, the source called for Deputy Prime Minister and Commerce Minister Kittiratt Na-Ranong to urgently inspect the work of the PWO and other related agencies, as there were "giant loopholes" in the scheme.

Although the government has a subcommittee to inspect and monitor rice pledging, the panel has to date only called for a meeting at its office, and there has been no inspection of the pledging areas.

Meanwhile, Deputy Commerce Minister Poom Sarapol, who is responsible for the rice-pledging scheme, yesterday refused to comment directly on the corruption rumour.

To ensure transparency in the pledging project, Poom has however set up three inspection subcommittees to investigate the matter.

Poom said that if any officials were found guilty of corruption, they would be subject to punishment under the law as well as disciplinary action.


-- The Nation 2011-11-16