Graft: The parasite that threatens to bleed us dry

Although the government has repeatedly declared its commitment to combating corruption, a recent survey found that businesses still need to additionally spend an average of 30-35 per cent of a project’s costs to win a government contract.

The findings of the survey – by the University of the Thai Chamber of Commerce (UTTC) and the Anti-Corruption Network – are unfortunate because they show that the public is being forced to bear the cost of the corruption. The extra margin of 30-35 per cent that firms need to pay to win contracts will eventually be passed on to consumers via higher prices.

Although all sides insist they are trying to fight corruption, this crime still plagues Thai society. Based on the survey’s findings, corruption this year will cost the government Bt252 billion to Bt294 billion of its Bt840-billion budget, amounting to 2.18-2.54 per cent of gross domestic product.

The results of the survey hardly come as a surprise. Corruption scandals make the headlines on an almost daily basis. 

In addition, questions have been raised in regard to several areas of public spending. Who, for example, are the real beneficiaries of the government’s farm-subsidy programmes? Why the abrupt change of contractors for the government’s infrastructure projects? And what role does bribing police play in the operation of underground gambling dens? 

A recently released report from the US State Department cited corruption as one of the factors fuelling human trafficking in Thailand. The widespread use of illegal drugs here is also aided by the laxity of law enforcement officers, for whatever reasons. 

In fact, corruption is the root of virtually all obstacles that hinder the country’s development. Graft obstructs competitiveness by replacing merit as the determinant factor in business success. 

The private sector has taken the initiative in the battle against corruption but, despite efforts to raise public awareness, corruption still thrives. This points to a deep-rooted unwillingness on the part of its beneficiaries to change this wrongful behaviour. 

The survey suggests the situation is getting worse. In the last such survey, in December, only 30.6 per cent said they had to pay more than 25 per cent of project costs in “tea money”. And according to UTCC statistics for 1999, only 11-15 per cent was paid “under the table”.

The trend could soon worsen as the government prepares to roll out multibillion-baht projects in post-flood rehabilitation. Also in the pipeline are the many mega-projects whose contracts will be open to bidding before the end of this year. Without proper scrutiny, taxpayers’ money in the billions will disappear into the pockets of unscrupulous individuals.

Widespread graft chokes the business environment and erodes Thailand’s competitiveness. The advent of the Asean Economic Community in 2015 will open up the battlefield to the best performers. If the Thai business environment is still riddled with underhand practices, local industries and consumers will find themselves at a disadvantage to neighbours such as Singapore, who are striving to become corruption-free. 

Meanwhile Thai politicians indulge in the irony of seeking system change to achieve what they claim to be full democracy, while at the same time turning a blind eye to graft – a root cause of the inequality of opportunity within our society.

Let’s hope the figures for “tea money” fall in the next survey. Otherwise, fatigue in the battle against corruption could set in, along with distrust of government officials and politicians.