Wednesday, December 16, 2009

Hawaii's Proactive Budget Management Techniques And Healthy Reserves Support Its 'AA' GO Rating, S&P Report Says

Hawaii's 'AA' general obligation (GO) bond rating reflects our view of management's well-established budget monitoring practices and strong reserve levels, according to a report published today by Standard & Poor's Ratings Services.


"We believe that Hawaii's proactive budget management techniques will result in manageable out-year gaps that state officials will successfully resolve without a significant impact to reserve designations," said Standard & Poor's credit analyst Paul Dyson. "Moreover, in our opinion, the state's level of reserves provides us with credit comfort at the current rating level."

Fiscal 2008 combined reserves, including carry-over and various funds, totaled $590 million, or 11% of expenditures; according to state estimates, combined reserves will decline to $208 million, or 3.9% of expenditures, in fiscal 2009, below the $253 million, or 4.9% of expenditures, forecasted in May 2009. Officials believe various corrective actions including expenditure cuts and revenue enhancements for fiscals 2010 and 2011 should produce ending combined reserve balances closer to 5%-6% of expenditures; however, without such measures, combined reserves could fall to 2%-3% during fiscals 2010 and 2011, and negative by fiscal 2012.

The state constitution requires that the governor and legislature begin to provide tax refunds or credits if the general fund balance exceeds 5% of expenditures for two consecutive years; however, it does not require that refunds or credits immediately lower fund balances to the 5% target, permitting the legislature to retain balances above these levels in recent years. The legislature has faced the situation in the past several fiscal years, which has led to increased appropriation of existing carry-over fund balances for one-time and recurring use. We believe the likely result will be a decrease in the current budgeted and GAAP general fund balance relative to fiscals 2006 through 2008, with an increase most likely dependent on a faster or more robust economic recovery. In our opinion, further significant expenditure reductions will be difficult, but we also recognize that the state and governor have been willing to make them in the past.

After sustained economic expansion between 2003 and 2007, when many sectors performed at record levels, Hawaii's (population 1.3 million) economic trends decelerated and, in many cases, turned negative in 2008 and 2009. However, unlike many markets, the Hawaii housing market experienced only a moderate housing decline: Median home prices as of July 2009 were down just 10% from 2006 levels and only 2.3% of loans went into foreclosure over the last 18 months, ranking it eighth best in the nation. Hawaii's nominal personal income is more stable, and actually increased more than the U.S.' in both 2008 and the first quarter of 2009. The state's median household income was what we consider a strong 121% of the national average as of 2008.

The report is available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to research_request@standardandpoors.com. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.

Saturday, November 21, 2009

Mahathir (Part 1)

Discover the life of Mahathir Mohamad, one of Southeast Asia’s most outspoken and controversial leaders. As Prime Minister for 22 years, he modernises Malaysia. The world’s tallest twin towers is one of his projects.

Part 1 explores Mahathir’s early years, from the Second World War and his life under Japanese occupation, to his emerging political activism protesting British colonialism. We look at his medical school days, where Mahathir meets the woman of his dreams, and his days in private practice in a small rural town.

In 1964, Mahathir is first elected to Parliament, and quickly earns a reputation as an exceptional debater and fierce advocate of Malay rights. However, his meteoric political rise is abruptly cut short in 1969 when he loses his seat and writes a letter that expels him from his political party UMNO. Eventually, Mahathir eventually makes a comeback and later becomes Malaysia’s fourth Prime Minister.

Wednesday, November 11, 2009

IT'S TIME TO TURN ON OTHER GROWTH ENGINES

       Surprisingly, after the Congress accepted the bill, the price of shares started to fall at a greater pace everyday instead of recovering as happened on September 19, the day the Paulson proposal was announced. Why? Because, it was about confidence, which is always sensitive with any change, even a minute one. On September 19, the firm announcement by Paulson and the very strong support of President Bush created confidence that this proposal would be approved swiftly, the size of the bail-out fund would be big enough, and it would be implemented with enough flexibility as proposed by Paulson. It was the size of the fund, the potential speed of approval and the flexibility in its implementation that convinced the public that distressed assets would be taken out of the financial institutions promptly and their financial positions would strengthen soon, ending up in a massive purchase of shares of financial institutions, which brought up their prices. But after over one week, the Congress rejected the bill, confidence shattered a bit even though it was finally approved after two weeks, because during this period of time, financial institutions in the US that needed help from this bail-out plan got weaker very fast, making investors speculate that the size of distressed assets to be tackled would be bigger than the bail-out fund.
       Besides, some financial institutions in Europe collapsed and needed to be taken over by another financial institution. Worse is that the Congress set conditions limiting the utilisation of the bail-out fund into phases, allowing only US$250 billion in the first tranche. This condition had a negative impact psychologically. The limited amount of the first tranche would speed up sale of distressed assets as sellers are not fully confident about the availability of the next tranche. Should the total US$700 billion be allowed to be implemented freely, financial institutions would not rush to sell as they would feel that the whole amount is still available, which would not put too much pressure on the price of distressed assets.
       Moreover, the recent behaviour of the Congress indicated to the public that if this $700-billion fund were not enough, there would be no hope for additional amount. This created fear that the amount of distressed assets beyond $700 billion would be left to undermine the strength of certain financial institutions. Besides, the Congress did set some conditions in the implementation of the fund, which makes it less flexible and thus creates fear that certain distressed assets may not be accepted by the buyer and the implementation may not be fast enough to save the financial institutions. Consequently, the perception of the plan as approved by the Congress is much different from that announced by Paulson on September 19. With the plan as approved, the public believed that financial institutions without excessive distressed assets could manage to sell them down and survive smoothly, but those with too much distressed assets may have to increase capital to compensate for some additional losses. Definitely, the plan as approved could not create confidence that all distressed assets would be taken out and that all financial institutions would recover to perform their normal duty of extending credit to the private sector soon.
       It could be said that even if this bail-out plan as approved by the Congress could limit the damage of the financial institutions, it would not strengthen all financial institutions enough to support the recovery of real sector for another long while. At the same time, the major increase of oil price in the first half of the year still has a second round effect on inflation in the second half and thereby slows down private expenditure. Moreover, higher unemployment, caused by the slump of housing construction and by the rationalisation of work process of various industries to reduce cost, has affected private consumption. The reduced consumption leads to the reduction of sale and production. The prices of shares in the real sector are inevitably decreasing.
       Unfortunate developments in the US have affected the whole world, in the financial sector as well as the stock exchange and international trade. The bail-out plan approved did save the financial institutions from weakening further and prevented contagion into other countries, especially those in Asia where investments in US mortgage-backed securities were very limited. But the effect on the stock exchange is inevitable since foreign investing institutions had to sell down their investments overseas to bring money back to support the liquidity and financial strength of their parent companies in the US and Europe. Besides, the reduction of spending by buyers in the US, in Europe (which experience similar consequences from sizeable investment in mortgage-backed securities and big surge in oil price) and in Japan (which has been affected by big surge in oil price and inflation) will definitely reduce exports of various countries in Asia, including Thailand. We have to be prepared for the slowdown of export and must try to speed up other growth engines instead, be it government investment, private investment, or domestic consumption. Leadership and efforts of the government in the right direction are now very much needed.

Magnificent seven

       In the most important, most revered event since the invention of the brontosaurus trap,Microsoft shipped the most incredibly fabulous operating system ever made; the release of Windows 7 also spurred a new generation of personal computers of all sizes at prices well below last month's offers.The top reason Windows 7 does not suck: There is no registered website called Windows7Sucks.com
       Kindle e-book reader maker Amazon.com and new Nook e-book reader vendor Barnes and Noble got it on; B&N got great reviews for the "Kindle killer"Nook, with dual screens and touch controls so you can "turn" pages, plays MP3s and allows many non-B&N book formats, although not the Kindle one;Amazon then killed the US version of its Kindle in favour of the international one, reduced its price to $260(8,700 baht), same as the Nook; it's not yet clear what you can get in Thailand with a Nook, but you sure can't (yet) get much, relatively speaking, with a Kindle;but here's the biggest difference so far,which Amazon.com has ignored: the Nook lets you lend e-books to any other Nook owner, just as if they were paper books; the borrowed books expire on the borrower's Nook in two weeks.
       Phone maker Nokia of Finland announced it is suing iPhone maker Apple of America for being a copycat; lawyers said they figure Nokia can get at least one, probably two per cent (retail) for every iPhone sold by Steve "President for Life" Jobs and crew via the lawsuit,which sure beats working for it -$6 (200 baht) to $12(400 baht) on 30 million phones sold so far, works out to $400 million or 25 percent of the whole Apple empire profits during the last quarter;there were 10 patent thefts, the Finnish executives said, on everything from moving data to security and encryption.
       Nokia of Finland announced that it is one month behind on shipping its new flagship N900 phone, the first to run on Linux software; delay of the $750(25,000 baht) phone had absolutely no part in making Nokia so short that it had to sue Apple, slap yourself for such a thought.
       Tim Berners-Lee, who created the World Wide Web, said he had one regret:the double slash that follows the "http:"in standard web addresses; he estimated that 14.2 gazillion users have wasted 48.72 bazillion hours typing those two keystrokes, and he's sorry; of course there's no reason to ever type that, since your browser does it for you when you type "www.bangkokpost.com" but Tim needs to admit he made one error in his lifetime.
       The International Telecommunication Union of the United Nations, which doesn't sell any phones or services, announced that there should be a mobile phone charger that will work with any phone; now who would ever have thought of that, without a UN body to wind up a major study on the subject?;the GSM Association estimates that 51,000 tonnes of chargers are made each year in order to keep companies able to have their own unique ones.
       The Well, Doh Award of the Week was presented at arm's length to the United Nations Conference on Trade and Development; the group's deputy secretary-general Petko Draganov said that developing countries will miss some of the stuff available on the Internet if they don't install more broadband infrastructure; a report that used your tax baht to compile said that quite a few people use mobile phones but companies are more likely to invest in countries with excellent broadband connections; no one ever had thought of this before, right?
       Sun Microsystems , as a result of the Oracle takeover, said it will allow 3,000 current workers never to bother coming to work again; Sun referred to the losses as "jobs," not people; now the fourth largest server maker in the world, Sun said it lost $2.2 billion in its last fiscal year; European regulators are holding up approval of the Oracle purchase in the hope of getting some money in exchange for not involving Oracle in court cases.
       The multi-gazillionaire and very annoying investor Carl Icahn resigned from the board at Yahoo ; he spun it as a vote of confidence, saying current directors are taking the formerly threatened company seriously; Yahoo reported increased profits but smaller revenues in the third quarter.
       The US House of Representatives voted to censure Vietnam for jailing bloggers; the non-binding resolution sponsored by southern California congresswoman Loretta Sanchez said the Internet is "a crucial tool for the citizens of Vietnam to be able to exercise their freedom of expression and association;"Hanoi has recently jailed at least nine activists for up to six years apiece for holding pro-democracy banners. Iran jailed blogger Hossein "Hoder" Derakshan for 10 months - in solitary confinement.

Wednesday, October 21, 2009

DEMOCRATS HAVE SECOND THOUGHTS ON CHARTER CHANGE

       The Democrat Party will review its stance over amending the Constitution after the move met with resistance from some lawmakers who threatened to launch impeachment proceedings against those who initiate alterations to the charter.
       Democrat Party spokesman Thepthai Senpong said the party has a clear stance to amend the charter on provisions resolved by the Reconciliation committee for Constitution Amendment and joint committees of whips. The party will also push for a public referendum. It will follow the wishes of the people in the matter.
       He also denied that the party had resolved to let members vote freely whether to amend the Constitution. The party will call a meeting tomorrow to decide the details of the Constitution amendment.
       Suphan Buri Senator Prasit Phothasuthon, who has been campaigning for charter amendment, said he had a list of 30-40 senators who support the amendment and he would submit the petition to House Speaker Chai Chidchob next week. He said his group supported the move to amend six articles of the Constitution in one draft but if the public referendum showed opposition to the move, they would drop the petition.
       New Politics Party spokesman Samran Rodpet said the party believed the crisis facing the country could not be healed by amending six articles of the Constitution because the political divisions facing the country ran deep at grass root and the country's high institutions. If the Constitution is finally amended, the country will see even greater division. Rival political parties also play politics by seeking political advantage from the move rather than thinking of public interest. The party will team up with the People's Alliance for Democracy to oppose any constitutional amendment.
       Secretary-general of the New Politics Party, Suriyasai Katasila, said the Democrat Party has not had a clear stance over the amendment. Prime Minister Abhisit Vejjajiva first had high ambitions on the issue, wanting to have a Constitution Drafting Assembly but then settled for a charter amendment committee and now public referendum. At the same time the Pheu Thai Party had a clear stance about wanting the reinstatement of the 1997 Constitution, which is impossible unless the party successfully called for a military coup to do that.
       "If the government adamantly pushes for charter amendment, we will seek impeachment proceedings against MPs and those involved or call for public rallies against the move,'' Suriyasai said.

Saturday, October 17, 2009

Amendment motion likely

       Senators and MPs plan to file a motion next week seeking the amendment of the 2007 constitution without waiting for the findings of parliamentary whips looking into the issue.
       Suphan Buri senator Prasit Phothasuthon said senators and MPs who earlier signed a petition supporting the parliamentary reconciliation committee's recommendation to amend six points of the constitution will sponsor the motion.
       The group decided to file the motion because it believed the government was insincere in its efforts to amend the charter and seek political reconciliation,Mr Prasit said yesterday.
       Prime Minister Abhisit Vejjajiva's professed support for the constitutional amendments was aimed simply at buying time so his government could stay in power, he added. Mr Prasit said his group would gather signatures supporting the motion from at least 125 senators and MPs, or one-fifth of the members of the two houses. Senate whip Lertrat Rattanawanich said Mr Prasit's group had the right to file the motion independently.
       The opposition Puea Thai Party's whip has already withdrawn from the committee made up of government, opposition and senate whips which had agreed to support the amendments.
       It will be difficult for the government and senate whips to proceed with the amendment bid without the opposition's participation.
       Deputy Prime Minister Suthep Thaugsuban yesterday said the government would ask voters if they wanted the 2007 constitution to be amended.
       The question of amendment did not rest with politicians alone, he said. The people's views should also be heard.
       The Democrat Party's position on the amendments is in doubt however, after about 100 party MPs yesterday joined deputy leader Banyat Bantadtan in opposing the amendments. Members were free to voice opinions, said Mr Suthep, the Democrat secretary-general.

Wednesday, October 14, 2009

Senate speaker pushes changes

       Senate Speaker Prasopsuk Boondej has urged the government to continue to take a leading role in maintaining the momentum for constitutional changes.
       He said amending the constitution could not go ahead if the government did not play a central role in it.
       The call was made in response to a hint by Prime Minister Abhisit Vejjajiva that he might stop the amendments if enough parties disagreed with them.
       Mr Prasopsuk said he believed there was still time for the coalition parties to talk through their differences on the issue and reach an agreement.
       He admitted former prime minister Thaksin Shinawatra's call for the 1997 constitution to be revived had influenced the opposition party into withdrawing its support for the charter rewrite.
       The opposition Puea Thai Party's position remains unclear. Opposition chief whip Witthaya Buranasiri last week said he supported constitutional amendments.But Puea Thai MP Chalerm Yubamrung earlier said most of the opposition MPs did not support the changes.
       The prime minister yesterday called on the opposition to confirm whether it would honour the agreement with the government and the Senate to work out national reconciliation through constitutional amendment.
       Mr Witthaya said he was ready to resign as opposition chief whip if his action involving the charter rewrite had hampered the management of the party.
       However, Puea Thai members could settle their own differences on the issue among themselves and those with differing views should not stall the amendments, Mr Witthaya said.
       Puea Thai leader Yongyuth Wichaidit said he had received a resignation letter from Chalerm Yubamrung who had asked to step down as Puea Thai's chief of MPs over a rift within the party over the amendments issue.
       Mr Yongyuth said he did not approve the resignation.
       Government chief whip Chinnaworn Bunyakiat said the amendments will go ahead.
       He said Mr Abhisit had written to ask House Speaker Chai Chidchob to order the legal affairs bureaus of the Senate and the House of Representatives to draw up an amendment draft based on the six changes proposed by a parliamentary committee on national reconciliation and constitutional amendment.
       The amendment draft is expected to be tabled at a meeting of the government,opposition and senate whips on Oct 22.

Sunday, October 11, 2009

Chai faces protesters' wrath

       The red shirts in Ang Thong yesterday burned the effigy of House Speaker Chai Chidchob as he came to the province to perform his parliamentary duty.
       Chai came for a meeting to promote democracy with over 1,000 local leaders at Ang Thong Provincial Hall when about 80 red shirts gathered outside the hall, holding placards with messages attacking Chai and his son Newin Chidchob, accusing them of being ungrateful to former PM Thakin Shinawatra.
       As they tried to enter the provincial hall, they were blocked by 300 police guarding all entrances to the premise. There was a small clash as they tried to break through the police blockades. They later burnt Chai's effigy.

Wednesday, September 23, 2009

Prasopsuk backs PM on charter

       Senate Speaker Prasopsuk Boondej has voiced support for Prime Minister Abhisit Vejjajiva's suggestion for former constitution drafters and academics to be recruited to vet the proposed six-point rewrite of the charter.
       Mr Prasopsuk said the participation of the former members of two constitution drafting assemblies would ensure public input in the charter rewrite process.
       He said the charter amendments could be completed within a few months if the government was serious about it.
       A special parliamentary meeting could then be convened to screen the amendments when the House goes into recess in November, he said.
       However, the speaker said it would be time-consuming if the amended constitution was put up for a referendum.There is no law governing a referendum on a new charter.
       He said legislation could be sped up and completed within two months if the public wanted a referendum.
       On Sunday, Mr Abhisit floated the idea of forming a fresh constitution drafting assembly to handle changes to the charter and the holding of a referendum.
       He said the assembly should be made up of members of parliament, those who drew up the 1997 and present 2007 constitutions, scholars and experts.
       Government chief whip Chinnaworn Boonyakiat said the government whips would discuss charter amendments with the opposition and the senate whips tomorrow to reach an agreement before Mr Abhisit's return from overseas.
       He said the charter rewrite should not take more than six months.
       But Puea Thai Party MP Surapong Towihcakchaikul yesterday shot down the prime minister's proposed new charter drafting assembly suggestion.
       He said the party would support only the six points offered by the charter reform and national reconciliation committee.

Govt at odds with Senate over loan bill

       A legal battle is brewing between the two houses of parliament that could hold up the government's efforts to borrow 400 billion baht to pay for its economic stimulus schemes.
       The Senate has demanded that it be allowed to scrutinise a bill on the loans,but the government insists the Senate only has to be informed about the bill.
       A majority of senators yesterday voted to support a special committee's recommendation that the Senate be allowed to vet the bill.
       The government wanted the Senate to be informed about the bill but did not ask for it to be vetted.
       The Senate plans to ask the Constitution Court to rule on whether the bill would be constitutional if the government does not give it to the upper house for scrutiny or to change some details.
       Finance Minister Korn Chatikavanij yesterday said the government had consulted the Council of State as to whether the Senate could vet the bill and make changes. The council ruled the Senate could not do so because it would be a violation of Article 171 of the constitution.
       If the Senate insisted on approaching the Constitution Court, the government would lodge its own complaint with the court against the authority of the Senate,Mr Korn said.
       If the Constitution Court blocks parliament's approval of the bill, the government will be unable to access the 400 billion baht in loans that it needs to stimulate the economy.
       Mr Korn said the government really needed the bill to be passed into law to provide funding for the "Thailand: Investing from Strength to Strength" stimulus scheme and for investment in the private sector.
       He insisted the government would spend the 400 billion baht with transparency and in the best interest of the public. He expected the funds to be disbursed early next year.

Senate scrutiny for stimulus plan

       The Senate yesterday voted to insert a key clause requiring parliamentary scrutiny of the government's plan to spend Bt400 billion to revitalise the economy.
       The vote is seen as a snub to the government, which wants to treat the package as an off-the-budget measure to avoid scrutiny by citing an urgency to fight the economic downturn.
       Finance Minister Korn Chatikavanij returned from London early to defend authorising the public debt, but failed to convince the upper chamber to approve the House-version of the bill allowing the spending to proceed without scrutiny.
       "The government has deemed it necessary to quickly inject funds into the economy, hence the reason to cut short the parliamentary vetting process to just an acknowledgement of the spendings," he said.
       Korn later added that after consulting legal authorities, including the Council of State, he found out that it was legal, constitutional and appropriate to exclude the vetting for off-the-budget spendings.
       Since the funds were not part of the national budget, the legislative meddling might be construed as unconstitutional because it transgresses on executive power, he warned, prompting fiery protests from several Senators.
       Senator Kamnoon Sithisaman said he was preparing to seek a Constitution Court review on the leeway to authorise spending plans without parliamentary scrutiny.
       Kamnoon's colleagues, including Manoch Kraiwong and Tuang Antachai, said the Senate would not bow to pressure from the finance minister.
       Though Korn apologised for his remarks about transgression on executive power, the upper chamber insisted on its version of the bill by the majority of 51-to-34 votes.
       The Senate meeting last night approved the third reading of bill by a majority of 76-to-6 votes.

Monday, September 21, 2009

Senators want independent panel to vet amendments

       A group of senators is calling on Prime Minister Abhisit Vejjajiva to set up an independent committee to vet issues slated for constitutional amendment which could have far-reaching political implications.
       Their call for a 40-member independent panel made up of people from different sectors of society came yesterday as the joint sitting of the House of Representatives and Senate wrapped up its debate on the proposed six-point charter amendment.
       The proposed amendments deal with the selection of MPs and senators, a requirement for parliament to approve international contracts, the dissolution of political parties, and MPs' intervention in the administration and budgeting of government projects.
       Critics see the proposed changes as an attempt by politicians to change the rules to serve their own purposes.
       The government whip is also considering an idea to form a new constitution drafting assembly to take charge of the charter rewrite after the joint sitting ended.
       Senator Paiboon Nititawam said the six-point proposal by the joint committee on national reconciliation and consti-tutional amendments needed a review because it lacked public input.
       He suggested the prime minister appoint a 40-member panel to study the six-point proposal and find out what else should be amended. Their conclusion should go before a hearing.
       Mr Paiboon said the proposed independent committee was not the same as a new constitution drafting assembly,and the prime minister should consider his group's idea as an alternative.
       However, Mr Paiboon said he was also keen on the idea to have a fresh assembly to rewrite the charter but noted that all proposed amendments should be put to a referendum.
       Opposition MPs yesterday poured scorn on the government whip's suggestion that a new assembly be formed.
       Puea Thai Party MP for Chiang Mai Surapong Towijakchaikul said the proposal was just a government attempt to buy time and prolong its stay in power.
       Opposition chief whip Witthaya Buranasiri also disagreed with the proposal, saying amending the charter was part of the work of MPs and senators."What are we doing here if we don't do the job?" Mr Witthaya asked.
       "The people have elected us. Why shouldn't we use the mandate?"

Friday, September 18, 2009

"Self-serving" charter changes draw fire

       The joint sitting of parliament on proposed charter amendments has begun on an acrimonious note with politicians accused of trying to change the rules to serve their own purposes.
       Senator Rosana Tositrakul yesterday told the session the constitutional changes proposed by the Senate-House joint committee on national reconciliation and constitutional amendments were intended only to protect the interests of politicians in power.
       "The proposed amendments to six points of the constitution have resulted from politicians being intent on solving their own problems," the senator said.
       "This constitution offers the public considerable rights and liberties but there are still very many problems in enforcement. I don't see any representatives or the government trying to solve the problems to really provide the public with the constitutional rights they deserve."
       Mrs Rosana said politicians were unlikely to push for solutions that might threaten their own or their cronies'interests.
       The joint sitting came about after Prime Minister Abhisit Vejjajiva requested a debate on constitutional amendment proposals without a vote.
       The changes being proposed would affect the selection of MPs and senators,the requirement for parliament to approve international contracts, the dissolution of political partes, and MPs'intervention in the administration and budgeting of government projects.
       Democrat Party MP Niphon Wisityuthasart said he disagreed with the return to a single-constituency election system because it would encourage more vote buying.
       Opposition Puea Thai Party MP Thitima Chaisaeng called for the amendment of Article 237 which she said made the disbanding of parties for minor offences too easy.
       Puea Thai MP Chaiya Promma said the government should drop plans to set up a constitution drafting assembly to consider charter changes, which were just a bid to buy time.
       The joint houses debate ends today.
       The public is split on whether to modify the constitution, according to a national survey conducted by a US think-tank.
       Only a third of the 1,500 people interviewed by Asia Foundation in June and July in 26 provinces said they were confident the country was moving in the right direction, according to Tim Meisburger, the foundation's director of elections and political processes.
       Reasons for the generally pessimistic view included the economic slump and continuing political conflicts.
       It is Asia Foundation's first national survey of Thai voters conducted through face-to-face interviews with a random representative sample from all regions except the deep South.
       A survey in the South would be conducted later this year, he said.
       The survey also revealed the public was evenly split between those who believed charter change would reduce conflicts in the country and those who thought it might exacerbate them.
       The survey also revealed support for changes through a participatory process and for the amendments to be put to a national referendum.

Tuesday, September 15, 2009

Abhisit comes under attack over PTT energy project

       Senator Ruengkrai Leekitwattana has asked the Election Commission to investigate possible constitutional violations by the prime minister for seeking cabinet endorsement for a planned PTT Plc investment in an energy substitution programme.
       The senator believes Abhisit Vejjajiva's direction and the cabinet's endorsement of the 113.8 billion baht investment on May 6,2009, is in breach of Articles 266 and 268 of the constitution.
       The articles prohibit the prime minister and the cabinet from interfering in the operations of a state enterprise or an enterprise in which the state has a major shareholding.
       The investment comes under the government's second economic stimulus package.
       Mr Ruengkrai said although the Administrative Court ruled on Dec 14,2007,that PTT Plc was no longer a state com-pany, but a private organisation under the public company law, the Finance Ministry still held more than 50% of the company's shares.
       Cabinet approval for PTT to invest more than 100 billion baht was a violation of the constitution, the senator said in a letter to Election Commission chairman Apichart Sukhagganond.
       Mr Ruengkrai and Senator Paiboon Samsiripong complained during the upper house debate yesterday on the 2010 budget bill that the government did not even have the good manners to send a cabinet minister to attend the session.
       They said the government should not take the Senate for granted and assume it would rubber stamp the bill.
       Other senators criticised the bill for duplicating spending plans and were not convinced it would live up to government claims that it would significantly benefit the public.

Wednesday, September 9, 2009

Charter debate ruled in the public interest

       The prime minister has the right under the constitution to ask parliament to debate amendments to the charter, the Council of State says.
       Khunying Porntip Jala, secretarygeneral to the council which is the government's legal arm, told the cabinet yesterday Prime Minister Abhisit Vejjajiva could seek the debate in the parliament because it was aimed at the public interest.
       Deputy government spokesman Vachara Kannikar said Mr Abhisit was concerned about whether his proposal for the debate violated Article 122 of the constitution. The article requires members of parliament to work in the public interest and be free of conflict of interest.
       His call for a parliamentary session to debate the charter amendments,some of which cover political issues,could be in breach of the constitution.
       Khunying Porntip was quoted as saying the proposal did not imply any individual interest or a conflict of interest but concerned the public interest.
       After hearing the ruling, the cabinet approved Mr Abhisit's call for a joint meeting of the two houses to debate the constitutional amendments without a vote on Sept 16-18.
       Mr Abhisit yesterday said it was time to discuss the proposals finalised by the Senate-House joint committee on national reconciliation and constitutional amendments.
       MPs and senators are entitled to a joint session to discuss their differences because of the diversity of opinions over the amendments. Those who had proposed them would have the chance to explain their positions, he said.
       Mr Abhisit said MPs seemed to be in agreement with an amendment to Article 190 of the 2007 constitution con-cerning parliamentary approval for international contracts.
       But they are split on proposed amendments that concern controls on conflicts of interest among MPs and senators.
       They are also divided on the need to hold a referendum on proposed amendments and on establishing another constitution-drafting assembly.
       Parliament Speaker Chai Chidchob of the Bhumjaithai Party said he had set the joint parliamentary session for Sept 16-18 to allow enough time to thoroughly debate the proposals.
       People's Alliance for Democracy coleader Sondhi Limthongkul said the PAD would gather the signatures of 20,000 people to impeach the MPs and senators who proposed the constitutional amendments.
       Co-PAD leaders Pibhop Dhongchai and Somsak Kosaisuk said the 2007 constitution was created to check corrupt politicians while the proposed amendments were obviously aimed at their interests.

Sunday, September 6, 2009

CHARTER REWRITE SET FOR DEBATE

       The Cabinet is expected to approve a motion tomorrow to convene the joint House-Senate session for a genral debate geared for charter amendments, Prime Minister Abhisit Vejjajiva said yesterday.
       "The joint session is seen as necessary to form a decision on how to proceed with the charter rewrite," he said.
       Abhisit said he expected the lawmakers to deliberate issues in one session before voting on the process to bring about the draft amendments.
       He dismissed speculation his main coalition party had done an about-turn by supporting the rewrite, saying the Democrats had never opposed amending the charter. The only precondition was th erewrite should serve the public and not vested interests, he said.
       Following the Cabinet's approval of the government-sponsored motion, he said he would coordinate with Parliament President Chai Chidchob to schedule the joint session and its format for debate.
       Abhisit said the upcoming debate on a charter rewrite should not be linked to the issue of amnesty for political offences.
       The charter rewrite is expected to focus on six issues designed to improve the political system, according to the reconciliation panel's report, he said.
       Critics should not act in haste to condemn the rewrite before studying the proposed amendments, he said, arguing the rewrite of Article 190 for framing international agreements is not designed for the gain of political parties.
       He said the debate on charter amendments was deemed appropriate at this juncture because the government had already devoted sufficient attention to fighting economic woes.
       He warned against speculating whether the charter rewrite would quicken House dissolution. It still remains unclear whether or not the lawmakers will impose tranisitional clauses in order to delay the promulgation of revised provisions, he said.
       If there is a transitional clause, as happened in past amendments, then there is no linkage between the charter rewrite and a snap election, he added.
       The Democrat Party has agreed to convene the parliamentary session to debate the process for charter rewrite, its deputy spokesman Warong Dejkitwikrom said.
       After a preliminary review, the main coalition party has voiced support to amend two provisions related to the framing of international agreements and the revision from multi-seat to single-seat constituencies.
       He said his party might agree to the holding of a public hearing or a referendum on the draft amendments - if the public and the majority of lawmakers approved.
       Pheu Thai Party deputy leader Plodprasop Suraswadi called for a speedy process to amend the charter.
       "The deepening social divisions can be attributed to the Constitution and the problem will degenerate beyond rehabilitation without the timely action to rectify the flaws," he said.
       Plodprasop voiced optimism that the House and the Senate had sufficient votes to push for charter amendments. He claimed 188 opposition MPs and 170 coalition lawmakers and senators were in favour of rewriting the charter. A minimum number for the passage of a charter amendment is 324 votes.
       Former charter writer Seri Suwannapanont said he suspected a conflict of interest if MPs and senators were the main driving force for the charter rewrite. Seri reminded lawmakers they might face impeachment proceedings in case the amendments were designed for self-serving gains.
       Peopel's Alliance for Democracy spokesman Suriyasai Katasila warned the charter amendments might deepen the turbulence instead of resolving it.

Friday, September 4, 2009

EC appoints panel to look into conduct of Prasobsuk

       The Election Commission has appointed a committee to investigate the senate speaker over claims he failed to seek a ruling from the Constitution Court on the qualifications of 16 senators accused of violating the shareholding law.
       The law required Prasobsuk Boondej to seek the court ruling on the senators'qualifications within 30 days.
       EC secretary-general Suthiphon Thaveechaiyagarn yesterday said Mr Prasobsuk did not seek the ruling.
       Mr Suthiphon said the EC had asked its litigation team to look into Mr Prasobsuk's actions after it received a complaint from appointed senator Ruangkrai Le-
       kijwattana.
       Mr Ruangkrai asked the EC to probe whether Mr Prasobsuk had violated Article 266(1)of the charter.
       Mr Prasobsuk's alleged failure meant the EC was unable to vet the Suthiphon: Litigation qualifications of team to probe actions the senators.
       The EC also set up a subcommittee yesterday to look into the facts of the case and their legal implications. The subcommittee was expected to report back to the commission within 30 days.
       The Constitution Court would eventually decide if the Senate speaker should be removed from office if it was found he violated the constitution.
       Mr Prasobsuk yesterday said he had not neglected his duties nor helped his fellow senators evade justice.
       He said the EC had no right to investigate his conduct, but he would cooperate with it if it invited him to appear before it to answer questions.
       Mr Suthiphon said the EC had sent its decision to ban 13 MPs who allegedly hold stakes in state concessionaires to House Speaker Chai Chidchob.
       Mr Chai would pass the decision to the Constitution Court which had the final authority to rule if the MPs should be stripped of their seats.

Monday, August 31, 2009

BUDGET PASSED AFTER ALL-NIGHT SESSION

       Bill for fiscal 2010 approved in vote at 10.30am after three days of debate
       The government's Budget Bill for fiscal 2010 passed the House of Representatives in its final reading yesterday, after more than 40 hours of heated debate over three days.
       The debate on Friday continued all night with voting finally taking place at 10.30am yesterday.
       The Lower House voted 244 to 10 to pass the bill. It covers a budget of Bt1.7 trillion to be spent in the fiscal year starting on October 1. A total of 56 MPs abstained while 13 MPs did not cast any kind of vote.
       Many of the lawmakers and Cabinet members attending the marathon debate were tired.
       Some were spotted napping inside the meeting chamber while others took turns to take short breaks or get some sleep outside the debating room.
       After the bill was passed in its third and final reading, Prime Minister Abhisit Vejjajiva thanked MPs and parliamentary staff yesterday for the time and effort spent debating the bill.
       The PM, who attending the all-night debate, said his government would spend the budget efficiently and in a transparent manner.
       The bill will be tabled in the Senate next.
       Asked if he was worried about scrutiny of the bill in the Upper House, Abhisit said he expected to be able to explain certain points to senators if they found any items unclear.
       Some members of the opposition Pheu Thai Party attacked the budget yesterday as inefficient, saying that money spent boosting the economy would become useless.
       They said funding allocated to improve the livelihood of the rural poor, including the community sufficiency economy scheme, was not transparent.
       And they had evidence that some members of the ruling Democrat Party were involved in irregularities.
       Evidence would be sent to the Democrat Party later, the opposition MPs said.
       Following the bill's passage, coalition MPs received a short message that read:
       "Thank you very, very much for the meeting that was just completed. From government whips."
       Government whips sent text messages to update coalition MPs about the progress of the meeting throughout the night.
       Government MPs were reminded that they had to attend the meeting in full force as the coalition only has 18 MPs more than half the total number of members in Lower House - a slim margin to pass bills.

Friday, August 28, 2009

Puea Thai fails to halt budget debate

       House Speaker Chai Chidchob has refused to accept an application by Puea Thai Party lawmakers to delay the deliberation of the annual budget bill proposed by the government.
       Puea Thai MP for Chaiyaphum Charoen Chankomol yesterday asked the speaker to postpone debate on the budget bill because a special House committee did not present details of changes it had made, in which the 2010 budget was to be cut by 22 billion baht to 1.7 trillion baht.
       Mr Charoen said the House could not scrutinise the changes without the details.
       He also questioned the transparency of the changes which the committee had made.
       But the speaker argued that a report on the changes might not be necessary because the special House committee was made up of MPs from both government and opposition parties.
       Yesterday the Puea Thai Party also threatened to seek a Constitution Court ruling on the constitutionality of holding the debate.
       MP Surapong Towijakchaikul said the committee's failure to present details of its changes could be in violation of Article 167 of the constitution.
       Mr Surapong said the opposition would seek a ruling from the court.
       Two days have been set aside for the 2010 budget bill debate, which started yesterday.
       The vote on the bill was set for today but delays have forced the vote to be postponed until next week.
       Deputy Prime Minister Suthep Thaugsuban said he was sure the government would have the bill passed.He brushed aside reports that six ministers from the coalition Bhumjaithai Party would abstain from voting.
       The ministers claim they feared their votes could be ruled unconstitutional because they might have a conflict o f interest.
       Mr Suthep said even if they did not vote, the government would still have enough votes to have the bill passed.