PM assures transparency of Bt2tn loan bill

Despite Prime Minister Yingluck Shinawatra's assurance of transparency of the Bt2 trillion borrowing, the opposition still says "No" to the bill.

Yingluck assured all MPs of the transparency in infrastructure investment projects.At the House debate on Thursday, she said that the procurement process is subjected to PM's Office procurement rules and other sets of rules. All MPs can seek updates on the projects through House committees, aside from annual reports to Parliament.

"I beg you to direct your debate to the essence of the investment. It doesn't matter who initiates the projects. What matters is the quality of life of people," she said.

In supporting the Bt2 trillion borrowing bill, she said that the investment will boost the economy and hence the public debt to GDP ratio will be kept below 50 per cent, leaving room for future fiscal ammunition in light of unexpected events.

She also insisted that the bill is necessary as budget financing does not guarantee continuity of mega projects, in light of frequent government changes.

"All the projects will be monitored to assure that they meet our ojbectives, in enhancing competitiveness, GDP and the quality of life," she said.

Transport Minister Chadchart Sittipunt supported this by saying that, in the past there were a number of projects winning approvals for on-budget financing. However, due to complications in budget allocation, many projects remain incomplete. For example, the 5 motorway projects with combined length of 705km, approved in 1997. To date, only 146km was completed. Under the 2nd phase of 4-lane road expansion project (7,300km), approved in 1995, 1,600km remains incomplete.

"We have sounded out supports for the investment and learnt about concerns in transparency. We're also concerned about transparency and acknowledge that without transparency, the projects won't show progress no matter how good they are. But if we hold back because of this fear, we won't go anywhere," he said.

He urged for the approval of the bill and urged public participation in the checks and balances. To help on this is the new procurement rules, which will take effect in April. Under the rules, government contractors must reveal their balance sheets.

The Transport Ministry subjects itself to the monitoring of the Anti-Corruption Organization of Thailand.

"Please help us monitor the projects. Tell us the irregularities and we're ready to listen. Nobody wants to face a corruption charge," he said.

Opposition leader Abhisit Vejjajiva however insisted that the Opposition supported the investment, but could not give the goverment the borrowing mandate - given that this guarantees no transparency and this will raise the country's financial burden. The higher public debt will leave no room for spending on other areas like health. He noted that competitiveness can be enhanced in many fronts, not just the logistics.

He insisted that granting the mandate to the government means the Opposition cannot help in screening project priorities, as that would be decided by the government.

"If connectivity is the key, why the Bangkok-Chiang Mai high-speed train project comes before Bangkok-Padang Besar?" he asked.

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Source: http://www.news.thethailandlinks.com/2013/03/28/pm-assures-transparency-of-bt2tn-loan-bill/