Thailand's Agriculture Minister Axed Over ADB's Water Resources Program and Associated Agriculture Restructuring Loan
by Phairath Khampha
26 April 2000
Axed Pongpol blasts 'dictator'
The Chart Thai Party of Thailand went into a tailspin on April 11, 2000 after its secretary-general, Pongpol Adiraksarn, dropped from the Cabinet in a reshuffle bombshell, accused his party leader of trying to fatten party coffers with government funds. The whole controversy revolved around a $600 million Asian Development Bank loan and related water resources capacity building technical assistance, to Thailand and the unpopular reforms that the ADB wants to bring about to water resources management in Thailand.
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"My pledges to safeguard the Asian Development Bank loan might have irked some greedy people," said Pongpol, whose future in the party was now clouded. Pongpol was known to favour some of the the demands made by the ADB for the loan. However, these changes are seen by most Thais as a sell-out of their economic sovereignty. The changes also required that farmers be forced to pay for the irrigation water they use. Currently, the use of irrigation water in Thailand in effect is subsidized as farmers do not pay for its use. However, as most farmers in Thailand live at or near poverty and the price of their crops keeps falling, such fees would be onerous and only serve to impoverish them further. Hence, the changes demanded by the ADB seem to counter its apparent new philosophy to work to dimish poverty in the region. |
It was a well-known fact within government circles and even to some in Bangkok's streets, particularly in the Royal Irrigation Department, that Pongpol and his advisors did not favour that the ADB-financed Capacity Building in the Water Resources Sector Project Technical Assistance be carried out by the Thai firm TEAM Engineering, together with its British associate, Halcrow Water, as it had too close connections with Banharn Silapa-archa. However, there also has been much opposition in the country to this manoeuver as the Thais believe they should have a say as to how they manage their own water, not an outside body such as the ADB.
In 1999, the ADB threatened to cut off all or part of the $600 million agricultural restructuring loan to Thailand if its demands were not met, particularly with respect to the implementation of water-user fees and restructuring water resources management in Thailand. TEAM Engineering supported Banharn Silapa-archa's dealings with the ADB in favour of meeting the bank's demands. It was common knowledgeeven among farmers who followed the issue with keen interest. Pongpol suspected his ouster was linked to his conflict with Mr Banharn over management of the $600 million loan from the Asian Development Bank and over which international consulting firm would be selected to carry out the technical assistance, as this technical assistance would lay out the groundwork for carrying out the changes to water resources management in Thailand, as imposed by the ADB.
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Pongpol must have known that if the restructuring plan went ahead as the ADB and as Banharn Silapa-archa demanded he would have been axed. This is obvious because many close to him had stated he seemed to be able to foretell his political demise weeks before. Indeed, with the selection of Halcrow Water and TEAM Engineering by the ADB in early March to carry out this technical assistance, Pongpol's future was all but cast. The Bank's selection of Halcrow and TEAM was a manuoever of dimplomatic expediency as Banharn Silapa-archa is very, very influential within the Thai government. |
Pongpol said the real reason Banharn Silapa-archa removed him was that he stood in the way of Banharn's attempt to siphon money from the ADB loan to the agricultural structural adjustment plan. The plan would be worked out between Banharn, his advisors and TEAM Engineering. Pongpol claimed the plan would be set up so that Banharn would profit from the changes made to the national water resources management policy arising out of the technical assistance.
RELATED STORY: Banharn's Museum to Money Politics The tangled web of Banharn's corrupt money politics and his power as kingmaker and money siphon, Thailand's Agriculture Ministry, Pongpol, the $600 million ADB loan, water resources management capacity building in Thailand, and agricultural restructuring. |
The accusations from Mr Pongpol, generally perceived as a well-educated, honest member of the party, carried echoes of 1995-1996, when Mr Banharn was prime minister of a government widely considered one of the most corrupt Thailand had known. Mr Banharn holds no ministerial role in Mr Chuan's Government, yet his faction exercises total control over Chart Thai, which has 37 MPs and is the third-largest party in Mr Chuan's coalition Government. |
Banharn Silapa-archa is reknowned in Thailand for his venal nature and is often colloquially referred to as the godfather (khun paw) of his home province of Suphanburi where he enriched himself through numerous rackets and influence peddling, questionable contracts to develop the province and generally carrying on in a more successful fashion than most of the similarly corrupt Thai politicians.
Pongpol was replaced as agriculture minister by Prapat Pothasuthon on April 11 after Thailand's King approved the Cabinet reshuffle list which also made other Chart Thai ministers switch places. Banharn had shown for some time that he had intended to control the Agriculture Ministry, the money from the bank loan and changes to be made to Thailand's national water policy, Pongpol added. As well as dumping Pongpol from his agriculture portfolio. Banharn also refused to name the secretary-general as deputy prime minister, effectively removing him from the government. Instead Banharn named Ang Thong MP Viroj Pao-in as deputy prime minister.
Another new deputy minister is Democrat top adviser Banyat Bantadtan, who was also named Interior Minister to replace Sanan Kachornprasart, who resigned to face charges that he falsified his assets declaration.
"From now on, it is an eye for an eye. I will draw my sword for an attack and fight to the end. One day I will write a novel about a dwarf carrying a hunchback," Pongpol said, seething with anger, referring to the diminutive, stunted Banharn.
As soon as unofficial reports of his exclusion from the next Cabinet emerged, Pongpol called a press conference to say that his next political move remained open. He expressed his willingness to review offers to join other parties, hinting at a possible defection or a party split.
"I have done my best for the Chart Thai Party. But it is unfortunate that Khun Banharn didn't know how to be a good boss or how to retain capable staff," he said. He said he felt sorry that fellow party members had failed to speak out on his behalf when he needed their support.
The Democrats stood behind their secretary-general, Sanan, despite his political problems stemming from his declaration of personal assets, Pongpol said. "But the Chart Thai Party has been unkind to me. I don't know why Banharn hates me so much," he said. He claimed that Banharn had violated party rules by nominating new ministerial candidates without consulting party executives.
"The party has plunged to its lowest point in 25 years because the party leader is a dictator," Pongpol said. Regarding the new Cabinet appointments, he said some Chart Thai members had won posts and lost his friendship in the process.
He had predicted that Banharn would "meet his downfall" because of his "misdeeds" related to the ADB loan, the technical assistance, and his opposition to certain changes in the national water resources policy.
"The whole thing was almost as if premeditated," he said, "What Banharn Silapa-archa decided goes hand-in-hand with what the bank decided, and the selected consultant was obviously a fait accompli."
Pongpol cleared out his office on the same day, ahead of the official announcement of the Cabinet line-up that evening. Prominent Chart Thai members voiced optimism that Pongpol would remain as secretary-general, despite his failing to secure a government appointment. Prayuth Siripanitch, who became deputy labour minister in the shuffle, said the removal of Pongpol from the Cabinet was well-intended.
"Banharn had intended to free up Pongpol to concentrate on the upcoming general election," he said.
Deputy Education Minister Kanchana Silapa-archa, Banharn's daughter, said she believed her party's executives would soon be able to clear up the "misunderstandings".
"The party has resolved to empower the party leader to make decisions on new Cabinet appointments. Now that decision has been made. The party elders should be able to clear up any lingering problems," she said. Kanchana denied speculation that Banharn's decision was made because of a personal grudge against Pongpol, although she did allude that the connection between her father and TEAM had some effect on making the decision.
Chart Thai deputy secretary-general Somsak Prissanananthakul called for members to respect Banharn's decision, which was made on behalf of the party. Somsak said he had a talk with Pongpol, urging him to observe party rules.
"I think all problems can be solved, once all parties have a chance to explain themselves," he said.
He expressed confidence that Pongpol would remain with the Chart Thai Party. Democrat secretary-general Sanan said the government shake-up would not lead to instability since the government term would end in less than six months. New Aspiration Party deputy leader Adisorn Piengket said the removal of Pongpol indicated an end to Rajakru influence over the Chart Thai Party. The Rajakru group, to which Pongpol was a political heir, founded the party but was now in retreat as Banharn's Suphan Buri group had completely taken over the party's helm, Adisorn said.
Banharn interfered in other ministries under the control of the Chart Thai Party, but their ministers or deputy ministers dared not speak out, Pongpol said.
"They have complained to me, but always fell silent in front of the man. They have become robots despite the fact that they, too, were elected by the people," he said.
"For example, before directors of state secondary schools can be appointed, Banharn has to check the names first," Pongpol said. "This kind of interference has sent management of ministries under Chart Thai into disarray."
The ADB technical assistance and loan was just one of many cases Banharn meddled in at the Agriculture Ministry, Pongpol said. "He became involved in all departments. He even gave instructions to department heads without the minister's knowledge and made them feel very uneasy and confused."
Responding to Pongpol's allegations, the Chart Thai Party said it planned to have the new agriculture minister, Prapat Pothasuthon, investigate the ADB technical assistance and loan program so that he can explain it to the public, even though Halcrow and TEAM were to mobilise and start implementing the technical assistance by the end of April. Banharn's daughter, Deputy Education Minister Kanchana Silapaarcha, said she expected her father to publicly respond to the allegations over the ADB water resources capacity building technical assistance and loan.
Thais' opinion divided on Pongpol's fate, but no improvement expected
Most people in Bangkok appeared to have some concerns over the issue of the ADB technical assistance and loan being tied to the removal of Pongpol Adireksarn as agriculture minister, an opinion survey has found. The survey, by Assumption University among 1,120 voters in Bangkok on carried out on April 12 and 13, found that 39.3 percent of respondents declined to make any comment while 22.6 percent supported his purge. The survey recorded 38.1 percent of the respondents disagreeing with his removal and saw the issue being one of corruption and influence peddling, a loss of control of Thailand's internal affairs to foreign organizations such as the ADB and a serious lack of transparency of the issues surrounding the ADB's technical assistance and loan for agricultural and water resources management restructuring. There was also concern in the streets as to Halcrow and TEAM were made the engineering consultants considering the circumstances surrounding the loan and cabinet reshuffle.
As many as 41.9 percent of respondents said Pongpol's replacement, Prapat Pothasuthon, made the Prime Minister Chuan Leekpai's cabinet look worse, while 19.3 percent thought otherwise. Thirty-eight percent of respondents made no comment.
As many as 57.4 percent of respondents said they did not trust the integrity of Pongpol's replacement, particularly as the reshuffle seemed to be a manoeuver to allow Banharn to make money from the outcome of the technical assistance and the loan. Many of the respondents were dissatisfied with the selection of companies to carry out the project that obviously favoured Banharn's outcome in the controversy.
When asked to name a party they wanted to become the next coalition leader, 29.9 percent of respondents named the Thai Rak Thai Party of Thaksin Shinawatra. The Chuan's Democrat Party was second with 19.8 percent. The Chat Pattana and Prachakorn Thai came third and fourth with 4.4 percent and 3.9 percent respectively. Nineteen percent of respondents said no party deserved to form a government, while 33.3 percent offered no comment.
Government Spokesman Akapol Sorasuchart on April 13 admitted that the conflicts inside the Chart Thai Party and Pongpol's removal had affected the image of the coalition government and was seen by most Thais as a sell-out of their economic sovereignty to the ADB. But, he said, Chuan would ensure that all Cabinet members nevertheless would do their best to serve the public and a very careful eye would be kept over the activities of Halcrow and TEAM.
Meanwhile, Chuan said yesterday he had instructed the new Cabinet ministers, especially Interior Minister Banyat Bantadtan, to be ready to start work immediately after the long Songkran holiday (April 13-15) as the technical assistance was scheduled to start in mid-April. Chuan said he also asked Banharn to try and settle the issues between himself and Pongpol, especially as Banharn had dictated how the technical assistance was to be carried out and how the loan from the Asian Development Bank to the Agriculture Ministry should be spent.
Banharn stamps his authority
To paraphrase the old tear-jerker, it's my party and I'll do what I want to. Banharn Silpa-archa is classic old school; argue with the boss of Chart Thai and you'll be shown the door. At least that's what observers say happened to Pongpol Adireksarn.
The Chart Thai Party started life as a party of "warriors", having been formed by the powerful Soi Ratchakhru military dynasty made up of the Adireksarn and Choonhavan families. The party has been bankrolled over the years by merchants such as Banharn Silpa-archa. But things have changed a lot over time. Mr Banharn now had political influence of his own and felt little need for generals-or their offspring.
So when Pongpol Adireksarn, son of party founder Maj-Gen Pramarn Adireksarn, outlived his usefulness, Mr Banharn saw little reason to keep him around, especially when he was obstructing the Chart Thai leader from interfering in the affairs of the Agriculture Ministry and bringing about changes to the national water resources policy--changes from which he and his family could prfit immensely. Booting Mr Pongpol out of the cabinet satisfied both personal revenge for Mr Banharn and Chart Thai's preparations for the next general election.
"What did I do wrong?" asked Mr Pongpol after the surprise move designed by Mr Banharn to end his role in the party founded by his father and uncle. "Why does he hate me so much? I have never done anything wrong or damaging,"
Mr Pongpol said that as party secretary-general he was helping Chart Thai members of parliament campaign in their constituencies, and as a minister he had done his best to promote agriculture-the basis of the Thai economy. Ampol Kitti-ampol, the deputy permanent secretary for agriculture, agreed. "Minister Pongpol focussed on macro-agricultural policies that will benefit the overall agricultural sector," he said. "It is true he opposed some of the conditions enforced by the ADB because they were detrimental to the welfare of Thailand's rural people. Some of these demands would only have helped the rich will the rest of the people would have become poorer."
Mr Ampol said Mr Pongpol had allowed farmer organisations to take over responsibility from the ministry for procuring fertilisers that better match the specific demands of farmers in different regions.
With the giant Asian Development Bank loan and the selection of Halcrow and TEAM to carry out the ADB's technical assistance which was the straw that broke the camel's back in the relationship between Mr Pongpol and Mr Banharn, the minister had taken the lead in negotiations and had managed to work out useful spending plans before obtaining the money. He even authorised government staff from outside agencies to supervise the spending in order to make the process more transparent.
Negotiations on farm matters at international forums were the most prolific ever during his tenure with many senior agricultural officials travelling overseas for talks. He also closed offices in the provinces which were duplicating the work of others.
"Without courage, this could not have been done," Mr Ampol said. Mr Pongpol said the only thing that justified his dismissal was his role in the management of the $600 million loan from the ADB to restructure the management of the nation's water resources and farm projects.
"I vowed not to let anyone exploit the money. My words might have hurt someone so much that he plotted to oust me," Mr Pongpol said.
Thai people protest as popular opposition to $600 million ADB loan grows
About 1,000 Thai people representing northeastern farm organisations on April 19 gathered in Khon Kaen Province to protest against the government's US$600 million worth of Asia Development Bank loans and technical assistance for water resources management and agricultural restructuring. They said the technical assistance and loans were doing more harm than good for Thai farmers. The protestors said they were particularly opposed to ADB preconditions that required farmers to pay for use of ADB-funded irrigation projects. They said they did not ask to have the projects constructed. Many also were angered that the ADB had awarded the techinal assistance contract to TEAM Engineering, which they said was working to ensure the restructuring of Thailand's water resources management favoured the country's economic and political elite at the expense of the rural people and farmers. They said water costs would only add to their already high production costs. Water costs threatened to destroy the fabric of the agricultural society, they said. They joined industrial workers at a gathering at Bangkok's Ratanakosin Hotel held during the following two days.