Bt2-trillion loan bill does not violate charter : Govt

Deputy Prime Minister Phongthep Thepkanjana said the bill does not violate Article 169 of the Constitution as claimed on Wednesday by the Law Reform Commission of Thailand (LRCT) headed by former attorney-general Kanit na Nakorn.

“The bill does not violate the charter because the loans will not be state funds,” Phongthep said. “Moreover, similar borrowing has been done by several governments – the Bt2-trillion bill will not be the first of its kind.”

On Wednesday, Kanit told a press conference that the bill would definitely violate Article 169, which requires that state funds be disbursed in line with budgetary procedures. He reasoned that the Finance Ministry is a state agency and any loans it obtained should be regarded as state funds.

Kanit also warned that the bill would violate the people’s rights, because parliamentarians, who represent the people, will not be allowed to monitor the spending on the transport-infrastructure projects for seven years.

The bill would empower the Finance Ministry to borrow Bt2 trillion, which would be off the budget, to implement transport infrastructure projects. Phongthep said it was not true that Parliament would not be able to monitor the spending.

“The legislative branch can ask questions or raise recommendations or submit motions to the government to answer. The opposition can even hold a no-confidence debate against the government regarding the spending,” Phongthep said.

The deputy prime minister added that while the bill is being deliberated by the House of Representatives, it will already have been checked by the legislative branch.

“Although the coalition has a majority of MPs, there are also opposition MPs. The bill will also be checked by the Senate, and the government has no senators. So, the bill will be checked before the government will obtain the loans. The legislative branch will still be able to monitor it after the loans have been obtained,” Phongthep said.

The bill has passed its first reading and is being vetted by a special House committee.

Chief coalition whip Udomdet Ratanasathien, a Pheu Thai MP from Nonthaburi, said the opinion of the LRCT would have no impact on the vetting of the bill, which is almost complete. But Udomdet said the government should heed the warning of the commission, which was set up by the government.

“I think the government should ponder and reach a decision on the opinion of the LRCT before the bill is sent back to the House for the second reading in about a month,” Udomdet said.

Sanguan Pongmanee, a Pheu Thai MP from Lamphun, said the panel could only suggest legal reforms; it did not have the authority to change or improve the laws, which rested with Parliament.

While the LRCT was within its rights to comment on the constitutionality of the Bt2-trillion bill, it had no place evaluating whether the investments were worthwhile, the MP said.

Meanwhile, the so-called Group of 40 senators threatened to submit a petition to the Constitutional Court against the government if the Bt2-trillion bill clears Parliament.

“We believe the issue of the loans will become a cause that will topple the government. We believe the government cannot survive past April 2014,” said Prasarn Maruekapitak, one of the 40 anti-government senators.