FRIDAY, March 29, 2024
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Yingluck responsible for Bt250 billion in damages in rice pledging scheme: panel

Yingluck responsible for Bt250 billion in damages in rice pledging scheme: panel

A FACT-FINDING panel probing civil liability of the previous government’s rice-pledging programme has held former prime minister Yingluck Shinawatra responsible for an estimated Bt250 billion in damage caused to the state coffers, according to sources at

The ministry’s Comptroller-General’s Department played a key role in probing the civil-liability case against Yingluck. A fact-finding panel was set up by Prime Minister Prayut Chan-o-cha and chaired by Jirachai Moontongroy, deputy permanent secretary to the PM’s Office.
The Jirachai panel’s report indicates that Yingluck was negligent and should be held accountable for significant financial damage even though farmers benefited from the rice-pledging scheme during her tenure.
Jirachai pointed to three major mistakes in the rice-pledging scheme. First, the policy allowed farmers to pledge their rice with no limits on the quantity at a price much higher than being offered by the market. Second, there were fake government-to-government rice deals. Third, the Yingluck government failed to call a halt to the scheme despite repeated warnings from the anti-graft agency.
The report said the previous government spent a total of Bt990 billion on the farmer-subsidy programme until May 2014. After it was found that the state lost a total of Bt510 billion in the scheme, which saw rice purchased from farmers for up to Bt15,000 a tonne, well over the prevailing market price of only Bt9,000 at that time.
The programme was widely popular among farmers, resulting in an expansion of rice-farming areas and output, but the government could only sell a small amount of rice, resulting in heavy losses as well as other costs, including expenses for storage.
Sources said Yingluck in her capacity as prime minister and chairwoman of the National Rice Policy Committee was found to be careless in executing the policy, thus causing damage to the state.
However, the panel said it was unfair to hold her accountable for the entire Bt510 billion in losses since farmers also gained from the huge difference between market and pledging prices.
The report said every government that imposes price-support policies for agricultural products faces losses, so it was necessary to deduct operating costs, interest rates, plus farmers’ benefits.
“In this case, we found that the actual damage caused by negligence is around Bt250 billion,” said a source, adding that the report shows Yingluck did not try adequately to prevent the damage to the state, even though there were written warnings from the National Anti-Corruption Commission, the Office of the Auditor-General, the Finance Ministry and academics while the government was executing the policy.
Meanwhile, Pheu Thai Party’s deputy secretary-general Chavalit Vichayasut said the justice process on the rice-pledging case accusing Yingluck of wrongdoing was not yet complete. So, officials should exercise caution on the latest report concerning civil liability.
The civil-liability case is separate from the criminal case that is still under consideration by the Supreme Court on the criminal offence of political office holders.
Chavalit said there should be neither judgement nor opinion on this case prior to the Supreme Court’s verdict.
Nuttawut Saikuar, a leader of the United Front for Democracy against Dictatorship, which was allied with the Yingluck government, said the rice scheme was implemented in a way that benefited farmers the most in history, so allegations of wrongdoing by the former PM while implementing this policy was doubtful.
He said the Prayut government’s rubber-price scheme was similar and there would be state losses from buying rubber sheets from planters at a price higher than the prevailing market price.
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